In this dynamic business world, if there is anything certain about future, it is that the future isn’t certain at all.
Enterprises worldwide have relied on EDI (Electronic Data Interchange) for decades, and there were more than a handful times when numerous authorities predicted its looming end. Nevertheless, it has remained a staple in business as it can strengthen B2B communications like no other software platform. However, as we get closer to 2020 with new technology entering the market, it is essential to re-evaluate the role of EDI.
To better understand what’s on the horizon for this long-standing protocol, we have collaborated with numerous experts to provide their opinions on EDI technology trends of 2020.
Gone are the days when companies outsourced their EDI initiatives to get the job done. As per our findings, today most of the businesses have shifted to in-house processing as it is far more beneficial. Significant cost savings, more power and control, increased levels of security, and outstanding customer experience are a few of the many reasons.
However, this shift might not be happening soon enough. Some enterprises are making efforts to battle this shift instead of embracing it. Many vendors are also changing the way how EDI is traditionally priced, charging per relationship instead of per transaction to bring down the costs.
But, truth is, most of the companies will sooner or later part their ways with outsourced units to pursue an in-house EDI integration policy.
As enterprises embark on a journey where in-house EDI systems are of tremendous assistance, they can gain more power and control over their business operations. Small-scale companies can capitalize on these advantages to streamline their growth curve and drive revenue.
Integrating EDI in-house gives companies, especially small-scale ones, the opportunity to handle business eloquently. By breaking down the network of outsourced partnerships, they can produce an integrated business ecosystem that thrives on transparency and communication. However, since not all companies have the capital to deploy an in-house project, the need to outsource cannot be ruled out completely.
EDI is expected to be one of the primary communication standards for e-commerce marketplace in 2020. It will be used to run businesses by connecting applications and systems to savor an array of benefits such as the smooth flow of retail data, inventory, and supply chain.
The ever-increasing of demands will be easily met by introducing automation via EDI, thus providing superior customer experiences.
B2B EDI integration connects an organization with its ecosystem entities such as partners, suppliers, financial institutions, etc. It enables businesses automate their business processes, integrate systems, partners and cloud applications, and secure data sharing across numerous applications. With all these benefits, EDI will further improve the capability of business process integration, and become a catalyst in 2020 that gives businesses an edge over competitors.
Whether a business selects EDI or API for integration, they’re likely to experience a staffing shortage.
With cloud computing changing the EDI technology deployment and service consumption models, companies need skilled IT teams to function properly. However, teams today are not trained enough to handle the complexities of modern technological solutions.
One of the best ways to handle such acute shortage is moving EDI to self-service platforms. Companies have started to collaborate with external entities such as partners, suppliers etc. via modern EDI integration platforms that empower even non-IT users to conduct transactions with minimal technical knowledge. Such systems reduce the need for highly skilled technical resources by shifting the workload to business users.
Technological solutions such as XML and API have given a strong competition to EDI time and again. Experts believe that blockchain technology is capable of disrupting and transforming traditional business models to provide significant business benefits, including greater transparency, improved traceability, increased efficiency, enhanced security, improved speed of transactions, and reduced costs.
It is estimated to become an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
Though blockchain holds a bright future, some industry analysts believe that it lacks the calibre to replace entire B2B transactional methodology. Experts predict that instead of replacing EDI, blockchain will work as an add-on to EDI to generate better business outcomes.
To conclude, despite such mixed opinions, it goes without saying that EDI technology has a lot of potential to drive businesses in the coming years. What do you think?