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Electronic Data Exchange

The document discusses applying electronic data interchange (EDI) technology to the operations of construction companies MT Construction and MT Fidias. It currently uses a computerized system for materials management but needs improved infrastructure for ordering materials efficiently from domestic and international suppliers in a timely manner. The document analyzes using EDI to automate commercial transactions electronically and replacing the current manual exchange of documents. It considers two potential solutions: implementing a new system with an autonomous server, or upgrading the existing materials management system to incorporate EDI.

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Manuel Zaro
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0% found this document useful (0 votes)
160 views30 pages

Electronic Data Exchange

The document discusses applying electronic data interchange (EDI) technology to the operations of construction companies MT Construction and MT Fidias. It currently uses a computerized system for materials management but needs improved infrastructure for ordering materials efficiently from domestic and international suppliers in a timely manner. The document analyzes using EDI to automate commercial transactions electronically and replacing the current manual exchange of documents. It considers two potential solutions: implementing a new system with an autonomous server, or upgrading the existing materials management system to incorporate EDI.

Uploaded by

Manuel Zaro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Application of Electronic Data Interchange (EDI) MT construction & MT fidias

Information Systems for Business Strategy

Individual Project
Application of Electronic Data Exchange
(EDI)
Name: Emmanouil N. ZAROGIANNOPOULOS

declare that this assignment is based on my own work and


that all material previously or published in any source by any
other person has been duly acknowledged in the assignment.
Signed:

Professor: Dr. Andreou

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

"One of the greatest challenges for IT decision-makers has


been determining what new technologies to embrace, and when.
Enterprises are faced with a series of important decisions on
factors such as frameworks-oriented data-center stacks,
development and management tools, use of Linux and opensource server components, and the benefits of grid computing and
networked storage. As they grapple with these decisions, an
embrace of interoperability technologies and expertise will benefit
them in the short, medium and long terms, and will make the
migration from current systems to advanced architectures swifter
and easier. "
Dana Gardner (December 2003)1

The Yankee Group (2003)

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

INDEX
1. PRESENT SITUATION

2. PROBLEM

3. DEFINITIONS/TERMS-CONDITIONS

A. DEFINITIONS/TERMS

B.

CONDITIONS ................................................................ 7

4. FACTORS

A.

FACTS.......................................................................... 7
B. ASCERTAINMENT ........................................................... 9
C. CRITERIA ........................................................................ 9
5. ANALYSIS
A.
B.

10

EDI OPERATION ...........................................................10


CHANGES REQUIRED IN THE WORK FLOW ..........................16

6. POTENTIAL SOLUTIONS REPORT

21

A.

FIRST SOLUTION: REQUIREMENTS OF SYSTEM WITH AUTONOMOUS


SERVER. ............................................................................21
B. SECOND SOLUTION: EDI UPGRADE OF THE EXISTED CSMFU...........26
7. POTENTIAL SOLUTIONS TRIAL- CHOICE

26

8. CONCLUSION PROPOSALS

28

ANNEX: TABLE OF TRIAL OF SOLUTIONS

29

INFORMATION SOURCES

30

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

1.

PRESENT SITUATION

The Group of companies MT Construction & MT Fidias, is


activated in the area of constructions, undertaking a variety of
different projects as far as both the nature and the geographical
area are concerned. The Group, in order to secure the ability to
materialise the work according to the proper specifications but
also inside the forecasted timetables, has its own inventory of
various equipment, both conventional as well as those of special
use (heavy vehicles, cranes, deposits building) and other materials
etc.
However, further than all the above, a permanent, direct
and irreproachable collaboration with various institutions
(constructional companies, consultants of machineries, equipment,
vehicles, parts, industrial tools, etc.) is required. This requirement
cannot be ensured without the proper infrastructure and the
establishment of such procedures that the direct and in due-time
order and receipt of materials, is achieved with the minimum cost.

2.

PROBLEM

The examination of expediency for the use of EDI technology


for the realization of commercial transactions with both domestic
and foreign companies and, the choice of the most prosperous
way of application.

3.

DEFINITIONS/TERMS-CONDITIONS
a.

DEFINITIONS/TERMS

CSMFU: Computerized System of


Follow-Up of companies MT construction and MT Fidias.

Material

CS CSMFU: Computer System of CSMFU.

HARDWARE: Electronic equipment

SOFTWARE: Applications - Programs.

SERVER:
Calculating
machine
specifications that executes concrete operations.

of

high

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

TERMINAL
STATION
or
WORKSTATION:
Calculating system of potentially low specifications providing,
registering and storing data.

INFORMATION SYSTEM: A system capable to


explore, store, restore and process data in order to support
services of an organization.

INTERNET: The total of calculating machines


(computer systems) that are interconnected world-wide.

DOMAIN: A unique name in the Internet that is


used by the service of its routing.

INTERNET ADDRESS: Unique address in the


form of www.domain.countrycode (i.e. www.mtconstruction.gr).

WEB PAGE: A document with concrete address


which is accessible via Internet.
computer.

E-MAIL: The dispatch of text and data / files via

E-MAIL ADDRESS: Unique per user address in


the form of name@.domain.countrycode that determines the
letterbox of a user.

E-MAIL ACCOUNT: The letter box


corresponds to the address of electronic post of a user.

that

ELECTRONIC DATA INTERCHANGE - EDI: This is


the exchange of information with electronic means between two
collaborated enterprises or institutions without any human
interference.

ELECTRONIC
TRADE
(E-COMMERCE):
The
implementation of all processes required for the conduct of
commercial transactions via Internet. EDI constitutes one of the
technologies that are required for the realisation of electronic
trade.

TRANSACTION: The basic unit of information


that is transmitted (exchanged) between two computer systems
via EDI.

TRANSACTION SET: A group of transactions for


massive procession.

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

MESSAGE: A Transaction set in its final form,


which is to say as it is finally transmitted from one computer
system to another.

FORMAT: Strict standardization of type and


order of information in a file.

ELECTRONIC DOCUMENT: The electronic form of


conventional document.

ELECTRONIC DOCUMENT AUTHENTICATION: The


certification of authenticity of electronic document. The most
widespread method is the electronic signature.

ASCII (AMERICAN STANDARD CODE FOR


INFORMATION INTERCHANGE) FORMAT: Worldwide acceptable
format for the exchange of files with readable characters (letters,
numbers, points of punctuation etc.).

TRANSLATOR: An application that allows the


transformation / recomposition of data from one format to
another.

FIREWALL: A program that deters the access of


calculating system from non-permitted users.

BPS: Bits per second. It stands as the unit of


speed of exchange of information (1 bit is the elementary
electronic signal that is used for the shaping of characters - a
character - byte - is composed by 8 bits).

DIAL UP LINE: Connection of a computer to the


Internet via conventional telephone lines. It allows speeds up to
56000 bps.

ISDN LINE: Connection of a computer to the


Internet via digital telephone lines of new generation. It allows
speeds up to the 128000 bps and simultaneous operation of many
appliances.

Value Added Networks: Special networks of


computers for the exchange of information between enterprises.

IT terminology Guide

www.businesslink.gov.uk It will help you to talk with IT technicians, support staff and
developers about your requirements for new systems. Understanding the jargon will help
you identify what you want IT to do for you, plan your resources and purchase the right
equipment for your business needs. Subjects covered in this guide (www.businesslink.gov.uk):
2

Introduction, IT terminology (A-N), IT terminology (O-Z)

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

b.

CONDITIONS

(1) The CSMFU will continue supporting the


computerized operations and maintain its classified character as
well as its autonomy (self-reliance).
(2) A suitable institutional frame with regard to the
documents in their electronic form and the electronic signature will
be adopted.

4.

FACTORS
a.

FACTS

(1) Contribution
companies Work:

of

Supplies

department

in

the

Supply constitutes one of the most basic sectors


of Administrative Concern and has a direct and into a large extent
impact on the operational work of the companies. Accordingly, the
direct and equitable provision of essential information has
fundamental contribution in the effective administration and
management of material in each level of administration, and
finally in the success of the total work.
(2)

Contribution of CSMFU in the work of Supply:

The achievement of the mission of the


department of Supply is supported to a large extent from the
Computer System of Material Follow-up (CSMFU), which
constitutes the fundamental data management system. This
system provides increased capabilities of data storage and
process.
(3)

Collaboration with commercial houses:

For the achievement of the work of Supply, it is


required the collaboration with both domestic and international
parties (institutions), which provide their products and services for
the support/maintenance of machinery, equipment, appliances,

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

instruments and generally systems and facilities, as well as the


supply
of raw material, semi-furnished products and
miscellaneous material needed in general.
(4)

Exchange of information:

Commercial collaboration requires the exchange


of information between MT construction - MT Fidias and other
companies, collaborators, subcontractors, suppliers etc, a need
which today is covered by the syntax of documents which are sent
via the system of conventional correspondence or fax machines.
(5) Electronic exchange of data (Electronic Data
Interchange - EDI):
The increase of calculating force in conjunction
with the interconnection of computers worldwide, made feasible
the electronic exchange of data. The electronic exchange of data
allows the automation of commercial transactions.
(6) Electronic Exchange of Data constitutes the new
framework of Electronic Trade (e-commerce), which is
progressively applied by all the enterprises and the public
services. Particularly in the international trade, a lot of
enterprises, as well as governments, consider the capability of
electronic exchange of data conditional for any commercial
collaboration:
(a) The USA Ministry of Defence, since 1997,
has declared as condition for the realisation of commercial
transactions with its suppliers the utilisation of EDI technology.
(b) The European Community has placed as
objective the concretisation of 40% of supplies of State up to 2005
with the use of EDI technology and its graduated extension in the
future.
(7)

Electronic post (e-mail):

An operation that is unbreakably connected with


EDI is the Electronic Post (e-mail) that gives the possibility of
direct transfer of messages from one computer to another.

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

(8)

Internet:

Internet, besides others, provides the required


infrastructure for the exchange of information between computer
systems in the entire world with minimal cost.

b.

ASCERTAINMENT

By the analysis of all the above factors the following


ascertainment are resulted:
(1) The adoption of electronic exchange of data with
continental and overseas Commercial Houses is considered a
necessity which the computer system of Supply should develop in
order to achieve the full exploitation of the capabilities offered by
the new technologies.
(2) The already existing CSMFU has the capability of
extending itself with the functionality that is required for the
electronic exchange of data.

c.

Criteria
(1)

Basic

1B: The safety of CSMFU database must


be ensured, from hacking actions (viruses, access and alteration of
data from unauthorised persons).

2B: The software that will be used for the


transformation of data must has suitable format according to the
models which already are being used, in order to ensure the safe
import and export of data in the information systems that are
used.

3B: The possibility of communication of


users via E-mail must be provided effectively.
(2)

Desirable

1E: High speed of correspondence.

2E: Immediate update of CSMFU database.

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

CSMFU.

3E: Limitations of repercussions in the

4E: Implementation in short timeframe.

5E: Capability of internet access must be


wide within the company.

6E: The independence of growth and selfreliance must be ensured.

5.

ANALYSIS

On the purpose of analysis of the problem, the operation of


EDI and the respective changes required on the work-flow will be
examined, as follows:

a.

EDI OPERATION

(1) For the implementation of electronic data


interchange (EDI) the information (data) is transformed in suitable
format and is divided in subsets which are named messages or
transactions sets, each one of which corresponds to standardised
documents, such as the Purchase Orders and the Customer
Invoices. The EDI messages can completely replace the
documents, thus automating the processes which are nowadays
required for most of the commercial transactions.
(2) The specific difference between EDI and the
electronic mail lies in the fact that the messages have not been
shaped for their easy treatment by human resources, but by
computer resources. Substantially, the messages of EDI are much
more compact in size, have concrete configuration and contain
predetermined information.
Basic Description of EDI Operation
(3) In its (EDIs) most widespread form, five phases
are distinguished during the realisation of a transaction via EDI.
(a) Preparation of electronic documents: In
the first phase, the data needed for the determination of the

10

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

transaction content are collected by the institution - customer. If it


is about the submission of an order, then all the essential
elements are exported (Serial Number, Part Number, code of
constructor, required quantity and the commercial house to whom
it will be submitted), for which the already existing infrastructure
is used. The main difference lies in the fact, that the data are not
printed out in their original form, but on the contrary are
assembled and stored in electronic form.
(b) Preparation of exterior transmission: The
data that have been assembled in the previous phase are
transformed by suitable software into the predetermined form
(format). Transactions are grouped per supplier and, for each
supplier, a set of transactions, in the form of a file, is produced.
(c)
Transmission of Files: The produced sets of
transactions are transported via networks of computers to the
suppliers. The transmission of files can be realised with various
ways that will be mentioned in paragraphs 5a(7)(8)(9).
(d) Translation: After the reception of files
from the suppliers, the reverse process is taking place. That
means, recuperation of data is performed from the set of
transactions in a form that will be recognised by the computer
system which is used.
(e) Data Process: The data which are included
in the set are imported in this phase into the suppliers system.
Moreover, the constructor produces a respective set of
transactions which confirm the reception of the order and provide
the data, such as the estimated date of satisfaction, final price etc.
The set is afterwards sent to the customer for registration and
update of his own internal system.
Existing EDI Model (Standards)
(4) An essential condition as it was reported in
paragraph 5a(1) for the exchange of information between the
involved institutions, is the existence of a standardised dataformat. By the term format we mean the drawing of data and the
mapping of information in concrete codes.
(5) It is obvious, that the agreement between an
institution and a supplier to a certain concrete format does not
mean that the same format will become acceptable from some

11

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

other supplier. The simultaneous use of many formats is feasible


but perfectly disadvantageous once it requires the existence of a
big number of translators, leading to excessively complicated
systems and dedication of many working hours for their
concretisation.
(6) This problem was recognized on time and in
order to be confronted models (standards), which describe a
concrete format, were developed. The widespread model is ASC
X12 which has been exported from the Institute of National
Standardisation of America and is used widely in the USA.
Corresponding models that have been developed by other
countries are the DIN (Germany), SITPRO (United Kingdom), the
SCC/jtc EDI (Canada), while a world initiative is under
development through the co-ordination of UN with the
appointment of EDIFACT model.
Hint Reference to Isodes EDI Solution components

EDI Solutions
EDI (electronic data interchange) is the direct, application-toapplication transmission of business documents such as purchase
orders, invoices and remittance advices. EDI is a critical
component of many e-commerce solutions. Isode does not provide
software to manage EDI formats or business integration, but does
provide components for transfer of EDI documents. Hereby,
Isode's EDI solution components are described.

EDI Transport

www.isode.com

12

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

EDI defines messages and rules for exchanging business


information. EDI requires a transport mechanism to exchange
messages, which can operate client/client, client/server or
server/server. X.400 is a common choice for transferring EDI
messages as it offers:

High reliability

Good audit logging, security and management

Two levels of end to end acknowledgement as standard


features

Can build store and forward networks


configurations, including mesh and star

in

desired

The above diagram shows how Isode's server products can be


used to build an X.400 EDI infrastructure which enables the
exchange of EDI messages. The two core Isode products used to
provide this service are:

M-Switch X.400 is a high performance X.400 MTA (Message


Transfer Agent), suitable for high volume backbone
operation. M-Switch X.400 provides a flexible, secure and
robust MTA solution.

M-Store X.400 is an X.400 Message Store supporting client


access using the X.400 P7 protocol, and accepting messages
from an MTA using X.400 P3.

EDI Application Integration

EDI applications need to be adapted to use the underlying


infrastructure. Isode provides an EDI Client API product, which is a
cross-platform simple API, which enable an EDI application to
operate over either a P3 or P7 connection. This API is ideal for
applications and special purpose clients that require to be

13

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

connected to an X.400
intervening software.

infrastructure

with

minimum

of

EDI - X.400/Internet Conversion

EDI is often operated over the Internet using SMTP (Simple


Mail Transfer Protocol). This can lead to a requirement to convert
between EDI/X.400 and Internet Mail. The MIXER specifications
are a good basis to achieve this. Isode offers a solution for this
with its M-Switch MIXER product. This provides a flexible mapping
between MMHS and Internet Email, including full directory based
configuration of the mappings. M-Switch MIXER also includes
flexible authorization, which can control use of the MIXER gateway
and control who can send messages.
In some situations this mapping is sufficient. Where
additional mapping is needed, such as conversion to XML formats,
Isode's products provide a good framework for building such a
solution.
Transport of EDI Data
(7) The major problem in the concretisation of EDI is
presented in the natural transmission of information between the
involved institutions. In its initial form, communication was
realised with the point to point communication between the
institutions via terminal and leased telephone lines.
(8) The high cost of communication with leased lines
and the need of interconnection of big number of institutions and
companies as well as the increased requirements for safety, led to
the operation of specialised networks, which are known as VALUE
Added Networks or VAN and attend to the secure stay of data
between the ones involved with low cost. However, the maturation
of services provided by the Internet, the increased safety that is
ensured with the use of dissimulation (encryption) and the
disposal of tools that allow the projection of information from
database systems but also the forwarding of information to the
database systems, provide the required frame and infrastructure

14

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

for the concretisation of EDI systems in the internet. It is pointed


out, that the use of Internet rendered possible the attendance
within the EDI of small scale enterprises, while the cost of
operation is exceptionally low. A more general and common frame
of work for the concretisation of EDI systems via the Internet is
described in the EDIINT model, which certifies also the
authenticity and the safe EDI transactions via the Internet.
(9) In its simplest form, EDI can be realised with the
exploitation of services of E-mail and the use of encryption
systems which are incorporated in the applications of electronic
mail or sold separately. For small number of suppliers, this
solution functions satisfactorily, while direct access to the
calculating systems that are used internally in the enterprises, is
avoided.
Implementation of EDI Systems in Other Institutions
(10) The developments in the state supplies, in the
frame of EC, and the activation of Ministry of Growth/General
Secretariat of Trade, constitute elements that we must not ignore
bearing in mind the designing of our future actions with regard to
the evolution of our informative systems.
(11) To begin with, the European Committee
promotes regulations which dictate for the next years the
concretisation of big part of state supplies, electronically. This rule
aims in transparency but also in the access of European
enterprises to the public competitions of countries members of EC.
(12) In this frame the General Secretariat of the
Ministry for the Trade - in leadership of which a team of professors
of Universities has been placed - has begun the concretisation of
an ambitious program, and has already extracted the best
criticism for the progress that has been conducted in European
level. The specifications of the new system, which will aim at the
coverage of all the field of supplies for the Public Services, no
matter if they are materialised by the Ministry of Growth or by
their individual institutions, starting from the budget, the
specifications of materials, even the electronic realisation of
competitions, functioning either as coordinator for the institutions
that will have computer system autonomy or as provider of
services of electronic trade, for the institutions that will not have.

15

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

b.

CHANGES REQUIRED in the WORK FLOW

(1) It is a general observation that the big volume of


work of the personnel within the department of Supply concerns
certain activities, which require the syntax of standardised
documents. Indicatively, the following actions are reported:

Reception of offers for supply of materials


from domestic and international Houses.

international Houses.

Placement

of

orders

to

domestic

and

Registration of Estimated Delivery Date.

Precipitations of Orders.

Reception of offers for repair of materials


from domestic and international Houses.

Placement of
domestic and international Houses.

commands

of

repair

to

Registration of Return Orders of repairable


material (Estimated Delivery Date).
material.

Precipitations of attribution of repaired

(2) For the realisation of the following actions, it is


required that each company will be acknowledged with certain
information per transaction (material recognition data, quantities,
priority etc.). The data are exported from the demands that are
forwarded via the CSMFU.
(3) Respective information (data) is attributed by
the company (cost of acquisition /repair of materials, time of
delivery etc.) and transactions which forward the data to the
system consequencing its database update should be done.
Work-Flow in the Current System
(4) The transport of information until today is
realised via the exploitation of human resources and it has the
form of correspondence, which is being conducted by various ways
(fax, conventional correspondence, electronic correspondence).

16

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

The staff officers export elements from the CSMFU, draw up via
suitable software the proper documents, which are further handled
by/and via the secretariat.
(5) The reverse action takes place via the incoming
correspondence and the new information is registered into the
system so as the CSMFU database will be updated.
(6) The total procedure is schematically displayed in
the following picture.

Correspondence

Companies
Enterprises
Houses

Mail Room

Fax -

Fax - telephone

Supply

Termin
al

Terminal

Department

Database

Information System

17

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

Ascertainments
(7)

From the above we realise the following:

(a) The present practice requires human


resources for the implementation of standardised work, which due
to its repetitive nature can be automated to a large extent.
(b) Due to the repetitive and absolutely
unchangeable nature of work the personnel is lead to loss of
interest.
(c)
The permanent registration of data is
required, while simultaneously the human factor fault always
exists.
(d) The Data Base of CSMFU is not
automatically (immediately) updated due to delays in the
distribution of correspondence and the registration of information
(data registration).
(e) The storage of big number of documents in
the limited spaces of offices is required, while the search of
information (data exploration) from older cases is very timeconsuming.
(f)
Year by year, we are facing an explosion of
requirements as the result of business enlargement (undertaking
more, bigger and more complex projects), signing conventions of
continuous support/maintenance with standardised procedures.
Work-Flow with the Use of EDI
(8) The use of EDI technology alters considerably
the flow of work that is required for the realisation of commercial
transactions. In the new labour environment, the staff officers use
the terminal stations of the information systems in order to
prepare through suitable forms electronic publications of
documents. The system is then charged with the obligation to
categorize and transmit the information as well as to draw up the
final form of electronic documents in the way that was described
in paragraph 5a(7). This kind of process is of course not
perceptible by the user with the exception of cases of faults
when he/she is informed.

18

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

(9) In a respective way, the incoming data from the


information system are collected; the database is automatically
updated, without the need of any human intervention for most of
the activities and finally the persons responsible are informed.

(10) Simultaneously
for
simple
cases
of
communication (observations, resolution of problems during the
commercial transaction), the staff officer can communicate via
electronic mail with the respective operator in each house (Point of
Contact/Officer of Personal Responsibility POC/OPR) and the
official correspondence can be substantially
limited and used for more important subjects.

Companies
Enterprises
Houses

Database

Information System

Supplies
Department

Terminal
Station

Terminal
Station

(11) Picture of work-flow with the use of EDI


Advantages of the Use of EDI Technology
(12) The advantages which the incorporation of EDI
technology provides for the commercial transactions like the ones
our companies conduct in a daily basis in order to procure
materials,
arrange
maintenance
and
support
for
systems/equipment/facilities etc, and finally be able to operate
effectively, are the following:

19

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

(a) Increased performance: The increase of


speed by which the bureaucratic part of transactions is executed is
direct emanation of automation of process with the export and
import of data directly from the computer systems without any
human interference. Naturally the transport of information
becomes more rapid once it is being conducted via computer
networks.
(b) Precision: The restriction of human factor
in the processes minimises the problems which result from errors
at the preparation of documents, their transmission and the
import of data in the information systems involved.
(c)
Economy: The electronic transport of
information allows the saving of precious time which was spent in
the import of data and preparation of required documents.
Furthermore, the cost of transmission of information with
standardised methods is not negligible, when the volume is big.
(d) Simplicity: The required procedures are
limited to a large extent (most of the times the completion of one
simple format, is what is required for a transaction).
(e) Standardisation: The automation of
processes and the use of electronic documents/forms result in the
better standardization.
(f)
Improvement of conditions of work:
the volume of hard files traffic and storage is significantly
decreased making the decongestions of offices a fact.
(g) Minimisation of external work-load:
Finally, we must not forget that the use of EDI technology will to a
large extent decrease the pressure of work and particularly the
work-load for projects the concretisation of which requires
increased international transactions.
(h) Electronic Commerce: The concretisation
of an EDI system constitutes a step required for the future
concretisation of an Electronic Commerce system.
Disadvantages of the Use of EDI Technology
(13) Nevertheless, the application of EDI technology
in the processes of companies, will consequence the following:

20

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

(a) Cost
for
initial
investment
of
implementation: It is obvious that the concretisation of an EDI
system requires the disposal of budgets on the supply of essential
equipment and software. Besides, it is required the disposal of
additional budgets on the cover of communication needs, as the
existence of specialised personnel, which will be charged with the
operation and support of the system. It has to be mentioned that
the cost is smaller than the cost that is spent today for the cover
of telecommunication (for example: fax) and functional (for
example preparation - printing of documents) needs.
(b) Need of increased safety:
Basic
condition for the operation of EDI systems is the imposition of
effective rules/measures that will guarantee the unbreakable
safety of systems. This rules have to do both with the access limits
of computer systems, which should be limited and checked, and
with the transmission of messages, the content of which will be
supposed to remain unreachable from not permitted individuals.
The safety also concerns the guarantee of certification of
authenticity of electronic documents.

6.

Potential Solutions Report

Solutions which are pinpointed are the following two (2)


which will be analytically examined later on:
9
First solution (1S): the existence of an autonomous
server for the execution of required operations.
9
Second solution (2S): the extension of CSMFU for
the incorporation of required operations in the existing system.

a.
First Solution: Requirements of System
with Autonomous Server.
(1) For the establishment of such a system the
major requirement in regard to HARDWARE is a SERVER for which
from now on we are going to refer as EDI SERVER working
independently of CSMFU and will be of huge computing power.
This computer may be permanently connected to Internet via a

21

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

leased telephone line. Additionally, will have the capability to


communicate with CSMFU under the conditions that will be
described in following paragraph 6a(5). For the Internet
communication the use of 128000bps ISDN line is primarily
proposed due to the low cost. The use of a DIAL-UP line is
considered inadequate to cover our needs.
(2) In regard to software, the following applications,
which and are commercially available, are required:
(a) An operational system which would
provide advanced safety and stability regarding the operations
(Windows XP Professional, Unix)
(b) FIREWALL software for the protection of
system and its dissuasion of access from non-authorized persons.
(c)
Software that would allow the import of
information in predetermined format and its transformation in
accordance with the EDI models (forms) and the reverse process
with the support of ASC X12 and EDIFACT models. The same
software will arrange the transmission and the reception of
transactions via Internet following the specifications of EDIINT
model. A complete system of this form is called EDI system.
Indicatively, the ECXpert application from Netscape could be used
as a reference.
(d)
(e)
(Antivirus Software)

Server Software for Electronic Mail.


Programs which

protect from viruses

(3) Moreover the disposal of a DOMAIN is required


for use by CSMFU, which can be done as follows:
(a) The acquisition of an autonomous domain
for use by the department of supplies, in the form of www.
MTconstructionSupport.gr and with addresses of electronic post of
form Supportdpt @ MTconstructionSupport.gr
(b) The exploitation of existing companies
domain www. MTconstruction.gr with the use of redirection, so
that it acquires finally the form MTconstructionSupport.gr and
with
addresses
of
electronic
mail
in
the
form
Supportdpt@MTconstructionSupport.gr

22

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

(4)
The system, for safety reasons, will function
obligatorily in one of the two following modes:
(a) Internal operation mode: In this mode
exterior connection of EDI SERVER will be deactivated, but the
exchange of data with CSMFU will be available.
(b) External operation mode: On the
contrary, in this mode the exterior connection with the Internet
will be active, without this incurring any interruption in the
connection with the CSMFU.
(5) The functional procedure of EDI operation which
is described in paragraph 5a(3) is materialised with the following
way in the particular system:
(a) In Phase One, CSFU will collect all the
information required for the preparation of an EDI-transaction,
depending on the model that will be preferred, which will be stored
in suitably configured ASCII files. For the support of transactions
for which there is no respective function in the current CSMFU (i.e.
application of offer) the creation of respective formats will be
needed. In case this modification will be evaluated and judged as
exceptionally complicated, then the information will be given as
ASCII files which will be prepared directly by the users with a
process similar to the one that is followed for transaction sets in
the CSMFU, although this solution is not recommended.
(b) In the internal operation mode, the data
extracted from the CSMFU will be transmitted to the EDI SERVER.
The data will be given as entry in the translator, who will
undertake preparation of EDI-transaction sets. For the valid
transactions CSMFU will be informed, while the invalid ones will be
forwarded, in the form of files, back to the users for their review.
(c)
The EDI SERVER is then placed in external
operation mode, and processes the transaction sets, as well as the
reception of corresponding sets from the collaborating party
(companies, institutions etc.) via the EDI system in the form of
messages.
(d) Incoming
sets
are
decoded
and
restructured into predetermined ASCII format. The system is
placed again in internal operation mode for the transport and final

23

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

registration of the data in the CSMFU, where they will be available


to the users.
(e) The internal and external operation timeschedules can be concrete, even if due to the time difference (2
hours with France and 810 with America) the Internal operation
mode of the SERVER would be feasible during the morning hours
for the implementation of essential work from the personnel and in
external operation mode during afternoon, so that it will be
available for data reception.
(6) The EDI SERVER due to its connection to the
Internet can be charged with the function as an e-mail server in
order to provide e-mail services to every user of CSMFU. Each
user of CSMFU can have an e-mail address, depending on the
examples of paragraph 6a(3), which will be used in order to
regulate the existing e-mail management software (Outlook
Express) in the terminal stations. For each user an e-mail account
will be kept in the server, which will accept electronic messages
(e-mails) for every individual user, whenever the SERVER is in
external operation mode. A suitable program of protection from
viruses will be executed on permanent base for dissuasion of
pollution of systems and will be executed essentially before each
precession to internal operation mode. Besides, it will be supposed
under examination if it is desired - for safety reasons to restrict
the use of e-mail to limited messages only so that they only
include text. With the precession of system to internal operation
mode, when the connection between CSMFU and EDI server will
be activated, the transport of each users incoming messages
locally to the e-mail management software will be possible, as well
as, the respective transport of outgoing messages - for their
transmission - when the SERVER is operating in external mode.
(7) The autonomous SERVER has the future
capability of adapting additional software that is required for the
creation of web page and the precession into the new ECommerce frame of work.
(8) The process per operation mode is portrayed
schematically in the following page:

24

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

OPERATION MODES WITH AUTONOMOUS SERVER

External mode
Terminal
Stations

Processing

E-MAIL

EDI Server

EDI

Transactions

Companies
Enterprises
Houses

CSMFU
Terminal
Stations

Internal mode

E-MAIL

DATA
inputs

EDI Server

Processing

Companies

Enterprises
Houses

CSMFU

25

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

b.
Second Solution: EDI Upgrade of the
existed CSMFU
(1) The second solution is to upgrade CSMFU with
the proper libraries that provide the functionality described in
paragraph 5a(3), so that it will expand its capabilities keeping
pace with the operational models reported in paragraphs 5a(6)
and 5a(8). This solution will possibly require a lot of modifications
into the existing system and is not known if the required libraries
are commercially available or supposed to be developed for us.
Besides, the repercussion of the additional effort of the
incorporation of EDI technology into the existing system should be
taken under consideration.
(2) The most important repercussion that arises
from the concretisation of this particular solution lies on the
restriction that in order to be able to process the EDI transactions
and the e-mail messages either the central or the auxiliary CSMFU
SERVER will be supposed to be connected to the Internet for long
periods. For this reason beyond the FIREWALL protection of the
system the security demands are driving to the need of a
complete study by specialised personnel in order to guarantee the
safety of CSMFU and the authenticity of the transported electronic
documents.

7.

Potential Solutions Trial- Choice

The comparison of the two (2) potential solutions will be


carried out with the help of table of Annex "A":
a.
The first solution (1S) is tried for the basic and
desirable criteria:
(1)

Trial of solution 1S with the basic criteria:

(a) Criterion 1B is satisfied mainly with the


alterable operation in internal and external operation [paragraph
6a(4)] but also with the choice of the operational system, the
FIREWALL software and virus protection software [paragraph
6a(2)].
(b) Criterion
subparagraph 6a(2)(c).

2B

is

satisfied,

as

of

26

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

(c)
the paragraph 6a(3).
(2)

Criterion 3B is satisfied as it is explained in

Trial of 1L with the desirable criteria

(a) Criterion
1D
(high
speed
of
correspondence) is not satisfied because the alternation between
the two operations is interfered.
(b) Criterion 2D (direct update of CSMFU
database) is not satisfied because the alternation between the two
operations is interfered.
(c)
Criterion 3D is satisfied because the
autonomous SERVER operates independently of the CSMFU and
consequently is not overloaded.
(d) Criterion
4D
(short
concretization
timeframe) is satisfied because the application of 1L becomes
independent of the CSMFU operation.
(e) Criterion 5D is not ensured, because the
independent SERVER interrupts the direct communication of users
with internet.
(f)
Criterion
6D
is
satisfied
independence of growth and self-reliance are ensured.

because

b.
the second solution (2S) is tried as for the basic and
desirable criteria:
(1)

Trial of 2S with the basic criteria:

(a) Criterion 1B is not satisfied in the required


level with the use of firewall software and protection from viruses.
Accordingly the further examination of 2S is interrupted.
Choice of Better Solution
Only the 1S satisfies all the basic criteria.

27

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

8.

CONCLUSION PROPOSALS

CONCLUSION
The solution that is selected is the one with autonomous
server, (1S) which due to the alterability between internal and
external operation modes ensures independence from the CSMFU
and does not overload it, has short concretisation timeframe,
ensures self-reliance of concretisation and self-reliance of
operation and excludes the probability of infiltration in the CSMFU.
PROPOSALS
From the study of above elements, the following proposals
are made:
a.
The adoption of application of EDI technology in the
realisation of commercial transactions with domestic and
international Houses both continentally and overseas.
b.
The concretisation
autonomous server.

of

system

with

the

use

of

g.
The exploitation of the questioned server for the
benefit of e-mail services. The activation of e-mail can be applied
immediately for the internal users of CSMFU.
d.
For the confrontation of disadvantages (desirable
criteria that were not satisfied) it should on one hand to adopt a
frequent alternation from the one mode to the other and on the
other hand to give Internet access to the standalone PCs.
e.
The education of personnel in objects with regard to
the Internet and relevant to these technologies, in order to acquire
the required know-how, so that they will be capable to exploit and
maintain AN EDI system meaning that the companies will keep a
good degree of independence.
f.
The examination of the rest of technologies that are
required in order to begin in time and materealise smoothly the
adaptation of the existing frame of work in the new conditions
required for the realisation of Electronic Commerce.

28

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

ANNEX: TABLE of TRIAL of SOLUTIONS

Solutions:

Description of
Criterion
BASIC CRITERIA

Safety of CSMFU
database, from
scheming actions
Suitable format
according to the models
already in use
Possibility of users
communication via Email.

2
3

Autonomous
server for the
implementation of
required
operations

Expansion of
CSMFU for the
incorporation of
required operations
in the existing
system

It is satisfied

It is not satisfied

It is satisfied
It is satisfied

DESIRABLE CRITERIA
1
2
3
4
5
6

High speed of
correspondence
Direct CSMFU database
update
No repercussions
caused to CSMFU
Concretisation in short
timeframe
Internet access
capability
Ensured independence
of growth/upgrade and
self-reliance

It is not satisfied
It is not satisfied
It is satisfied
It is satisfied
It is not satisfied
It is satisfied

29

Application of Electronic Data Interchange (EDI) MT construction & MT fidias

Information Sources

www.isode.com
www.altova.com
www.webopedia.com
www.wpc-edi.com
www.intersystems.com
www.boomi.com
www.manumit-computers.com

30

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