HCIS 245C Electronic Data Interchange

Electronic Data Interchange

HCIS/245C

Write a 150- to 300-word summary describing electronic data interchange (EDI). Include the following in your summary:

•Define EDI.

•How does using EDI facilitate electronic transactions?

Electronic data interchange (EDI) is an electronic communication system that provides standards for exchanging data via any electronic means. In 1996, the National Institute of Standards and Technology defined electronic data interchange as “the computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments.

Using electronic data interchange EDI services provide a more efficient and rapid exchange of information between physicians, other health care professionals and customers. We facilitate electronic transactions that will result in decreased paperwork by sending information back and forth between two parties using electronic system instead of using a bunch of paper. It can reduced errors because instead of having someone hand write a document and someone may not be able to properly read it due to sloppy handwriting. It can make faster payment and better service because you do not have to wait for information to be mailed from one person to another.

Prior to the mid-1980s, electronic computer file exchange was realistic only for larger companies with mainframe computers and knowledgeable IT staff.

1. Pre-1980’s Before EDI

Most ended up doing ‘rip and read’ EDI, which entailed receiving a document electronically, printing it on paper, and re-keying it into their business application. To send a document back to a customer, the data would then be keyed into the EDI translation software

1. Mid-1980’s- EDI Attracts Attention

EDI survived the dot-com crash, and showed no signs of going away anytime soon.

1. Early to mid-1990’s E.D.I or D.I.E
2. Various industries, especially retail, continued to drive the adoption of EDI. Retailers were hungry for more, and their suppliers reluctantly complied. The phrase “E.D.I. or D.I.E.” was coined as a warning for companies to adopt EDI technology or face the consequences of losing customers and falling behind their competitor.
3. Late 1990’s- The Internet changes everything.
4. EDI was no longer viewed as the only technology for doing business electronically. It had become a ‘bad word’ to some, and was perceived as overly complicated and costly for small companies.
5. Early 200’s- EDI thrives again