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EDI Software

EDI software consists of computer instructions that translate the information from unstructured, company-specific format to the structured EDI format, and then communicate the EDI message from the sender to the recipient. 

EDI software also receives the message and translates from standard format to company-specific format. Thus the major functions of the EDI software are data conversion, data formatting and message communication. 

EDI software is available for mainframes, minicomputers and microcomputers. The requirements of EDI are: 
1) A computer  
2) A communication interface and  
3) Appropriate software

Layers in EDI Software 
Figure 2.18 displays the different layers in EDI software. These layers package the information and send it over the Value Added Network to the target business. The target business then reverses the process to obtain the original information. 
1) EDI Business Application Layer: The first step in the EDI process is to create a document in a software application, This software application then sends the document to an EDI translator, which automatically reformats the document into the agreed-on EDI standard. If these two pieces of software are from different vendors, it is important that the document preparation application integrates with the EDI translation software.

If both the EDI translator and the business application are on the same type of computer, the data will move faster and more easily form one computer to another. The translator creates and wraps the document in an electronic envelope that has a mailbox id for the company's trading partner. The EDI wrapper software can be a module to the translator, a programming tool to write to different communications protocols or a separate application.
 
2) EDI Translation Layer: Translation is an integral part of the overall EDI solution. The Translator describes the relationship between the data elements in the business application and the EDI standards. The translator ensures that the data is converted into a format that the trading partner can use. If EDI is done without translation, companies run a great risk of transmitting data that trading partners may not be able to read. Since the number of EDI translators available in the past was few, large companies wrote their own EDI translators. Custom translators have several disadvantages:
i) A custom translator is very restrictive. It is often designed for one trading partner and limited transaction sets.  
ii) A custom translator is difficult to update. If a trading partner changes standards or wants additional transaction sets, precious weeks or most can be wasted making the changes and then ensuring that everything works correctly.  
iii) A custom translator is unsupported. There is no one to turn to when help is needed. Providers of commercial EDI translators offer telephonic support trough industry experts.
 
3) EDI Communication Layer: The communications portion (which could be part of the translation software or a separate application), dials the phone number of the value-added network service provider or employs any other type of access method. The three different types of EDI access methods available are:
 
i) Direct Dial or Modem to Modem Connection: Direct dial systems are the simplest and most common. The user has direct access to the partner's modem and communicates by using the modem to dial the modem of the other party.  
 
ii) Limited Third-Party Value-Added Network (VAN) Services: A VAN (Value Added Network) is a communications network that typically exchanges EDI messages among trading partners. Limited VANS are regional and international communication services similar to those used with e-mail. It also provides other services, including holding messages in "electronic mailboxes" interfacing with other VANS and supporting many telecommunications modes and transfer protocols.
 
A VAN's electronic mailbox is a software feature into which a user deposits EDI transactions and then retrieves those messages when convenient. These VANS often provide only the very basic technical services such as protocol conversion and data error detection and correction, directing and delivering EDI traffic to buyers and sellers.
 
iii) Full-Service Third Party VANS: Full third-party services provide more that just communication between two or more parties. Electronic mailboxes and associated extra features are the heart of these third party services. Extra features include access control for security and document tracking, which allows users to track their own documents as they pass through the system.

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