| Evolving Metrics |
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| Written by Scott Koegler | |
| Monday, 26 May 2008 | |
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Over the last several weeks we've been tracking your questions and comments regarding the costs associated with managing an EDI infrastructure. This topic is not a new one, In fact it was one of the first issues we dealt with four years ago when we started the ec-bp.org. What has changed however, is the sophistication of people determined to find these answers. What I find most interesting about this exercise is the apparent lack, even over all the years of EDI implementations, of any common set of metrics to analyze the costs and benefits of EDI in an enterprise. My assumption is that for so many years, the choice to deploy EDI has not really been so much a matter of choice, rather than something mandated by a supplier's customer. Certainly, the benefits to an EDI implementation from the perspective of a customer organization seems to be a relatively straightforward calculation. The benefits of placing and tracking orders electronically can simply decrease the time and paperwork previously associated with the process. For the supplier, the calculus was a bit different. When the customer decided to place orders only with those vendors who could accept orders via EDI, the vendor had a simple choice: they could either implement EDI and continue to receive orders, or stop doing business with their customer. The days of massive deployments and customer mandates may not be in the past, but clearly many vendor organizations have reached a point in the evolution of EDI that they are reevaluating their choices. For some enterprises, this revaluation comes because of a merger or acquisition, changes to business processes, or even because of significant increases in volumes of orders. As these changes are being considered, organizations are finding an increasing set of options to choose from with regard to EDI services and applications. Your comments also indicate that your cost analysis includes much more than the traditional costs that were based primarily on the EDI VAN. For some organizations, the cost of the van is a known and fixed expense. For other organizations, the cost of the van has disappeared in favor of the significantly reduced cost associated with Internet connections. And speaking of Internet connections, the relatively new category of SaaS, Software as a Service, has been making inroads with regard to replacing software installations previously found inside the firewall. Regardless whether your company is a buyer organization or supplier organization, these are interesting times for EDI implementations. And the time is right for an open discussion of the specifics that drive your company in deciding what options to pursue. Next month, at the UConnect Conference in Dallas, Texas, those participating will have the opportunity to learn more about all of the options on the table. While you are there, I invite you to stop by the ec-bp booth on the show floor, to talk about your decision process and how you evaluate the initiatives you are putting in place. Whether you would prefer to offer your comments, or to participate in one of our video interviews, you are invited to voice your opinion and experience. This invitation is open to organizations implementing EDI as well as to EDI software and services vendors. In particular, if you have specific cost metrics that you would be willing to share with the EDI community, we would welcome your contribution. If you are not attending you connect, feel free to contact us through this website. |