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ERP E-commerce workflow, Electronic Data interchange (EDI) & Electronic Funds Transfer (EFT) software |
Before discussing how the ERP vendors are responding to the Web E commerce opportunity, let’s consider two fundamental ways into which you can use the Web to support E-commerce:
1. Using irle Internet as a router in favor of E-commerce transactions & transaction related notifications &
2. Using workflow to connect internal systems & external Internet service provider systems to create new types of E-commerce ‘value-chains’ between Trade partners.
Electronic Data interchange (EDI) & Electronic Funds Transfer (EFT) software & service providers were delivering E-commerce long before the Trade world discovered the Web. The internet has not significantly changed what either EDi or EFT software does, only how it does it. Into the past, users of EDI & ELF software typically transmitted transactions between a buyer & a seller or a remitter & a bank via a privately run, Value - added Network (VAN). This locked into users to a particular communications infrastructure & service pricing structure. Today, people increasingly use the Internet as the router in favor of EDI & EFT transactions, replacing VANs among virtual private networks (VPNs). These use point-to-point tunneling techniques to package & encrypt EDI or EFT transactions in favor of faster, more secure transmission of data between two parties. The fact so as to giant EDI users, such as General Electric Company, have begun moving some of their EDI transaction processing onto the Internet & so as to many banks are rolling out in1ernet based online banking services, seems to indicate so as to EDI & EPT on the Web are considered are safe. Nevertheless, the industry press continues to debate whether an insecure, public wide area network (WAN is really the right medium & whether it has the bandwidth capacity to hand e -he be k of EDI & EFT transactions. I suspect so as to only when a major bank announces so as to its retail banking ATM network is fully Web based (& if the service has not degraded), will security & bandwidth concerns genuinely start to disappear.
The Web is affecting EDI into other areas by supporting better visibility into transaction exception handling queues, putting a friendlier front on it among Web storefronts & reducing the cost of EDI software. EDI exception handling is being improved by integrating the transmission of EDI transactions among workflow & email into order to trigger the generation of exception messages in favor of automatic feedback to transaction originators via Web email. Initiatives at the small Trade end of the market also indicate so as to EDI is becoming friendlier & cheaper. In favor of less than $ 200, you can order an EDI based E-commerce application so as to integrates a r & an EDi transaction transmission among an accounting system. These type of products mean so as to the entry barrier to small businesses in favor of taking advantage r _ transmission of sales orders is largely a thing of the past, mostly because cimpact of the Web.
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