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Is The EDI Industry Really Stagnating? PDF Print E-mail
Written by Scott Koegler   
Monday, 13 October 2008

I've been involved in a variety of industries over the years, and it strikes me that some are highly dynamic, while others seem never to change. Over the first few years of this century, it seems to me that there has been significant movement in social media/networking, internet technologies in general, online vs offline media, SaaS, and even software in general. Some of these changes have even affected the underlying processes they arose from, by making some old functions obsolete. So, why hasn't this same set of change come to the world of EDI?

I posed this question to the ec-bp LinkedIN group a couple weeks ago, and was surprised at the responses I received. Actually, from the responses, I realized that I had posed the question poorly. The respondents commented that their own jobs in the EDI field were almost never 'boring', because there were always changes that needed to be made and problems to be fixed. But that wasn't my intended question. To those responses, I posted this followup question:

"New software and services are created all the time for different industries and niches. With the overwhelming volume of traction that EDI has, why (or is there) aren't there any new developments being introduced? If there are any, why don't we hear about them?"

I received one thoughtful answer from Craig Dunham, EDI Coordinator/System Analyst at Big 5 Sporting Goods, who put it this way:

"Well, given that different spin - on developments to EDI - we have to remember that EDI is .. a process .. not an application - software - or a service. It's a process.

And on that front - there are regular updates and developments... X12 comes out with new versions of their EDI standards. Documents are changed, deleted, modified... Data segments and elements are changed or altered.

On the "service" side of the process, EDI providers - whether a traditional VAN or network or a provider of SaaS - are making changes and releasing new versions of their products and services that "do" EDI. Inovis has a recent release of 6.2.1 (?) of their Trusted Link i-Series application. I'm sure that SPS Commerce and DI Central and all the other SaaS providers are making updates and upgrades to their applications. Same can probably be said of Gentran and GIS.

So with that concept - of software and services - there is movement and gear turning in the EDI realm. But EDI itself is pretty static...

Think of it another way - there haven't been many advances in the world of newscasts in a while - you have a person sit at a desk and read the news in front of a camera... but the news still happens every day. And new versions of the broadcast show up every day."

Craig makes a good point about EDI being a process. But I've seen lots of processes change, mostly for the better, over the years. My impression is that what is required is a fundamental rethinking of the process itself, and an initiative to do more, and do it better, than it has been done by using the current process.

One example that comes to mind is data synchronization. The concept of making a single source of truth from the manufacturing process through the final point of sale is generally accepted as a worthwhile goal. Each participant along the way can identify specific advantages they can garner from the accomplishment. However, the practice of implementing such a worthy goal has proven to be painful to some segments of those participating. The linking and validating of the many disparate processes and systems that make up just the manufacturing process, can be daunting in its complexity, cost, and effort.

Is there a better way to accomplish the integration and synchronization needed to make the concept of data synchronization viable? That answer is beyond me... but probably not beyond some of you, who are dealing with the challenges of making things work better, faster, and with less manual intervention.

I'm interested in knowing what you think about innovation in the world of EDI. For that matter, take out the "EDI", and think more globally about the processes and data that connect to and from your EDI stream. What products and vendors are in good position to change the way things are done? Who would you call on to invest their resources in making your business less complex, and hopefully more profitable?

Let me know...
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Craig Dunham - Keep it Simple IP:12.3.250.161 | 2008-10-14 12:17:03
Craig

A couple of things come to my mind after reading your article.

1. Don't fix what's not broken.
2. KEEP IT SIMPLE!

EDI has changed, new versions with new fields, different field lengths or format changes. Remember Y2K and the CCYY date changes?

Let's keep cute out of EDI. You mention social media/networking, Internet. Talk about that and I'll point out that it has lowered office productivity. I see people glued to screens mesmerized by video this and music that, on-line games, you-tube, mySpace, Google earth, e-bay etc. and the billions of personal e-mails.
Oh did I mention Virus and spyware, thank you Internet!

Let's not forget the big thumbed Blackberry junkies.
They may be connected but they have no lives.

Look at websites, I waste more time trying to find information on websites. Keep it simple would be a big help here. Since when is a company's phone number such a secret? Since the advent of the website! Sorry but I'm 60 and actually remember "customer service".

Of course if we keep things simple what would happen to company's producing non-intuitive software products with poor documentation selling us training courses.

So I for one would not trade the simple yet wonderful EDI text document format. Why? It works!

John Poremba
EDI & Systems Manager
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