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The used of electronic and online technology in any sector or industry of the economy has brought forth with the so-called paperless transaction.
The concept of EDI veers away from voluminous paperwork's that come with the traditional business as diagrammatically shown in Fig.49.
Application of EDI
Open EDI
A more recent innovation to EDI is Open EDI on Virtual Private Networks(VPN).
VPN is a technology that need for expensive leased lines for site-tosite communication and long distance remote access.
Two major requirement of a VPN: There must be a method of keeping the data secure as it traverse the internet. There must be a means of authenticating the person or system making the connection.