Direct Connection - E-Commerce - Lecture Slides, Slides of Fundamentals of E-Commerce

Students of Communication, study E-Commerce as an auxiliary subject. these are the key points discussed in these Lecture Slides of E-Commerce : Direct Connection, Translator Computer, Network Operates, Modems, Leased Lines, Trading Partners, Telephone Lines, Indirect Connection, Electronic Messages, Communication

Typology: Slides

2012/2013

Uploaded on 07/29/2013

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Direct connection
• Each business in the network operates its own
on-site EDI translator computer.
• The EDI translator computers are then connected
directly to each other using modems and dial-up
telephone lines or dedicated leased lines.
• Trading partners using different communication
protocols can make direct connection options
difficult to implement.
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Direct connection

  • Each business in the network operates its own

on-site EDI translator computer.

  • The EDI translator computers are then connected

directly to each other using modems and dial-uptelephone lines or dedicated leased lines.

  • Trading partners using different communication

protocols can make direct connection optionsdifficult to implement.

Indirect connection

• A

value-added network

(VAN) is a company that

provides communications equipment, software,and skills needed to receive, store, and forwardelectronic messages that contain EDI transactionsets.

  • In an indirect connection, the trading partners use

the services of a VAN for communication.

  • The VAN often supplies EDI translator software

as part of their package of services.

Disadvantages

The disadvantages of using VAN include:• Requires an enrollment fee, a monthly maintenance

fee, and a transaction fee.

  • Using VAN is cumbersome for companies that want

to do business with a number of trading partnersusing different VANs.– Costs are unpredictable and tend to be higher– There is not always a clear paper trail

EDI on the Internet • The Internet was seen as a way to replace

leased lines and dial-up connections.

  • Potential problems include:
    • Concerns about security– Inability to provide audit logs– Third-party verification of message

transmission and delivery

Financial EDI

  • The EDI transaction sets that provide instructions

to a trading partner’s bank are called

financial

EDI

(FEDI).

-^ EDI-capable banks

are those banks that are

equipped to exchange payment and remittancedata through VANs.

-^ Value-added banks

offer VAN services for non-

financial transactions.