Hi,
EDI
Electronic Data Interchange (EDI) is the process of using computers to exchange business documents between companies. Previously, fax machines or traditional mail was used to exchange documents. Mailing and faxing are still used in business, but EDI is a much quicker way to do the same thing.
EDI is used by a huge number of businesses. Over 100,000 businesses have replaced the more traditional methods with EDI. This new system has a number of benefits; cost is one of them. Computer to computer exchange is much less expensive than traditional methods of document exchange. Processing a paper-based order can cost up 70 US dollars (USD), whereas using EDI costs 1 USD or less.
As a computer processes the documents in EDI, there is also less chance of human error. Speed is another benefit. A paper purchase order can take ten days to two weeks from the time the buyer requests it to the time the shipper sends it off. Now, the same order can be processed in less than a day.
These faster transaction times help maintain efficient inventory levels. They also contribute to a better use of warehouse space, and less out-of-stock problems. This in turn leads to a reduction in freight costs, as there should be no need for last minute urgent delivery surcharges.
There are a few drawbacks to the process. EDI can only work if everyone the company has deals with is using the same method. If the changeover has not been made within some businesses, other companies dealing with them may have to use EDI as well as the more traditional methods. This can be costly and time consuming. It may involve one member of staff maintaining the mailing process while another worker sends documents electronically.
EAI
EAI stands for Enterprise Application Integration. This is a process that brings together enterprise computer applications under a common programming umbrella to increase functionality and performance.
At its most basic, EAI shares data between applications. EAI can have several purposes. It can link databases, sharing data and providing a backup database in case problems arise. EAI can also provide data warehousing, funneling data from several databases into one for optimal use. Businesses also use EAI to complete a single business transaction across multiple systems.
The most innovative use of EAI is to create a common virtual system. In other words, EAI can meld a series of applications and/or databases into one cohesive operating machine. This is without a doubt a more powerful option than one server operating on its own.
Why would companies want to do this? Among the reasons are to take advantage of new technology, such as Internet and intranet functions. Related to these are e-commerce and electronic communication, such as email and videoconferencing. The vast majority of EAI users are large businesses that have large data sharing requirements.
One well-known use of EAI is by credit card companies and other watchdog entities whose goal it is to catch credit card thieves. EAI allows these businesses to efficiently track millions of bits of data and to mine that data for a specific purpose. Another popular use of EAI is by financial institutions that want to help their customers complete foreign currency transactions online.
To help regulate and sponsor the use of EAI, members of companies around the world have formed the EAI Industry Consortium. The EAIIC is dedicated to getting the most out of the EAI process while striving to guarantee that industry best practices are maintained. EAI begin in earnest in the 1990s, as businesses discovered the need for more cohesive software solutions to their data sharing and integration problems. EAI has gained steadily in popularity and looks to be here to stay as a solution to the problem of merging complex systems toward a single goal.
Regards
Aashish Sinha
PS : reward points if helpful
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