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coordinated. Often, new data tags (information) in an XML document can be ig-
nored by a processing system if that system has no need for the data. The new data
will not, by itself, obscure the data required by the processing system.
E
LECTRONIC
D
ATA
I
NTERCHANGE
(EDI)
EDI-based processes are prime candidates for improvements with XML. EDI is a
standard definition (defined by ANSI or EDIFACT) of acceptable document struc-
tures for various types of business transactions. Document structures are defined
for purchase orders, acknowledgments, invoices, and other transaction types.
Systems use EDI when they either generate a document in EDI format or re-
ceive and subsequently process an EDI document. EDI documents are intended to
be transmitted from one business partner to another. In most cases, some data
translation and reformatting is necessary so that EDI documents can be properly
used by target systems.
Organizations called value-added networks (VANs) provide EDI-related ser-
vices, such as secure and reliable document transmission services, business partner
connections (that is, electronic access to your business partners), and document
management (such as store and forward, translation, and logging). Examples of
VANs are GE Information Systems (GEISCO), Sterling Commerce, and Harbinger.
To date, EDI standards have proved useful as well-defined data representation
formats. However, their rigid structure (along with other issues, such as high im-
plementation and transaction costs) has restricted the acceptance of EDI standards
in many situations. Typically, EDI is employed as a data transfer mechanism be-
tween business partners only if the number of documents exchanged justifies the
effort and the expense and both organizations have technically savvy IT organiza-
tions.
The XML language, combined with widely available Internet technologies,
promises to radically change the way business documents are transferred between
organizations. Organizations are all interconnected today over the Internet. SSL
(secure socket layer), encrypted digital signatures, and other technologies provide
adequate transactional security for most situations. These technologies, allied with
XML's ability to combine flexible document content with well-understood docu-
ment structure, enable organizations to confidently, effectively, and efficiently ex-
ecute electronic business processes with a wide variety of business partners.
XML and EDI do not necessarily directly compete as potential solutions. An
XML file can contain data that conforms to EDI content specifications, even if it does
not conform to EDI's document structure specifications. All that is required is a suit-
able DTD. In fact, several initiatives are underway to do just that. EDI-based interface
