The abbreviation EDI stands for Electronical Data Interchange, which refers to the exchange of data between various internal departments within an organization as well as between different organizations, all done electronically. This transmission occurs between computer systems set up by the respective organizations, and is typically employed by medium to large-sized organizations.
I have selected Costco limited as the chosen organization due to its utilization of various types of information systems, which are crucial for their operations. Costco is a highly prosperous and substantial establishment, functioning as a wholesale store. In their operations, they make use of Electronic Data Interchange (EDI) to communicate with both their suppliers and retailers. The organization utilizes a web-hosted EDI system named DiWeb, enabling them to conveniently and efficiently access and track EDI transactions online.
An information system is a intricate network of advanced products and services that necessitates ample resources and has an impact on all departments. The responsibility of making these decisions lies with the manager, who must exercise caution. By shifting these tasks to the system, the role of technical staff will be minimized, potentially leading to job displacement for some individuals. However, this shift ultimately benefits the company in the long run and results in significant cost savings. While this may be demotivating for employees, it should serve as a motivation to achieve their predetermined objectives.
