Planning for electronic data interchange

A detailed analysis of electronic data interchange undertaken by a large number of U.S. companies is presented and a model of strategic implementation is suggested which illustrates how factors such as the nature of markets and distribution channels, organizational structure and process and buyer power influence the implementation of EDI with suppliers and customers.

Abstract

Abstract There is an abundance of literature about the impact of the new electronic communications technologies and most of the authors attest to its value and theoretical benefits. Many organizations are working in this area and producing novel implementations, but for the general company there is little that is of help in planning for these systems. In order to overcome this deficiency, this article presents a detailed analysis of electronic data interchange (EDI) undertaken by a large number of U.S. companies. The results suggest a model of strategic implementation which illustrates how factors such as the nature of markets and distribution channels, organizational structure and process and buyer power influence the implementation of EDI with suppliers and customers. Five generic EDI strategies have been identified and the impact of market share and IT expertise on these are discussed. Finally, the authors give their views on some of the long–term issues and suggest some possible outcomes.