Economics of EDI Investments

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Author(s): Rahul A. Sarker (University of New South Wales, Australia)and Mahbubur Rahman Syed (North Dakota State University, USA)
Copyright: 2000
Pages: 18
Source title: Electronic Commerce: Opportunity and Challenges
Source Author(s)/Editor(s): Syed Mahbubhur Rahman (Minnesota State University, Mankato, USA)and Mahesh S. Raisinghani (Texas Woman’s University, USA)
DOI: 10.4018/978-1-878289-76-6.ch010

Keywords: Accounting and Finance / Business & Management / Business Science Reference / E-Commerce

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Abstract

Electronic data interchange (EDI) technology gives organizations an opportunity to exchange their information and messages electronically, instead of with paper documents, and leads to a new way of doing business known as electronic commerce (EC). The benefits of EDI include less delay in data handling and labour savings in the areas of data transcription, controls, and error investigation and correction. As a result implementation of EDI improves the following: • the internal operations of a firm by reducing the process-cycle time, • responsiveness to customers, • trading partner relationships, and • the ability to compete, both domestically and internationally.

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