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XML and EDI

The internet is analogous to a very large library where all the booksare scattered on the floor. This is because it contains so muchinformation, but there is no organizational system for sorting through theinformation. "Many people have expended a lot of time and effort over theyears to try to put some order into this chaos but with varying degrees ofsuccess." (Wiseman 113). The eXtensible Markup Language, or XML, aims totake on the electronic clutter and organize it in a way that everyone canuse. Although XML promises to bring drastic organizational changes to theinternet, it is not a new concept. In fact, businesses have been using "acollection of standard message formats and element dictionaries to exchangedata" for the past twenty-five years (Wiseman 114). This type of formattingfor electronic commerce is called Electronic Data Interchange-EDI-and hasallows businesses to trade information necessary to their functioning. It is for this reason that XML has sometimes been called "the poorman's EDI" or "EDI for everyone," XML brings organization to the commonman's electronic world, while EDI has structured corporate commerce sincethe dawn of the information age. EDI's foundations can be t


EDI messages serve to exchange documents or data between companies. Thesame principles apply to all commercial transactions. Today,only sites that have been specifically set up to exchange information canconduct EDI transactions. Eventually XMLwill no-longer be considered the poor man's EDI; it will simply be EDI foreveryone, everywhere. This isbecause a number of large corporations like Wal-Mart and K-Mart refuse toconduct business with any company that does not use EDI. This is precisely what makes XML necessary for use on theinternet-it has the capability to handle EDI information, but at a muchlower cost to the user. XML promises to allow clients to implement EDI with a minimum ofeffort, and thereby reduce costs. The XML processor is able tointerface with an application, such as a word processing document, whichallows further manipulation of the document. raced back to1948 "during the Berlin airlift when Ed Guilbert of the Department ofDefense spearheaded the Transportation Data Coordinating Committee. HTML was cheaper and easier to put into practice. However, different organizations store their data in different formats andhave different data layouts (Rifkin 105). In addition to the costs of programming and data mapping,companies incur high costs in acquiring and implementing EDI. In 1979, the American National StandardsInstitute Accredited Standards Committee X12 began to develop uniformstandards for the electronic exchange of business transactions in standardsknown as Electronic Data Interchange. The internet has broughtelectronic commerce to all types of consumers, and this is what has madeXML such an attractive option.

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