Electronic Data Interchange (EDI) is a system which allows document information to be communicated between businesses, government’s structures and other entities. It is a set of standards which creates a cohesive system within which all parties are able to electronically exchange data information within a set of protocols.

Although it can be considered that EDI consists of only the actual conveyance of the document, it is also seen as the implementation of the operating systems whereby EDI can be put into practice. EDI is the data format of most electronic commerce transitions in the world. There are other competing conveyance portals such as XML services, Internet and World Wide Web; however, EDI remains the dominant data format.

The EDI standards describe structures that represent documents such as an invoice or shipping order for a company. EDI sets up a system whereby businesses and other entities with non compatible operating systems are able to communicate on the same “page”, so to speak. EDI provides applications whereby a more efficient and environmentally friendly network is created between communication partners. It allows a homogenous viewing of all documents put through the system. 

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I have heard that EDI is a relatively old technology. Is this true?

EDI has been around for over thirty years now and is regarded as a very mature IT technology. As EDI is so entrenched within many companies it is very difficult to replace with another technology overnight. As new technology, such as the Internet, has emerged, EDI has had to embrace these new technologies to remain an efficient business tool for communicating documents between companies. EDI will be around for many years to come.