EDI, EFT and Implications for Banks

Aims to facilitate a clearer understanding of the issues involved in formulating and implementing an electronic data interchange (EDI) strategy. In particular, analyses the potential benefits to be derived from EDI implementation, outlining operational and management difficulties likely to arise as a result of implementation. Examines the inter – and intra‐organizational issues to which EDI gives rise. This involves a discussion of the relationship between EDI and related developments such as quick response (QR), just‐in‐time (JIT) and electronic funds transfer (EFT). Outlines the relationship between EDI and EFT, arguing that EDI‐EFT has the potential to redefine organizational cash management policies and strategies, particularly in relation to the “float”, as well as the relationship between organizations and their respective financial institutions. Concludes that EDI is both complex and costly to implement and careful cost benefit analyses as well as senior management support are required.