Levels of EDI Maturity |
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Companies tend to fall into one of three categories when working with EDI:
Level 1: Embryonic - This is a tactically oriented phase. This is where most organizations start. It primarily involves the acquisition of components and planning for implementation and deployment.
Two thirds of EDI implementations begin when a customer specifies a requirement to do EDI. Level 1 organizations are usually working with a small number of trading partners.
The need for EDI often originates from sales and/or marketing who have received a communication from a customer that says EDI is necessary to continue the business relationship. EDI often begins as a departmental level operation - they are simply reacting to a customer request and have a desire to keep a customer relationship alive.
This level is characterized by small investment, a high level of concern for keeping costs low, and speedy implementation.
Level 2: Growing - This is a strategic phase. It is at level 2 that the company decides to do EDI.
As volumes of EDI transactions increase, it becomes evident to company management that important production data is being handled by the EDI systems. So an effort to centralize the EDI operation begins.
Typically the EDI system becomes centralized into a single mainframe-based system. At this level, a larger number of departments are supported with a greater number of transactions.
Level 2 organizations usually have a full-time EDI manager. Upper management cannot simply delegate EDI to a technical staff – there is continual and ongoing interaction between the EDI manager and upper management.
The timeline for implementation expands considerably at level 2 because the complexity and size of the project is larger and cuts across departmental boundaries.
Level 2 is often seen as the "re-engineering" phase where companies strive to increase efficiency and reduce costs on a company-wide level by implementing large-scale EDI systems.
Level 3 - Advanced - This is a business cultural phase, when business decisions begin to be made that assume EDI will be in use. This is where EDI becomes a company way of life – it becomes part of the company culture.
EDI is typically used widely throughout the organization. Such companies
require their suppliers to also use EDI systems. EDI issues are handled
at a senior management level. The goal here is to reduce paperwork, increase
efficiency, manage production schedules (Just-In-Time manufacturing), to
decrease costs and increase company profits.