Remember the early days of the Internet? When businesses were exploring how this new, decentralized network might help them make more money or save more money? Back then, EDI (electronic data interchange) was the technology of choice for companies to exchange business documents, like invoices, between them. Then, XML emerged, and people thought EDI was going to die a slow death. But as with all useful technology, it hasn’t died at all. In fact, billions of electronic transactions take place each year. It’s not surprising: EDI offers significant cost advantages over paper based transactions. In fact, the interesting thing about EDI is not that it’s become a footnote, but rather that the concept — now fueled by the cloud — can now benefit an enormous segment of businesses that previously avoided EDI because of high set up costs, and long time-to-value.
Cloud Transformed EDI
With cloud-based EDI, transactions are processed at cloud data centers that can be accessed on-demand and require minimal groundwork. This relieves businesses of the several hassles of setting it up. They can quickly become compliant and can easily collaborate with their trading partners. No surprise then that cloud-based implementations are experiencing a growth rate of about 50% per annum.
Still, adoption has so far been patchy in emerging markets, despite an e-commerce boom. Cloud-based EDI will provide ecommerce firms to gain the agility and supply chain synergies required to scale operations quickly. Check out this video about how Cognizant can help businesses take advantage of cloud for Electronic Data Interchange as well as other applications.