Costco Information Systems – EDI Essay

EDI stands for ‘Electronical Data Interchange’, this is the transmission of data between different parts of the organisation and it is also used from one organisation to another electronically. This is done from one computer to another computer system, the one set up from the organisation. It is normally used by medium or large sized organization.

The organization that I have chosen is Costco limited. I chose this organisation because they use different types of information systems and it is an important system for their company.

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They are a really big and successful organisation. Costco are a wholesale store too, which is where the EDI comes in as they use it to contact their suppliers and also used with the retailers. The organisations have used a web-hosted EDI to access the EDI information online. The web-host is called DiWeb, its used to see the process and to track the EDI transactions easily and eddiciently.

An information system involves a complex web of highly developed products and services.

It consumes a good amount of resources and it also affects every department. These decisions have to be made by a manager and have to be looked at carefully. This will minimize the role of technical staff as it will now be done on the system, it could cause it job loss for some people but will benefit the company in long term. It also saves a lot of money. This may be demotivating for the employees but it should motivate them to reach the expected results they have set out for themselves.

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