Electronic data interchange is a low-cost, secure way to transfer sensitive information between two systems. It requires coordination, communication, and a dedicated team. The format and layout of the data must be identified and security protocols established. A file transfer site is commonly used for access and security.
Electronic data interchange is a tool used to facilitate the passage of data between two separate systems. There are several rules and protocols surrounding this type of data exchange that need to be coordinated in advance. The most common reason to set up an electronic data exchange is to provide a low-cost, secure way to deliver sensitive information to a customer or business partner. This type of data transfer is often found in banking, government, or other industries where a large amount of detail is required.
To create an electronic data exchange, the supplier and the recipient must communicate frequently. This type of project typically takes four to six weeks of dedicated effort from both parties to complete. Each party should create a project team that includes an experienced software developer or programmer who will receive or transmit the data file. Additionally, security or infrastructure personnel are often required to determine how information will be exchanged and what security protocols need to be in place, on both sides.
The first step in developing an electronic data interchange is to identify the format and layout of the file to be transmitted. This includes the exact data that will be provided in the file, the effective date and how often the file is sent. For example, a data file of books purchased by a library from a publisher should include the ID number, quantity, amount, currency, purchase date, customer account number, and a unique file identifier . The format can vary, but is often comma-separated values (CSV) or text (TXT).
Once the format is confirmed, the layout of the data needs to be reviewed. In an electronic data interchange, the file is typically uploaded directly to a computer system. You need a program to translate each column of data in the file into the correct field. This translation often takes a long time, especially for the first file. Once a pattern is established, the process moves much faster.
The security of the file and the access to the different systems is the next issue that needs to be addressed. This is most commonly achieved through setting up a file transfer or FTP site. This site is really just a network drive accessible via the Internet. A username and password are provided to the sender, who can then upload the file as required. The recipient is notified that a file is available and is then able to download the file from the site and upload it to the main system.
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