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124 P P a r t I I I : a r t I I I : W h a t Y o u C a n D oh a t Y o u C a n D o

In this section, we’ll look more closely at EDI and talk about why you might want to
consider it for your organization.

Nuts and Bolts
EDI uses technologies such as Extensible Markup Language (XML) and the World Wide
Web to function. The EDI format is used more for e-commerce transactions.
There are four major sets of EDI standards, each with a specific market:

• The UN/EDIFACT standard is the only international standard and is used largely
outside of North America.
• The U.S. standard ANSI ASC X12 (X12) is the largest standard in North America.
• The TRADACOMS standard, developed by the Article Numbering Association
(ANA), is the major standard in the UK retail industry.
• The ODETTE standard is used within the European automotive industry.

These standards were first introduced in the mid-1980s and are used to explain formats,
character sets, and data elements.
Organizations using EDI can communicate however they want to exchange data. These
days, that usually means web- or e-mail-based communications. However, in the past, modems
were used to connect to a Value Added Network (VAN) or to connect to a partner directly.
Value Added Networks
A VAN is sort of an electronic post office. It receives transactions, looks at the “To” and
“From” information, and routes the messages to their intended recipients. VANs are still
widely used, because they provide some additional services, such as retransmitting
documents, providing third-party audit services, and providing support.

NOTE Healthcare clearinghouses provide the same sorts of services as a VAN, but they have more
legal restrictions that are present in the healthcare industry.
Benefits to using a VAN include:

• Alert system VANs can alerts organizations to transmission issues or delivery
receipts.
• Archival storage VANs can store critical business data for extended periods of time.
• Audit trails Information including setup, configuration, and document
transmission events can be audited.
• Real-time data delivery Data can be delivered in real time, rather than in batches,
thus allowing speedier response to transmissions.
• Reliable and secure transmission VANs ensure that a company’s data is securely
transmitted and is received by the recipient.
Some VANs include Advanced Communication Systems (www.acsvan.com, or Link 6-4),
EasyLink Services (www.icc.net, or Link 6-5), and Techdinamics Solutions (www.techdinamics
.com, or Link 6-6).