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Electronic data interchange (EDI) is the concept of businesses communicating electronically certain information that was traditionally communicated on paper. The two classic examples of such information are purchase orders and invoices. Standards for EDI exist to facilitate parties transacting such instruments without having to make special arrangements.
EDI has existed for more than 30 years, and there are many EDI standards (including X12, EDIFACT, ODETTE, etc.), some of which address the needs of specific industries or regions. It also refers specifically to a family of standards. In 1996, the National Institute of Standards and Technology defined electronic data interchange as "the computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media." It distinguishes mere electronic communication or data exchange, specifying that "in EDI, the usual processing of received messages is by computer only. Human intervention in the processing of a received message is typically intended only for error conditions, for quality review, and for special situations. For example, the transmission of binary or textual data is not EDI as defined here unless the data are treated as one or more data elements of an EDI message and are not normally intended for human interpretation as part of online data processing. EDI can be formally defined as the transfer of structured data, by agreed message standards, from one computer system to another without human intervention.


Representing Data

Are Computers mystery machines? We have all seen computers do seemingly miraculous things with all kinds of sounds, pictures, graphics, numbers, and text. It seems we can build a replica of parts of our world inside the computer. You might think that this amazing machine is also amazingly complicated - it really is not.
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In fact, all of the wonderful multi-media that we see on modern computers is all constructed from simple ON/OFF switches - millions of them - but really nothing much more complicated than a switch. The trick is to take all of the real-world sound, picture, number etc. data that we want in the computer and convert it into the kind of data that can be represented in switches, as shown in Figure 3.

Figure 3: Representing Real-World Data In The Computer
Like with the artist’s abstract composition, the trick is to take all of the real-world sound, picture, number, etc. data that we want in the computer and convert it into the kind of data that can be represented in switches, as shown in Figure 3.
Computers Are Electronic Machines. The computer uses electricity, not mechanical parts, for its data processing and storage. Electricity is plentiful, moves very fast through wires, and electrical parts fail much less frequently than mechanical parts. The computer does have some mechanical parts, like its disk drive, (which are often the sources for computer failures), but the internal data processing and storage is electronic, which is fast and reliable (as long as the computer is plugged in).
Electricity can flow through switches: if the switch is closed, the electricity flows; if the switch is open, the electricity does not flow. To process real-world data in the computer, we need a way to represent the data in switches. Computers do this representation using a binary coding system.
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