In the mid 90’s EDI was king when it came to B2B communication, but that technology was born before the internet boom and much like most other parts of life was due to be affected by the world wide web. If you were to listen to the pundits 10 years ago, EDI was on its last leg and was merely waiting for the final blow for an internet technology to replace the dinosaur.While we have changed the way we shop, watch TV, and obtain music because of the internet, EDI standards have not gone away but continue to be the standard used for integration. Now that it finally appears that the dust has started to settle with regards to XML full out replacing EDI standards such as ANSI X12 and EDIFACT, and a new era of technology coexistence is emerging. Through all the nay-sayers and death knells, EDI has survived the new kid on the block and instead of being replaced has found a great complimentary tool. Much like peanut butter and jelly both are adequate on their own, but put them together and you really have something special.
When I first heard rumblings of XML replacing EDI I must say that I was skeptical. Working then with a third party service provider that focused on the domestic gift industry, I simply saw too much invested in EDI translators and infrastructure to warrant a move. I honestly couldn’t see the difference between the two that would justify the ROI on transferring to another technology. As the years went on and EDI stayed in the forefront I was not surprised to see EDI remain a viable option, but was excited to see XML being used in conjunction to enhance the relationship between businesses.
As my experience grew in the E-Commerce realm, I was able to work on integration projects in other industries as well as other regions of the world and it seems that there are some consistencies in technology used loosely based on region. In the US and Canada, ANSI X12 is by far most adopted standard, so those businesses tend to remain with EDI on the most standard documents such as 850, 810 , 855, 856 etc.., and utilize XML for more specialized uses. Lately, I have started seeing requests from domestic companies wanting to continue EDI but setup XML transaction posts for inventory availability, and real time order tracking. I am seeing the same thing in Europe, but utilizing the EDIFACT or TRADACOMS standards.
The most intriguing area currently to me is the Asia Pac region. With the explosion of the Chinese economy, I am beginning to see a heavy interest in B2B integration in that part of the world. In the past year I have directed integration projects there that range from flat file to flat file, flat file to ANSI X12, and straight up XML exclusive relationships. Now that I have been in the EDI world for a bit of time I may dare to refer to myself as one of the aforementioned pundits that predicts heavy interest in utilizing standard processes found in internet technologies in Asia. The internet infrastructure is already present with a wealth of knowledge in that area, and for that reason I believe that XML emerge as the preferred protocol.
The advantages of both EDI and XML have been debated ad nauseam over the last decade, with the deciding factor seemingly being when the region adopted a form of B2B commerce. Where it doesn’t make sense for domestic companies to scrap their EDI program to go full XML, it is equally not reasonable to assume Asian entities will not leverage their current technical infrastructure and take advantage of XML. What this means in the world economy is that everyone is going to need to have the flexibility to accommodate multiple formats and delivery methods. Agility can become a part of a company’s competitive strategy, and in my opinion is directly related to the ability of the e-commerce department to meet the needs of the particular trading partner.
