This post was updated to reflect current trends and information.

We compiled a shortlist of business technology terms that are useful to keep on hand when looking for software solutions for your business or when speaking with an IT Service Provider. Because, sometimes a short and simple definition is all you need, and that’s exactly what we have here.

“SOFTWARE” Terms

• ERP: Enterprise Resource Planning; a fully integrated business process management software suite. It allows users to view, manage and track core business processes and resources using one single database.

• CRM: Customer Relationship Management is a software system that allows your business to manage contacts, collaborate effectively, increase productivity & grow your business. It is based on the preservation and analysis of information to improve the marketing, service and business relations with your customers.

• BI: Business Intelligence; a performance optimization software that aims to produce detailed analyses with the help of customized drillable dashboards. BI provides immediate access to relevant and timely business information (through visualizations & reports)

• WMS: Warehouse Management System; a software application to manage warehouse operations (track inventory, shipping, receiving, stock locations, picking, etc.)

• eCommerce: Website used to make commercial transactions electronically over the Internet; in other words, an online store to sell products and services.

• eCommerce integration: is the synchronization of a company’s eCommerce website with its back-end accounting or ERP system.

• API: An application programming interface (API) is a set of subroutine definitions, protocols, and tools for building application software. In general terms, it is a set of clearly defined methods of communication between various software components.

• Implementation: The process of installing and configuring software; this phase includes many steps such as business process re-assessment, system testing, user-training and support.

• Integrated Software: A collection of computer programs (modules like accounting, purchases, sales, inventory management, sales forecasting, EDI & more) which share one database.

• IT Consulting: Consulting services provided by an outside organization/consultant to advise business executives or IT managers on appropriate strategies and solutions to bring efficiency into the company through technologies.

• Digital transformation (DT): Digital Transformation (DT) is the transformation of business by remodeling the business strategy or digital strategy, models, operations, products, marketing approach, objectives etc., by adopting digital technologies. This accelerate sales and growth of the business from end to end.

• Office automation: Office automation refers to the varied computer machinery and software used to digitally create, collect, store, manipulate, and relay office information needed for accomplishing basic tasks. Raw data storage, electronic transfer, and the management of electronic business information comprise the basic activities of an office automation system. Office automation helps in optimizing or automating existing office procedures.

• Artificial Intelligence (AI) Artificial intelligence (AI) is an area of computer science that emphasizes the creation of intelligent machines that work and react like humans. Some of the activities computers with artificial intelligence are designed for include speech recognition, learning, planning, and problem solving.

• Internet of Things (IoT) The Internet of Things (IoT) is the network of physical devices, vehicles, home appliances and other items connected to the internet, collecting and sharing data. An example of an Internet of Things device a lightbulb that can be switched on using a smartphone app is an IoT device.

• Industrial Internet of Things (IoT) The Industrial Internet of Things is a unified system of computer networks and production equipment with built-in sensors and software for collecting and exchanging data. This system has remote monitoring and control in automatic mode, without human intervention. Industrial Internet of Things allows creating industries that are more economical, flexible and efficient than existing ones.

“EDI” Terms

• EDI: Electronic Data Interchange; the secure process of electronically exchanging business documents, like Purchase Orders, Invoices, ASNs, (in a pre-defined format) between Trading Partners

• EDI Standard: EDI documents are sent using standard-specific formats, describing what each piece of information is; these standards avoid trading partners sending documents back and forth using company-specific formats. Common standards include: ANSI ASC X12 (North American Standard), EDIFACT (International standard)

• EDI Translation System: Software application used to translate the EDI format (into a format readable by humans and systems) so the data can be read and used by business people and processed by a company’s internal management system.

• Communication Protocol: Communication method used to transmit data to and from Trading Partners; FTP, sFTP, AS2, VAN, Https

• Point-to-Point: Direct Connectivity; rather than having documents pass through a VAN, Trading Partners can exchange documents directly through secured communication protocols like FTP, sFTP, AS2, Https, etc.

• VAN: Value Added Network; a private network provider to facilitate electronic data interchange for Trading Partners; considered the “EDI post office” for incoming & outgoing documents.

• AS2: Applicability Statement 2; A point-to-point connectivity method that sends messages across the internet using the HTTP or HTTPS protocol, with increased verification and security.

• Trading Partner: Participant in an ongoing business relationship

• XML Extensible Markup Language; a markup language used to describe data. This is typically the go-to in EDI translation, since it is a format that is human and system-readable

• Data Mapping: The method by which information in one format is restructured into a different format.

Introduction

The concept of Electronic Data Interchange (EDI) is still very abstract for a business owner up until today. More often, as soon as an SME (small to medium-size enterprise) is requested by an important partner to comply with electronic data interchange process or do EDI, everyone gets on a big pig panic inside the enterprise, and all reinforcements are being called to help with such project.

Why Integration projects are nightmare?

EDI Integration In fact, large chains are extremely important customers for many small and medium size enterprises. It is therefore essential, even vital, for many of them to follow the requirements imposed by those major retailers. Actually, all the large chains use mainly EDI format to exchange business transactions with their partners.

However, it can be risky for a company to embark on EDI integration without carefully evaluating business processes and needs.

Recommendations and steps for a successful integration

More than any other IT solution, EDI technology can profoundly modify several business processes of the company. EDI integration projects, must be planned and executed, according to a coherent process. Here are the different steps:

Step-1 Preparing of an EDI implementation team

It is essential that senior management be involved in any EDI integration project and implementation, at least at a high level.

Ideally, the EDI implementation team should include representatives from different departments, such as operations management, sales and information services.

It is important for the team to design together a good flow of information, so everyone understands the issues, the scope, and the benefits of the project. A project manager, should be assigned to take charge of such a mandate.

Step-2 Setting a project timeline

The implementation team should set and ETA and develop a plan with a complete list of tasks, resources required, and delivery estimates.

Step-3 Choice of standards

While the choice of standard of EDI format and communication protocols is very limited, this phase consists on just reviewing and making sure all specs and documentations are in place for the kick-off.

Step-4 Choice of documents for EDI transaction

Often, trading partners specify the EDI standard and the type of documents they will send or accept. Sometimes partners use only a few of the possible documents such an Invoice EDI 810 form and purchase orders EDI 850 form.

Step-5 “On premises” or “cloud” based or EDI Web Sevice?

There are many ways to do EDI. It is depending of the anticipated transaction volume, or the size of the business. Going with a software solution deployed “on-premises” or adopting a “cloud based software” or maybe EDI Web Service

♦ The Cloud-based EDI Service is an excellent solution for Small and Medium-sized enterprises that do not have a budget for large EDI projects, and who do not have experienced staff with EDI exchange.

Learn more about EDI Solution as a Service for SMEs

♦ The other way to get the most out of EDI, is by adopting a full EDI integration with your internal software management system like your ERP, CRM etc.

♦ EDI2XML Web Service, is for developers and businesses, interested in building their own EDI (Electronic Data Interchange) integration flows and programs. Normally, these individuals, are capable of interacting with external API and Web Services to translate EDI to XML and XML to EDI, and have the resources and expertise to work with Web Services and HTTP requests in order to achieve their goals. EDI2XML web service, is the premier choice for IT people as a reliable service to accomplish such integration projects.

Step-6 File Integration or direct system integration

When it comes to integration, the implementation should be decisive on how the integration to their CRM/ERP is going to happen: there are (2) methods to do such an integration; either through file integration, Where the ERP has already some built-in jobs to import data based on specific format, or direct integration. Obviously, this decision is also dependent on whether the software management system is a legacy system or a modern one, fully loaded with all kinds of API and programming interfaces. This part can be the most difficult and lengthy part, unlike what most people think…

Step-7 Integration project testing

Pilot projects are conducted both within the company and with external business partners. EDI test should be of a specified duration. They will help identify possible loopholes and establish a problem-solving plan. Technical employees should be trained in the technical aspects of EDI.

Step-8 Setting up

The implementation of the EDI system must be combined with several factors in order to be successful: adequate users training, proper implementation plan, and establishment of an emergency procedure.

For a small to medium-size enterprises, EDI integration is a good deal. An Electronic Data Interchange (EDI) capable enterprise retains an important customer or supplier and have a lot of opportunities to enter into new contracts with large companies.

For many years our EDI2XML service has been offering up-to-date integrated solutions at an affordable cost. We have been helping companies of all sizes, to optimize operations and improve their competitiveness.

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Business Tech Terms Definitions