EDI and ASC X12 – Get to the Basic of E commerce

EDI, in short for Electronic Data Interchange relates to the transfer of data between different endpoints via networks like VANs (Value Added Networks) or the Internet। Today with the colossal rise of internet as the medium of communication, more and more companies are getting linked to the thousands more with Internet। Rests are amassing technology and from every front are forming a common platform across the expanse of webography। Facilitated by Internet, EDI is becoming increasingly important as an easy mechanism for companies to buy, sell, and interchange invaluable trade information. ANSI (American National Standards Institute) has approved a set of EDI standards and chronicled them by the name of X12 standards. EDI forms the very basic of e commerce.

In simpler words, EDI is a technical representation of a business dialogue between two entities. With involvement of either of the internal or external forms, the interaction comprises of the entire electronic data interchange paradigm of transmission, message flow, document style, and software in use to interpret the documents.
For the purpose of safe and hassle-free use, an EDI process contains a set of methodologies recognized by the sender and recipient. A list of technologies that include modem (asynchronous, and bisynchronous), FTP, Email, HTTP, AS1, AS2, etc., populates the set of methodologies mutually agreed upon by the sender and the recipient. It is important to understand that while several non-internet transmission methods are being replaced by Internet Protocols such as FTP, telnet, and e-mail, EDI documents still remain unaffected and is increasingly being integrated into online business processes.

ASC X12 (also known as ANSI ASC X12) is the official designation awarded by U.S. national standards body for the development and maintenance of Electronic Data Interchange (EDI) standards. It is an official standards committee under the American National Standards Institute or ANSI. The acronym ANSI ASC X12 stands for ‘American National Standards Institute Accredited Standards Committee X12’.The designation of X12 is a sequential designator assigned by ANSI at the time of accreditation.

ASC X12 has sponsored more than three hundred of X12-based EDI standards. A growing collection of X12 XML schemas include the category of health care, insurance, government, transportation, finance, and many other industries. ASC X12's membership includes more than 3,000 standards experts, representing over 350 companies from different business domains.

Got a taste of EDI? Let’s get into e commerce and the fact behind the functioning of e commerce websites in the coming days.



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