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United States Small Business Administration
Office of Advocacy
RS 159
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Purpose
Electronic data interchange (EDI) is an emerging technology that
has important implications for small firms. EDI can be broadly
defined as the computer-to-computer exchange of routine information,
from one organization to another. Small firms' ability to compete
will be affected by their use of EDI. The Office of Advocacy initiated
this research to identify: (1) the benefits and any adverse effects
of EDI on small firms; (2) measures that may be taken to implement
a uniform EDI technical standard; (3) measures that may be taken
to prevent EDI from having an adverse effect on small firms in
the federal procurement process; (4) measures that may be taken
to prevent EDI from becoming a competitive barrier for small firms;
and (5) technical and financial assistance the U.S. Small Business
Administration and other federal agencies can offer to small firms
that seek to use EDI.
Scope and Methodology
A thorough search of books, reports, articles, and conference
materials published by business and trade press, companies, technical
standards bodies, and government agencies was conducted. In addition,
interviews were conducted with small and large firm users of EDI,
industry trade groups, EDI software and service vendors including
Value Added Networks (a third-party service that can furnish users
with services such as message storage and forwarding, transmission
tracking, data translation, additional security, etc.), and other
key players. The research also included a series of case studies
of EDI in the retail sector, in health care networks, among firms
in international trade, and in one Department of Defense installation.
Highlights
Summary
EDI is a rapidly spreading technology that is quickly changing
the face of marketing goods and services across many industries.
Because their financial and managerial resources are usually more
limited than those of large firms, small firms are typically not
the first to implement new process technologies that are greatly
affected by economies of scale. Small businesses' lack of information
and resources to become active EDI users may present a special
handicap to their ability to compete. Providing information, matching
resources, setting standards, providing access and ensuring a
smooth transition for small firms to this new information-based
market environment should be a priority for public and private
small business organizations.
Ordering Information
The complete report is available from:
National Technical Information Service
U.S. Department of Commerce
5285 Port Royal Road
Springfield VA 22161
(703) 487-4650
(703) 487-4639 (TDD)
Order number: PB95-271102
Cost: A09 (paper); A02 (microfiche)
*Last Modified 6-11-01