Module 5

1. Short Notes: M-commerce

ANS: M-commerce, or mobile commerce, is the buying and selling of goods and services
through wireless handheld devices such as smartphones and tablets. M-commerce is a form of e-
commerce that enables users to access online shopping platforms without the use of a desktop
computer.
M-commerce offers a number of benefits for both businesses and consumers, including:
 Convenience: M-commerce allows consumers to shop from anywhere, at any time.
 Speed: M-commerce transactions can be completed quickly and easily.
 Security: M-commerce payments can be made securely using mobile payment solutions.
 Personalization: M-commerce businesses can use data collected from mobile devices to
personalize their offerings to individual consumers.
Here are some examples of m-commerce:
 Buying a coffee from a mobile app
 Ordering food from a restaurant
 Paying for a taxi ride
 Buying a movie ticket
 Shopping for clothes
 Paying a bill
M-commerce is a convenient and efficient way to shop for goods and services. It is becoming
increasingly popular, and businesses that want to stay ahead of the competition should consider
adopting m-commerce solutions.

2. What are some of the criticisms of the use of Service Oriented Architecture (SOA).
ANS: Some criticisms of SOA depend on conflating SOA with Web services. For example,
some critics claim SOA results in the addition of XML layers, introducing XML parsing and
composition. In the absence of native or binary forms of remote procedure call (RPC),
applications could run more slowly and require more processing power, increasing costs.
Most implementations do incur these overheads, but SOA can be implemented using
technologies (for example, Java Business Integration (JBI), Windows Communication
Foundation (WCF) and data distribution service (DDS)) that do not depend on remote
procedure calls or translation through XML. At the same time, emerging open-source XML
parsing technologies (such as VTD-XML) and various XML-compatible binary formats
promise to significantly improve SOA performance.
Stateful services require both the consumer and the provider to share the same consumer-
specific context, which is either included in or referenced by messages exchanged
between the provider and the consumer. This constraint has the drawback that it could re-
duce the overall scalability of the service provider if the service-provider needs to retain
the shared context for each consumer. It also increases the coupling between a service
provider and a consumer and makes switching service providers more difficult. Ultimately,
some critics feel that SOA services are still too constrained by applications they represent.
Another concern relates to the ongoing evolution of WS-* standards and products (e. g.,
transaction, security), and SOA can thus introduce new risks unless properly managed
and estimated with additional budget and contingency for additional proof-of-concept work.
There has even been an attempt to parody the complexity and sometimes-oversold bene-
fits of SOA, in the form of a "SOA Facts" site that mimics the "Chuck Norris Facts" meme.
Some critics regard SOA as merely an obvious evolution of currently well-deployed archi-
tectures (open interfaces, etc.).
IT system designs sometimes overlook the desirability of modifying systems readily. Many
systems, including SOA-based systems, hard-code the operations, goods and services of
the organization, thus restricting their online service and business agility in the global mar-
ketplace.
The next step in the design process covers the definition of a service delivery platform
(SDP) and its implementation. In the SDP design phase one defines the business informa-
tion models, identity management, products, content, devices, and the end-user service
characteristics, as well as how agile the system is so that it can deal with the evolution of
the business and its customers.

Module 4
3. What are the different disadvantages of ERP
ANS: Enterprise resource planning (ERP) systems are software suites that integrate all aspects
of a business, such as accounting, manufacturing, sales, and customer service. ERP systems can
provide a number of benefits, such as increased efficiency, improved decision-making, and
reduced costs. However, there are also some disadvantages to consider before implementing an
ERP system.
Here are some of the disadvantages of ERP systems:
 High cost: ERP systems can be expensive to purchase and implement. The cost of an ERP
system can vary depending on the size and complexity of the business, as well as the
features and functionality of the system.
 Complex implementation: ERP systems can be complex to implement. The
implementation process can take months or even years, and it requires a significant
investment of time and resources.
 Data integration: ERP systems require the integration of data from multiple sources, such
as legacy systems, databases, and spreadsheets. This can be a complex and time-consuming
process, and it can be difficult to ensure that the data is accurate and complete.
 Training: ERP systems require training for employees who will be using the system. This
training can be expensive and time-consuming, and it can be difficult to ensure that all
employees are properly trained.
 Change management: ERP systems can require significant changes to the way a business
operates. This can be a challenge for businesses that are not prepared for change.

4. How should an enterprise judge whether or not to use an ERP software

ANS: When considering whether to use an ERP software, an enterprise should carefully
evaluate its specific needs, objectives, and resources. Here are some key factors to consider in
the decision-making process:

1. Business Needs and Goals: Assess the specific challenges and requirements of your
organization. Determine if an ERP system aligns with your business needs and goals.
Consider factors such as process automation, data integration, reporting capabilities,
scalability, and support for industry-specific functionalities.

2. Cost-Benefit Analysis: Evaluate the potential costs and benefits associated with
implementing an ERP system. Consider the upfront costs, including software licenses,
customization, implementation, training, and ongoing maintenance. Assess the potential
benefits such as improved operational efficiency, streamlined processes, enhanced decision-
making, and cost savings in the long run.

3. Industry Fit: Consider whether the ERP software is designed to meet the specific needs of
your industry. Some ERP systems offer industry-specific modules and functionalities that
can address unique requirements and compliance standards.

4. Scalability and Flexibility: Assess the scalability of the ERP software to accommodate the
growth and changing needs of your organization. Consider if the system can handle an
increasing number of users, transactions, locations, and business units. Evaluate the
flexibility of the software to accommodate customization and support unique business
processes.

5. Vendor Reputation and Support: Research the reputation and track record of the ERP
software vendor. Assess their level of customer support, maintenance services, and
 commitment to ongoing product development. Look for customer reviews, case studies, and
references to understand the experiences of other organizations using the software.

6. Integration Capabilities: Evaluate how well the ERP system integrates with your existing
software applications and databases. Assess whether it can seamlessly integrate with other
critical systems such as CRM, supply chain management, or e-commerce platforms to
ensure smooth data flow and process automation.

7. User Experience and Adoption: Consider the user-friendliness of the ERP software. Evaluate
the interface, ease of use, and training requirements. Engage key stakeholders and end-users
in the decision-making process to understand their needs and potential challenges in
adopting the new system.

8. Risk Assessment: Evaluate potential risks and challenges associated with implementing an
ERP system, such as system downtime, data migration issues, and disruption to ongoing
operations. Develop a risk mitigation plan to address these concerns and ensure a smooth
transition.

5. Give your arguments for the use of micro service architecture in the development of an ERP
software.
ANS: Microservices are a modern interpretation of service-oriented architectures used to build
distributed software systems. Services in a microservice architecture are processes that
communicate with each other over the network in order to fulfill a goal. These services use
technology agnostic protocols, which aid in encapsulating choice of language and frameworks,
making their choice a concern internal to the service. Microservices are a new realisation and
implementation approach to SOA, which have become popular since 2014 (and after the
introduction of DevOps), and which also emphasize continuous deployment and other agile
practices.
There is no single commonly agreed definition of microservices. The following characteristics
and principles can be found in the literature:
 fine-grained interfaces (to independently deployable services)
 business-driven development (e.g. domain-driven design)
 IDEAL cloud application architectures
 polyglot programming and persistence
 lightweight container deployment
 decentralized continuous delivery
 DevOps with holistic service monitoring.

6. Name some important modules in which an ERP’s functions can be categorized into
ANS: Considering the ERP modules- Human Resources, Inventory, Sales and marketing, Pur-
chase, Finance and Accounting, Customer Relationship management Supply Chain management. Il-
lustrate how these modules could be used in an enterprise related to a silicon fabrication facility.

• Human Resources: Keep track of the employees, their skills, joining dates, academic
and other achievements, hiring and firing of the employee, their leaves, etc.
• Inventory: Keep track of the materials to be used in the manufacture of silicon dyes.
Also, keeps track of the other office equipments like desktop computers.
• Finance and Accounting: Keeps track of the finance related matters. This includes
transactions resulting from sales and purchase, employee payroll.
• Sales and marketing: Used to keep track of data related to sale of the silicon dies
and subsequent chips prepared for the customer and the strategies related to retain
the existing pool of customers and attract new customers.
• Purchase: Keeps track of data related to purchase of materials required for fabrica-
tion of the silicon chips as well as other purchases related to the functioning of the
enterprise such as IT materials, office equipments, etc
• Customer Relationship Management: Keeps track of customer related aspects of
the enterprise. This includes customer grievance redressal, annual contracts, after
sales services, etc.
Supply Chain management: Ensures that the supply chain of chemicals and silicon ingots are not
interrupted and the chip fabrication process runs smoothly.

Module 2
7. How encryption is associated with the legal liability of Internet Service Providers for
transmission of information through its network. Discuss it in the context of the principle of
‘liable controller’
ANS: An ISP is legally liable for transmission of banned/illegal content by its client only if it
is actively monitoring the client’s content and knows that such content is being transmitted
through its network. Encryption allows the client to hide the content from intermediaries
(including the ISP) such that only the recepient can see it through decryption. Hence, the ISP not
being able to see the content is automatically deemed not legally liable in such cases.

8. Discuss the implementation of digital signatures using asymmetric encryption

ANS: The digital signature scheme is based on public key cryptography. The model of digital
signature scheme is depicted in the following illustration − The following points explain the
entire process in detail –
 Each person adopting this scheme has a public-private key pair.
 Generally, the key pairs used for encryption/decryption and signing/verifying are different. The
private key used for signing is referred to as the signature key and the public key as the
verification key.
 Signer feeds data to the hash function and generates hash of data.
 Hash value and signature key are then fed to the signature algorithm which produces the digital
signature on given hash. Signature is appended to the data and then both are sent to the verifier.
 Verifier feeds the digital signature and the verification key into the verification algorithm. The
verification algorithm gives some value as output.
 Verifier also runs same hash function on received data to generate hash value.
 For verification, this hash value and output of verification algorithm are compared. Based on
the comparison result, verifier decides whether the digital signature is valid.
 Since digital signature is created by ‘private’ key of signer and no one else can have this key;
the signer cannot repudiate signing the data in future.

9. List out the key requirements for safe e-payment/transactions

ANS: Safe e-payment/transactions require several key requirements to ensure secure and
reliable electronic transactions. Here are some essential requirements for safe e-payment:

 Confidentiality − Information should not be accessible to an unauthorized person. It should

not be intercepted during the transmission.
 Integrity − Information should not be altered during its transmission over the network.
 Availability − Information should be available wherever and whenever required within a time
limit specified.
 Authenticity − There should be a mechanism to authenticate a user before giving him/her an
access to the required information.
 Non-Reputability − It is the protection against the denial of order or denial of payment. Once a
sender sends a message, the sender should not be able to deny sending the message. Similarly,
the recipient of message should not be able to deny the receipt.
 Encryption − Information should be encrypted and decrypted only by an authorized user.
 Auditability − Data should be recorded in such a way that it can be audited for integrity
requirements.

10. Discuss the implementation of digital signatures in the process of authenticating a digital
document.
ANS: Digital signatures are the public-key primitives of message authentication. In the
physical world, it is common to use handwritten signatures on handwritten or typed messages.
They are used to bind signatory to the message. Similarly, a digital signature is a technique that
binds a person/entity to the digital data. This binding can be independently verified by receiver
as well as any third party. Digital signature is a cryptographic value that is calculated from the
data and a secret key known only by the signer. In real world, the receiver of message needs
assurance that the message belongs to the sender and he should not be able to repudiate the
origination of that message. This requirement is very crucial in business applications, since
likelihood of a dispute over exchanged data is very high.

The digital signature scheme is based on public key cryptography. The model of digital signature
scheme is depicted in the following illustration − The following points explain the entire process
in detail –
 Each person adopting this scheme has a public-private key pair.
 Generally, the key pairs used for encryption/decryption and signing/verifying are different. The
private key used for signing is referred to as the signature key and the public key as the
verification key.
 Signer feeds data to the hash function and generates hash of data.
 Hash value and signature key are then fed to the signature algorithm which produces the digital
signature on given hash. Signature is appended to the data and then both are sent to the verifier.
 Verifier feeds the digital signature and the verification key into the verification algorithm. The
verification algorithm gives some value as output.
 Verifier also runs same hash function on received data to generate hash value.
 For verification, this hash value and output of verification algorithm are compared. Based on
the comparison result, verifier decides whether the digital signature is valid.
 Since digital signature is created by ‘private’ key of signer and no one else can have this key;
the signer cannot repudiate signing the data in future.

11. Discuss the role of hierarchy in Certification Authority

ANS: With vast networks and requirements of global communications, it is practically not
feasible to have only one trusted CA from whom all users obtain their certificates. Secondly,
availability of only one CA may lead to difficulties if CA is compromised. In such case, the
hierarchical certification model is of interest since it allows public key certificates to be used in
environments where two communicating parties do not have trust relationships with the same
CA.
 The root CA is at the top of the CA hierarchy and the root CA's certificate is a self-signed
certificate.
 The CAs, which are directly subordinate to the root CA (For example, CA1 and CA2) have CA
certificates that are signed by the root CA.
 The CAs under the subordinate CAs in the hierarchy (For example, CA5 and CA6) have their
CA certificates signed by the higher-level subordinate CAs. Certificate authority (CA)
hierarchies are reflected in certificate chains. A certificate chain traces a path of certificates from
a branch in the hierarchy to the root of the hierarchy. The following illustration shows a CA
hierarchy with a certificate chain leading from an entity certificate through two subordinate CA
certificates (CA6 and CA3) to the CA certificate for the root CA.

12. Short notes: Electronic documents, Secure Electronic Transaction (SET), Public Key
Distribution
ANS: ELECTRONIC DOCUMENT:
An electronic document, also known as a digital document, refers to a file or
piece of information that is created, stored, and accessed in an electronic format. Here's a short
note on electronic documents:
1. Definition: An electronic document is a digital representation of information that can be
created, modified, stored, and transmitted using electronic devices and computer systems. It
can include various file types such as text documents, spreadsheets, presentations, images,
videos, and more.
2. Characteristics: Electronic documents possess several key characteristics. They are typically
stored in binary format, making them machine-readable. They can be easily copied,
duplicated, and distributed, enabling efficient sharing of information. Electronic documents
can also be searchable, allowing users to quickly locate specific content within the
document.
3. Advantages: Electronic documents offer several advantages over traditional paper-based
documents. They are easily searchable, enabling quick access to specific information.
Electronic documents can be shared electronically, reducing the need for physical
transportation or mailing. They can be accessed remotely, allowing users to collaborate and
work on documents simultaneously. Electronic documents also support version control,
enabling tracking of document revisions and maintaining a history of changes.

SET: Secure Electronic Transaction or SET is a system which ensures security and
integrity of electronic transactions done using credit cards in a scenario. SET is not some
system that enables payment but it is a security protocol applied on those payments. It uses
different encryption and hashing techniques to secure payments over internet done through
credit cards. SET protocol was supported in development by major organizations like Visa,
Mastercard, Microsoft which provided its Secure Transaction Technology (STT) and
NetScape which provided technology of Secure Socket Layer (SSL).
Requirements in SET :
SET protocol has some requirements to meet, some of the important requirements are :
 It has to provide mutual authentication i.e., customer (or cardholder) authentication by
confirming if the
customer is intended user or not and merchant authentication.
 It has to keep the PI (Payment Information) and OI (Order Information) confidential by
appropriate
encryptions.
 It has to be resistive against message modifications i.e., no changes should be allowed in
the content being
transmitted.
 SET also needs to provide interoperability and make use of best security mechanisms.

PUBLIC KEY DISTRIBUTION:

Public key distribution refers to the process of securely distributing public keys
in a cryptographic system. Public keys are an essential component of public key
cryptography, where different keys are used for encryption and decryption.
Here's a short note on public key distribution:
 1. Importance of Public Key Distribution: Public key distribution is crucial in establishing
secure communication and ensuring the confidentiality, integrity, and authenticity of data
exchanged between parties. It enables secure encryption of messages and the verification of
digital signatures.

2. Public Key Infrastructure (PKI): Public key distribution often relies on a Public Key
Infrastructure (PKI), which is a system that manages the creation, distribution, and
revocation of digital certificates. PKI involves Certification Authorities (CAs) that issue
digital certificates containing public keys and other relevant information about the entity.

3. Key Exchange Protocols: Public key distribution can also be achieved through secure key
exchange protocols. These protocols enable parties to exchange public keys securely during
the initial communication. Key exchange protocols, such as Diffie-Hellman or Elliptic
Curve Diffie-Hellman, facilitate the secure exchange of public keys without the need for a
trusted third party.

Secure and reliable public key distribution is essential to establish trust and enable secure
communication in various applications, including secure email, digital signatures, secure
web browsing, and e-commerce.

Module 1
13. What is the difference in the relation of trade cycle with EDI and E-markets component of e-
commerce.
ANS: The main difference between EDI and e-markets is that EDI is a technology that is used
to automate the exchange of data, while e-markets are online marketplaces where businesses can
buy and sell goods or services. EDI is typically used for regular, repeat transactions, while e-
markets are typically used for one-off or irregular transactions.
Here is a table that summarizes the key differences between EDI and e-markets:

Feature EDI E-markets

Type of
Data exchange Marketplace
technology

One-off or irregular
Typical use cases Regular, repeat transactions
transactions

Finds new suppliers, compares

Saves time and money, improves accuracy and
Benefits prices,
efficiency
places orders

Can be difficult to find

Can be expensive to implement, requires the right suppliers,
Drawbacks
specialized software prices may not be
as competitive

Ultimately, the best choice of technology for a particular business will depend on the specific
needs of the business. Businesses that need to automate regular, repeat transactions may find that
EDI is the best option. Businesses that need to find new suppliers, compare prices, and place
orders may find that e-markets are the best option.

14. Discuss in brief any four important documents used in EDI. How are each of these
documents related to the credit transaction trade cycle in a B2B transaction
ANS: Here are four important documents used in EDI:
1. Purchase Order (850): This document is used to request goods or services from a supplier. It
includes information such as the buyer's name, the supplier's name, the items being ordered,
the quantity of each item, and the price per item.

2. Purchase Order Acknowledgment (855): This document is sent by the supplier to the buyer
to confirm that the purchase order has been received. It includes information such as the
supplier's acceptance or rejection of the order, the expected delivery date, and any shipping
instructions.

3. Invoice (810): This document is sent by the supplier to the buyer to bill for the goods or
services that have been delivered. It includes information such as the buyer's name, the
supplier's name, the items that were delivered, the quantity of each item, the price per item,
and any taxes or shipping charges.

4. Payment Order (820): This document is sent by the buyer to the supplier to pay for the
goods or services that have been delivered. It includes information such as the buyer's name,
the supplier's name, the amount of the payment, and the payment method.

These documents are all related to the credit transaction trade cycle in a B2B transaction. The
purchase order is used to initiate the transaction, the purchase order acknowledgment confirms
that the order has been received, the invoice is used to bill for the goods or services, and the
payment order is used to pay for the goods or services.

15. Discuss any five advantages of using an EDI system using the example of the characteristics
of a digital document.
ANS: here are five advantages of using an EDI system using the example of the characteristics
of a digital document:

1. Accuracy: EDI eliminates the need for manual data entry, which can lead to errors. Digital
documents are also more secure than paper documents, which can be lost or damaged.
2. Speed: EDI can significantly speed up the processing of documents. For example, an EDI
invoice can be processed in minutes, compared to days or even weeks for a paper invoice.
3. Cost savings: EDI can save businesses money on printing, postage, and storage costs. It can
also reduce the need for staff to manually process documents.
4. Improved efficiency: EDI can help businesses to improve their efficiency by automating
many of the tasks involved in processing documents. This can free up staff to focus on other
tasks, such as customer service.
5. Compliance: EDI can help businesses to comply with government regulations. For
example, EDI can be used to transmit invoices and other documents that are required by law.

16. State any five advantages of using an EDI system

ANS: Reduction in data entry errors. − Chances of errors are much less while using a
computer for data entry.
Shorter processing life cycle − Orders can be processed as soon as they are entered into the
system. It reduces the processing time of the transfer documents.
Electronic form of data − It is quite easy to transfer or share the data, as it is present in
electronic format.
Reduction in paperwork − As a lot of paper documents are replaced with electronic
documents, there is a huge reduction in paperwork.
Cost Effective − As time is saved and orders are processed very effectively, EDI proves to be
highly cost effective.
Standard Means of communication − EDI enforces standards on the content of data and its
format which leads to clearer communication.

17. Discuss the association between B2B business model and a credit transaction trade cycle of
an inter-organisational transaction
ANS: The B2B (business-to-business) business model focuses on transactions and
interactions between businesses rather than between businesses and individual consumers. In the
context of a credit transaction trade cycle of an inter-organizational transaction, the B2B business
model plays a significant role.

18. Discuss some features though which B2B and B2C business models can be distinguished.
ANS:

19.

Summarize the important steps which is required for the working of a B2C business model
ANS: Here are the important steps required for the working of a B2C business model:
1. Identify your target market. Who are you selling to? What are their needs and wants?
 2. Develop a product or service that meets your target market's needs. Make sure your product
or service is high-quality and competitively priced.
3. Create a strong brand identity. Your brand should be memorable, unique, and relevant to
your target market.
4. Market your product or service effectively. Use a variety of marketing channels to reach
your target market, such as online advertising, social media, and public relations.
5. Provide excellent customer service. Make sure your customers are happy with their
purchase. This will encourage them to do business with you again in the future.
By following these steps, you can create a successful B2C business model.

20. What are the four basic categories in which a business model can be classified into.
ANS: Business models can be classified into four basic categories:
Business - to - Business
A website following the B2B business model sells its products to an intermediate buyer
who then sells the product to the final customer. As an example, a wholesaler places
an order from a company's website and after receiving the consignment, sells the
endproduct to the final customer who comes to buy the product at one of its retail
outlets.

Business - to - Consumer
A website following the B2C business model sells its products directly to a customer. A
customer can view the products shown on the website. The customer can choose a
product and order the same. The website will then send a notification to the business
organization via email and the organization will dispatch the product/goods to the
customer.

Consumer - to - Consumer
A website following the C2C business model helps consumers to sell their assets like
residential property, cars, motorcycles, etc., or rent a room by publishing their
information on the website. Website may or may not charge the consumer for its
services. Another consumer may opt to buy the product of the first customer by
viewing the post/advertisement on the website.
Consumer - to - Business
In this model, a consumer approaches a website showing multiple business
organizations for a particular service. The consumer places an estimate of amount
he/she wants to spend for a particular service. For example, the comparison of interest
rates of personal loan/car loan provided by various banks via websites. A business
organization who fulfills the consumer's requirement within the specified budget,
approaches the customer and provides its services.

21. Short notes: Internet commerce, Online banking, Electronic Data Interchange
ANS: INTERNET COMMERCE: Internet commerce, also known as e-commerce, is the
buying and selling of goods and services using the internet. It is a broad term that
encompasses a variety of different types of transactions, including:
 Business-to-business (B2B): This type of e-commerce involves businesses selling goods and
services to other businesses.
 Business-to-consumer (B2C): This type of e-commerce involves businesses selling goods
and services directly to consumers.
 Consumer-to-consumer (C2C): This type of e-commerce involves consumers selling goods
and services to other consumers.
 Consumer-to-business (C2B): This type of e-commerce involves consumers selling goods
and services to businesses.

ONLINE BANKING:
Online banking is a convenient way to manage your finances from anywhere with an
internet connection. You can view account balances, transfer money, pay bills, and more.
Most banks offer online banking, and it's usually free to sign up.
To get started with online banking, you'll need to create an account with your bank. Once
you have an account, you'll be able to log in to your bank's website or mobile app. You'll
need to enter your username and password to log in.
Once you're logged in, you'll be able to see your account balances and recent transactions.
You can also transfer money between accounts, pay bills, and more.
Online banking is a secure way to manage your finances. Your bank will use a variety of
security measures to protect your account, such as encryption and firewalls.
Here are some of the benefits of online banking:
 Convenience: You can manage your finances from anywhere with an internet connection.
 Security: Your bank will use a variety of security measures to protect your account.
 Cost-effectiveness: Online banking is usually free to sign up and use.

Here are some tips for using online banking safely:

 Use a strong password and don't share it with anyone.
  Be careful about clicking on links in emails or on websites.
 Keep your software up to date.
 Monitor your account for suspicious activity.
EDI: Electronic data interchange (EDI) is the most commonly used B2B e-commerce technology
today. It is the computer-to-computer exchange of businessdocuments, such as purchase orders and
invoices, in a standard electronic format between business partners. EDI is an electronic way of
transferring business documents in an organization internally, between its various departments or
externally with suppliers, customers, or any subsidiaries. In EDI, paper documents are replaced with
electronic documents such as word documents, spreadsheets, etc.
EDI Documents
Following are the few important documents used in EDI –
 Invoices  Purchase orders  Shipping Requests  Acknowledgement  Business
Correspondence letters  Financial information letters
Advantages of an EDI System
Following are the advantages of having an EDI system.
Reduction in data entry errors. − Chances of errors are much less while using a computer for
data entry.
Shorter processing life cycle − Orders can be processed as soon as they are entered into the
system. It reduces the processing time of the transfer documents.
Electronic form of data − It is quite easy to transfer or share the data, as it is present in
electronic format.
Reduction in paperwork − As a lot of paper documents are replaced with electronic
documents, there is a huge reduction in paperwork.
Cost Effective − As time is saved and orders are processed very effectively, EDI proves to be
highly cost effective.
Standard Means of communication − EDI enforces standards on the content of data and its
format which leads to clearer communication.