Electronic data interchange

I. Definitions :

Electronic data interchange (EDI) is the intercompany communication of business

documents in a standard format. With EDI, the information moves directly from a
computer application in one organization to an application in another. EDI standards,
which specify what information goes where in an EDI document or message, eliminate the
need to manually rekey information so that it can be accepted. This automated capability
enables information to be shared rapidly, instead of the hours, days or weeks required with
paper documents or other methods.

Businesses use EDI to integrate and share a range of document types — from purchase
orders to invoices to requests for quotations to loan applications and more. In most
instances, these organizations are trading partners that exchange goods and services
frequently as part of their supply chains and business-to-business (B2B) networks.

II. Why the EDI is important ?

The world as we know it runs on and depends on EDI, a global, foundational B2B technology.
It has gained mainstream adoption throughout businesses worldwide as the preferred means to
exchange documents in the B2B transaction process.
As an automation technology, EDI delivers core business benefits:
 Saves time and money. Automates a process previously manually executed with
paper documents.
 Improves efficiency and productivity. More business documents are shared and
processed in less time.
 Reduces errors. EDI’s rigid standardization helps ensure that information and data is
correctly formatted before it enters business processes or applications.
 Improves traceability and reporting. Electronic documents can be integrated with a
range of IT systems to support data collection, visibility and analysis.
  Supports positive customer experiences. Enables efficient transaction execution and
prompt, reliable product and service delivery.
EDI is important to both large and small businesses. For large organizations, EDI enables
standards to be instituted across trading partners to consistently achieve benefits. For smaller
organizations, adherence to EDI offers greater integration with larger firms that have big
budgets and strong influence.
Metalanguages like Extensible Markup Language (XML) or JavaScript Object Notation
(JSON), and application programming interface (API) integration complement, rather than
replace EDI. Companies must be ready to handle an ever-increasing number of document
formats and transmission options. One global manufacturer routinely exchanges about 55
different document types with nearly 2,000 partners.

III. How does EDI work?

 Supplier’s proposal sent electronically to purchasing organization.

 Electronic contract approved over network.
 Supplier manufactures and packages goods, attaching shipping data recorded
on a bar code.
 Quantities shipped and prices entered in system and flowed to invoicing
program; invoices transmitted to purchasing organization.
 Manufacturer ships order.
 Shipment notice EDI transaction sent (not shown).
 Purchasing organization receives packages, scans bar code, and compares data
to invoices actual items received.
 Payment approval transferred electronically.
 Bank transfers funds from purchaser to supplier’s account using electronic
fund transfer (EFT).
 Robotic Process Automation

I. What is Robotic Process Automation?

Robotic Process Automation is the technology that allows anyone today to configure computer
software, or a “robot” to emulate and integrate the actions of a human interacting within digital
systems to execute a business process. RPA robots utilize the user interface to capture data and
manipulate applications just like humans do. They interpret, trigger responses and
communicate with other systems in order to perform on a vast variety of repetitive tasks. Only
substantially better: an RPA software robot never sleeps, makes zero mistakes and costs a lot
less than an employee.

II. How does Robotic Process Automation work?

RPA robots are capable of mimicking many–if not most–human user actions. They log into
applications, move files and folders, copy and paste data, fill in forms, extract structured and
semi-structured data from documents, scrape browsers, and more.
III. How is RPA different from other enterprise automation
tools?
In contrast to other, traditional IT solutions, RPA allows organizations to automate at a
fraction of the cost and time previously encountered. RPA is also non-intrusive in nature and
leverages the existing infrastructure without causing disruption to underlying systems, which
would be difficult and costly to replace. With RPA, cost efficiency and compliance are no
longer an operating cost but a byproduct of the automation.

IV. What are the business benefits of RPA?

Robots are here to stay. The faster you harvest their potential, the faster you create a
competitive edge for your business. Robotic Process Automation delivers direct profitability
while improving accuracy across organizations and industries. Enabling RPA to handle any
processes will not only transform and streamline your organization’s workflow. It will allow
for superior scalability and flexibility within the enterprise, doubled by fast, tailored response
to specific needs. Software robots are easy to train and they integrate seamlessly into any
system. Multiply them, and instantly deploy more as you go. They constantly report on their
progress so you can go even bigger and better by using operational and business
predictability, while improving strategically.
 Business Process Reengineering

I. What is BPR?

Business Process Reengineering (BPR) is a systematic, disciplined approach to reducing

organizational costs and redundant business processes involving the analysis of existing
human and automated workflows.

II. When is Business Process Re-Engineering Required?

The need for Business Process Reengineering surfaces through a variety of ways. For
instance, from our article "Is it Time to Overhaul Your Processes?" here are some
indicators that it may be time for a BPR project.

 Customer complaints and refund requests are rising.

 Staff stress, disputes, and turnover are high.
 Chaos reigns after experienced employees depart or go out on leave.
 Profitability is falling.
 Sales leads are not being followed up upon quickly.
 Corporate governance has been lacking.
 You are struggling with your cash flow.
 Your inventory levels are rising.
 You can’t fill customer orders quickly enough.

BPR Process Example

III. The principles of business process reengineering

In 1993, Hammer and organizational theorist James Champy published a book to expand
upon the ideas Hammer proposed in his research paper. The book, which was entitled
“Reengineering the Corporation: A Manifesto for Business Revolution,” quickly became a
national bestseller. The authors suggested seven principles for reengineering a work process
and achieving a significant level of improvement in quality, time management, speed and
profitability.

1. Organize around outcomes, not tasks.

2. Identify all the processes in an organization and prioritize them in order of redesign
urgency.

3. Integrate information processing work into the real work that produces the
information.

4. Treat geographically dispersed resources as though they were centralized.

5. Link parallel activities in the workflow instead of just integrating their results.

6. Put the decision point where the work is performed and build control into the process.

7. Capture information once and at the source.

IV. Future of BPR

During the early part of this century, BPR was sometimes regarded as simply a
business buzzword of historical interest. A recent emphasis in business on digital
transformation as a way to gain competitive advantage, however, as well as the
pervasiveness of the Internet of Things (IoT) and advances in artificial intelligence
(AI) have spurred many companies to radically rethink their workflows and make
technology-driven changes. In the future, it's expected that business process
reengineering will continue to be part and parcel of most business transformation and
enterprise resource planning initiatives.