The business practice of EDI is nothing new. Electronic data interchange has been a key player in many business industries – nearly all businesses, actually. But even though EDI has been around for decades, major changes are happening to the practice of data communication via electronic means. For one thing, EDI cloud services are being chosen over traditional EDI services. But why?
First, let’s cover the basics of EDI and how it all works.
EDI got its beginnings back in the 1950s. At this time, the second wave of major technological innovations was happening, and EDI was one of those innovations. The entire practice of EDI is based around the idea that communication between businesses (B2B) can be simple, and it can be done entirely through electronic resources.
This concept is nothing new in today’s day and age; businesses and individuals alike are using electronic means for communication each and every day. But back in the day, this was a HUGE deal, and some experts say that it has paved the way for the way businesses operation and communicate with one another today.
From the beginning, EDI used data encryption tools to format all business documents in the same way. Basically, it works by receiving a document, using the encryption tools to change it into the “EDI language”, and pass it on to the recipient or integrate it into the existing ERP system. The same goes for sending a document; the information is uploaded, formatted and encrypted, and sent to the intended recipient.
Companies Are Moving from Traditional to Modern EDI Solutions
With so many changes happening throughout the technological world, it makes sense that EDI software companies are making major changes as well. The only way to avoid becoming obsolete is to keep up with these changing times, which is why traditional EDI is turning into a cloud-based service. Here’s what an EDI expert has to say about this drastic transformation:
“Cloud EDI software offers a combination of technological and business process improvement designed to meet the demands of a 2019 business. From data transformation capabilities to streamlined automation, cloud EDI tools put your enterprise in a position to tackle any potential integration challenges that arise, without having to deploy and manage the software and hardware.”
How a Cloud-Based System is Changing the Concept of EDI as We Know It
There’s no denying that EDI has experienced some challenges in the past few years. Some experts are even predicting that EDI will become obsolete within the next decade or two. Others are saying that this switch to cloud-based operating will make a huge difference. A modern business just wants to have a modern solution for information exchange, one that is easy to use and actually meets the hopeful ROI.
With cloud-based EDI, that’s exactly what you’ll get. EDI companies that have migrated to the cloud are now offering a service that is easy to use, and more importantly, actually makes a difference in the day-to-day business operations.