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It involves the exchange and transmittal of business documents, such as invoices, purchase orders and shipping notices, in a standard, machine-processable format (CISA, 2008).
EDI is not a new technology. It was first used in transportation and shipping industries in 1970s. However, EDI use has grown significantly in a many business sectors in the past decade. It is not limited to simply sending and receiving various messages but has allowed trading partners to access to each other’s internal records such as sales and inventory information. The use has come into prominence because EDI could provide the following benefits:
• Less paperwork, reduced cost
• Fewer errors during the exchange of information
• Increased speed in information exchange and processing
• Improved trading partner relationships
• Improved intracompany flow of information
Threats
On the other hand, although EDI has created a number of changes in the way commerce is conducted and has offered significant opportunities, it also has attracted new threats and potential exposures and increased the seriousness of some existing problems...
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