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Frequently Asked Questions

What is EDI?
 
It's Alive and Kicking!
Electronic Data Interchange (EDI) is the computer-to-computer exchange of business data in standard formats. In EDI, information is organized according to a specified format set by both parties, allowing a "hands-off" computer transaction that requires no human intervention or rekeying on either end. All information contained in an EDI transaction set is, for the most part, the same as on a conventionally printed document.
 
Organizations have adopted EDI for the same reasons they have embraced much of today's modern technology-enhanced efficiency and increased profits. Benefits of EDI include:
  • Reduced cycle time
  • Better inventory management
  • Increased productivity
  • Reduced costs
  • Improved accuracy
  • Improved business relationships
  • Enhanced customer service
  • Increased sales
  • Minimized paper use and storage
  • Increased cash flow
The EDI standards are developed and maintained by the Accredited Standards Committee (ASC) X12. The standards are designed to work across industry and company boundaries. Changes and updates to the standards are made by consensus, reflecting the needs of the entire base of standards users, rather than those of a single organization or business sector. Today, more than 300,000 organizations use the 300+ EDI transaction sets to conduct business.
 
 
 
What is XML?
 
It's Working in Concert with EDI!
XML, or eXtensible Markup Language, is a new high-powered Web language developed for e-business. Unlike HTML that displays text and images now found on Web pages, XML enables the exchange of structured data over the Web.
 
Uniting EDI with XML provides win-win, affordable and easy-to-use business solutions for all organizations. By enhancing EDI processes, ASC X12 can evolve the current infrastructure into something more universally accessible. XML, with EDI as the foundation, provides ubiquitous connectivity and interoperability. Developing cross-industry XML specifications represents a huge standardization effort that includes:

  • Exchanging transactional data
  • Developing messaging and protocol infrastructure
  • Creating code-value dictionaries
  • Devising trading partner agreements
  • Defining business processes performed in conjunction with business-to-business exchanges
This great integrator-XML-broadens the scope of interest to include such applications as trading partner agreements so that e-business communities and their information supply chains are fully integrated. Any XML-based infrastructure can establish a dynamic trading network instead of a few key connections. By establishing uniform XML standards, organizations can accelerate the intro-duction of new products and reduce costs.
 
ASC X12 is working diligently to enhance communications around the world by collaborating on Electronic Business XML (ebXML) initiative-a worldwide effort to develop a common framework for XML business messages. The XML standards proposed by X12, based on over twenty years of rich business semantic development, will be fully compliant with ebXML recommendations. X12 membership dues support this cross-industry XML standards development effort. Through ASC X12 membership, your company can be an active participant and supporter of this e-business standards development process.
 
 
 
How will the Internet affect E-Commerce?
 
Accelerating & Extending Business Data Interchange!
Electronic Data Interchange (EDI)-in existence for over 25 years-is the stable component of conducting electronic commerce (EC). During this time, technology has experienced tremendous growth, making EDI an essential tool for businesses in today's global marketplace. Two significant factors will contribute to this continued success: the Internet and evolution in standardization.
 
The development of X12, the principal standard for e-commerce transactions today, has had a profound impact on the growth of electronic commerce. Organizations using X12 have eliminated interoperability problems by using one common standard. X12 caused enormous expansion in the use of EDI across a multitude of industries.
 
ASC X12 is working to enable e-commerce to extend beyond Fortune 1000 companies and to the remaining business processes that have yet to be automated, to operate securely on the Internet, and to be accessible to small-to-mid-sized enterprises. Through XML and the ebXML framework, the scope and interoperability of EDI is now being extended. Through implementation of these new EDI formats, e-commerce will continue to grow exponentially. The following chart shows percentages of business processes yet to be automated.
 
The use of EDI, EDIFACT, XML and ebXML formats, and the Internet will continue to eliminate barriers for e-commerce, such as high cost, trading volume requirements and proprietary software. As a result, more companies and industries are using e-commerce to gain a competitive advantage in today's marketplace.
 
 
 
What is ASC X12?
 
In 1979, the American National Standards Institute (ANSI) chartered the Accredited Standards Committee (ASC) X12 to develop uniform standards for inter-industry electronic exchange of business transactions-electronic data interchange (EDI).
 
 
 
How are the X12 standards developed?
 
The members of ASC X12 come together three times each year to develop, maintain and build on uniform standards for EDI, known as X12 standards. This process is open, involves discussion and consensus, and results in ballot, approval and standard registration with ANSI.
 
 
 
How is DISA involved with the X12 standards?
 
In 1987, in response to the rapidly growing number of industries employing X12 standards, DISA was chartered by ASC X12 to serve as their Secretariat for the X12 standards development process. DISA publishes, and is the only official source for, X12 standards.
 
 
 
What is a release and/or subrelease?
 
A complete set of X12 standards is called a release. Twice a year, following the February and June ASC X12 meetings, the X12 standards are republished in a "subrelease," which contains changes made since the previous release. Each release and subrelease represents a "snapshot" of the X12 standards database that is continually evolving.
 
 
 
Are releases and subreleases compatible?
 
Different releases and subreleases are NOT compatible. Transaction sets, segments, and data elements must all be used at the same version/release level. Releases and subreleases are designated by a six-digit code that represents a version, release, and subrelease level. For example, Version 3, Release 6, Subrelease 2 is designated "003062." When referring to releases and subreleases, drop the first two zeros of the code. This catalog employs this abbreviation.
 
 
 
Which release or subrelease do I use?
 
The decision on what standards are needed is influenced by many factors, including what version(s) current and possible future trading partners use. To determine which release or subrelease contains the standards that you need, consult page 11. The four-digit code in the last column indicates the release or subrelease in which each standard was first published; the standard appears in each subsequent release and subrelease unless otherwise noted. With over 300 transaction sets approved and continuously maintained since their inception, X12 standards can be used to conduct nearly every facet of e-commerce.
 
 
 
What are X12 Technical Reports & Guidelines?
 
Technical reports and guidelines are ASC X12-approved documents to promote consistency and coherency among information processing systems utilizing X12 standards.
 
To encourage uniform standards implementation, X12 technical reports are in two formats: type 1-tutorials and type 2-reference models. Tutorials walk users through a specific standard and describes the developer's intended use of that standard or transaction set. Reference models illustrate the use of a group of transaction sets as they relate to each other and business applications.
 
Guidelines disseminate the technical and logical concepts reflected in the standards, or convey information on the "state-of-the-art" as it relates to EDI, the X12 standards, or a particular aspect of the standards. Guidelines are not specific to a single X12 standard or version/release.



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