It refers to the structured transmission of data between organizations by electronic means.
It is more than mere E-mail; for instance, organizations might replace bills of lading and even checks with appropriate EDI messages. It also refers specifically to a family of standards, including the X12 series.
However, EDI also exhibits its pre-Internet roots, and the standards tend to focus on ASCII-formatted single messages rather than the whole sequence of conditions and exchanges that make up an inter-organization business process.
In 1992, a survey of Canadian businesses found at least 140 that had adopted some form of EDI, but that many (in the sample) "[had] not benefited from implementing EDI, and that they [had] in fact been disadvantaged by it." Bergeron, François; Louis Raymond (1992). "The advantages of electronic data interchange". ACM SIGMIS Database 19..31.
The National Institute of Standards and Technology in a 1996 publication defines Electronic Data Interchange as "the computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments.
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