EDI

The abbreviation for Electronic Data Interchange or Electronic Data Invoicing. The EDI system allows linked computers to conduct business transactions such as ordering and invoicing over telecommunications networks. The technology dates back to the 1970s when the first attempts at setting uniform standards commenced. However, EDI in telecommunications never lived up to its expectations largely due to high fees of Value Added Network (VAN) providers that, prior to the Internet usage, charged both monthly and transaction fees. In the late 1990s, EDI became less costly (as low as 10% of former VAN costs) when business applications exploded on the Internet and in intranets. The ultimate goal of EDI is to have standardized computer forms for business transactions and networking of nearly all aspects business transactions. This would greatly simplify use of networks to conduct business, accounting for transactions, and auditing. See "Intranets and Iternet: New Life for EDI," in Information Week, March 17, 1997, pp 65-67. Gradually EDI is being taken over by extranet networks on the Internet. See Extranet .