Assessing the Impact of XML/EDI with Real Option Valuation

von Dr. Shermin Voshmgir

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[1.] Svr/Fragment 044 10 - Diskussion
Zuletzt bearbeitet: 2020-02-05 15:29:53 [[Benutzer:|]]
Fragment, Gesichtet, KomplettPlagiat, SMWFragment, Schutzlevel sysop, Svr, Weitzel et al 2000

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Seite: 44, Zeilen: 10-21
Quelle: Weitzel et al 2000
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[Both the sending and receiving company gains the ability to fully control and audit the end-to-end business transaction,] yielding time advantages and supporting Just-in-time production.

While this is often true for large enterprises, there is another side to EDI. Presumably, nowadays only 2 - 5% of all companies who could benefit from EDI actually use it. Especially small and mid-sized enterprises often name the high costs of implementing and running EDI as dissuading factors, and a current empirical study found pressure from larger business partners to be among the main reasons for the implementation of EDI. Furthermore, many of today’s solutions are platform dependent, meaning additional investments in both, hardware and software. Thus, EDI is predominantly implemented by large firms, preventing the electronic processing of data flowing through entire supply chains in open networks. Generally speaking, traditional EDI lacks the flexibility and efficiency required for state of the art electronic business.

Hailed as a strategic competitive advantage, a look at the literature paints EDI as the „killer application“ for B2B communication, promising cost reductions in the millions, yielding time advantages and supporting Just in Time production [6]. While this is often true for large enterprises, there is another side to EDI. Presumably, nowadays only 5% of all companies who could benefit from EDI actually use it [7]. Especially small and mid-sized enterprises (SMEs) often name the high costs of implementing and running EDI as dissuading factors, and a current empirical study found pressure from larger business partners (“gun-to-the-head-EDI”) to be among the main reasons for the implementation of EDI [10]. Furthermore, many of today’s solutions are platform dependent, meaning additional investments in both, hardware and software. Thus, EDI is predominantly implemented by large firms, preventing the electronic processing of data flowing through entire supply chains in open networks. Generally speaking, traditional EDI lacks the flexibility and efficiency required for state of the art electronic business.

[6] Emmelhainz, M.: (1993): EDI – A Total Management Guide, 2nd edition, New York

[7] Segev, A./Porra, J./Roldan, M. (1997): Internet-based EDI Strategy, Working Paper 10-21, Fisher Center of Management and Information Technology, University of California Berkeley; http://haas.berkeley.edu/~citm/wp-1021.pdf

[10] Westarp, F. v./Weitzel, T./Buxmann, P./König, W.(1999): The Status Quo and the Future of EDI, in: Proceedings of the 1999 European Conference on Information Systems (ECIS’99)

Anmerkungen

No source is given.

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