Efficiency analysis of controls in EDI applications

The high penetration levels of electronic data interchange (EDI), a mechanism for inter-organizational electronic commerce, has revolutionized the way organizational conduct their business. Major benefits derived from EDI, however, depend upon the use of appropriate controls to overcome potential risks and exposures inherent in integrating and utilizing of the system. As many resources and skills are required for the implementation of EDI controls, their design should proceed carefully. This paper discusses a description of a data envelopment analysis (DEA) model for analysis of the controls for a specific context of electronic data interchange. A data envelopment analysis model to analyze the efficiency of controls in the context of finance and trade. The model uses eight variables of formal or automated EDI controls as input and four variables of EDI implementation and performance as output. Automated controls are more efficiently utilized in financial than in trade applications, while formal controls are more efficiently used in trade applications. Every company can determine the relative amount of reduction in each mode or component of controls in order to make the control system efficient.