Planning for electronic data interchange

Abstract

A model of strategic implementation is developed as a possible solution to the inability of numerous US business organizations to effectively plan their electronic data interchange (EDI) systems. The model is developed based on an extensive analysis of the EDI systems of numerous US firms and illustrates the dynamics of such systems in reference to supplier-customer relationship, as influenced by corporate structure, marketing and distribution channels, and buyer power. Five generic business strategies are formulated using the EDI model. These are the strategy in which retail firms follow the lead by suppliers and customers, the strategy in which EDI's functions in the supply chain are expanded, the new products and services strategy, the tie-in strategy, and the time-based competition strategy.