Origin of Electronic Data Interchange: A Legal Perspective

Introduction:

Today, we are living in an era of science and technology. Modern technology made our life very easy and comfortable. It provides us various methods of communication that help us to reach our message on time and without any harm to the messages. Electronic data is one of those methods of communication. Electronic data change is the process of communication by electronic devices like computers to computers. It is also known as the exchange of coded language and mails which starts from the sender’s computer and travels up to the receiver’s computer.

Electronic data exchange methods are being used for a long time. This mode of communication is very fast as compared to the earlier modes like postal mail and fax etc. Electronic data interchange is replacing the earlier ways of communication from one person or company to another person or company. It saves time, money, and makes life easier to communicate a message from one individual to others. It reduces paperwork to a large extent. Electronic data exchange is easy to access and working on it. It is considered good proof for any contract to take place by online mode. EDI transmit message by a various telecommunication system. It has a particular standard to work.

Origin of Electronic Data Interchange

It is considered that EDI came into force in 1960 when the computer system acquired the facility to exchange data and other information from one device to another.  ED Guilbert is known as the father of Electronic Data Interchange and also expands the standardized shipping manifest. It is considered that he had developed it with Army officers of the US in 1948 during the Berlin Airlift. Guilbert sent the 1^st  message by electronic mode in 1965 for cargo Information. Earliest when we have to send, Firstly we have to convert the message into tap and then load on the computer to send it forward. In 1968, a committee was formed by a group of railroad companies to develop a standard format for sending a message by Electronic Data Interchange methods, and the committee is known as the Transport Data Coordinating Committee. The main of forming this committee is to put the message into a standard format because by using a standard format it becomes very easy to understand and analyze.

The File Transfer Protocol (FTP) was published in 1973 and enabled the files to transfer from one device to another by Internet sites. In 1975, The committee release the 1^st Electronic Data Interchange  Standard in which Guilbert was considered as a major contributor, and also 1^st-time Value Added Network (VAN) was established. It is considered that in 1977, a group of grocery companies and their business partners started drafting by EDI project. In 1978, the Transport Data Coordinating Committee is renamed Electronic Data Interchange Association and it was also chartered by the American National Standard Institutes and a new committee known as ANSIX/2 that is responsible for the publication of format of EDI standard.

In 1985 United Nation created an EDIFACT Electronic data interchange standard that will assist with global technology and the same was adopted by automobile industries and other various industries. Various US Industries stuck with the ANSIX/2 standard. EDI makes his own identity in the eyes of today’s era. It transfers messages fastly from one person to another. It was the amazing thing is that when the EDI start working properly in 1991, nearly 12,000 companies in America started using the EDI method for communication. It becomes most popular in the last 20^th century. The Uniform Code Council also started work by Electronic data interchange method of communication by 1996 to make the communication in a standardized manner.

In 2001, The Uniform Code Council published the AS/2 standard of EDI communication that allows the encrypted transmission of the message and other important information or data by using the internet. It also used the HTTP protocol for electronic data interchange to standardize the communication and make it transfer in the particular standard that will help to understand and analyze it. Wal Mart started EDI communication with its partners by using the  AS/2 standard of communication. It is considered that AS/2 has got more popular because it is very cheap than other EDI methods like VAN. It is very fast as compared to other modes. It eliminates the paperwork by converting it into paperless work by using an electronic form of documents.

EDI played and still playing a crucial role in maintaining a good relationship between the business and other partners. It makes work very easy and secure by using electronic mode. It is considered that more than 100,000 companies have applied the electronic data interchange for faster and easy communication to increase their profit and make their personality in the marketing by doing their work on time and also satisfied the demands of people.

The infrastructure of Electronic Data Interchange

Various elements have their infrastructure for the proper working of that system. The infrastructure of EDI are as follow:-

1. Format Standard: It allows computers and other devices to use a standard format for putting all data in a particular format that will help to understand and analyze the data. It makes it easy to understand when both receiver and the sender use the same format to write the message and data. An example is the American National Standard Institutes, AS/2, and many more.
2. Translation software: It translates various type of data and make it easy to understand those data and analyze them. It translates data from generic standards to various standards that will be easy for both receivers and senders to understand that what is the data all about.
3. Value-Added Network (VAN): It plays a very crucial role in transforming data from one person or company to another by using a network from one device to another device. It helps to provide good transmission speed with a similar protocol. It solves the problem of waiting in a large line and gives surety of the transmission of mail that is sent from sender to receiver.
4. Procedure for complying with legal rules. It is necessary to follow certain guidelines for the privacy of data and transfer the same to those particular individuals whom we want to send. We have to follow certain guidelines that are necessary to maintain the privacy and security of the individual’s documents.

It is considered that the fourth building block for the proper functioning of Electronic data interchange is inexpensive computers. Because they provide opportunities for individuals to send a message or important data with full security and at a fixed time. These computers are made up of various microcomputers and micro components. Any firm can deal with various sizes of computers by using EDI. It also helps in the online transaction of money from one account to another account.

Benefits of using Electronic Data Interchange

It plays a very crucial role in solving the problem that was faced during the paper-based transaction of data and documents.

1. It is very fast as compared to the paper-based transaction because during the paper-based transaction it takes much time to transport from one place to another. But with help of EDI, we can send it within a minute. It saves a lot of time that we can use it in other works.
2. The paper-based interchange of data requires a lot of process for transferring documents or data but by using EDI no ling process requires for the interchange of data and other pieces of information. It also reduced the labor cost because it does not require a large no of workers to work on it.
3. It is more accurate than the paper-based interchange process.
4. By using Electronic ways it is possible to send data or information to many people at the same time while it is not possible by other methods.
5. It is subject to automatic processing, analyzing, and time to time update. It requires very little space to store these documents and can interchange these documents when we need to share it.
6. It gives proof of everything or a contract that is made by electronic mode and we can make it enforceable in the court of law.

It keeps a record of every online interchange of information and eliminates the headache of forgetting things. It is very hard to keep a record by using paper. If we see it from the legal perspective it is very helpful for giving proof of every transaction and information and make it easy to complete the contract. It also helps from shaving and securing our data.

Conclusion

Electronic data interchange brings a new era that helps to make work on time with full privacy. It is also an important process that will help in making India digitally successful. It provides a platform for the proper interchanging of data and information from one company or individuals to another. It provides a proper standard by which we can share our data and messages with the receiver by which it makes very easy to understand and analyze the data. It reduces the paper-based documents sharing. Electronic data interchange requires very little space to store documents as compared to paper-based. EDI methods are very secure to interchange our data and other important pieces of information. It provides solid proof of any sharing documents and any contracts that are made by online mode and we can make it enforceable and can force another party to perform his duty.

When it starts for the 1^st time when Guilbert sent 1^st message by electronic mode in 1965 for cargo information, from that time it is making its own identity and continuously reducing the paper-based work. It proved very truthful and good proof from when it started. As a result, we can see, more than 100,000 companies are using Electronic Data Interchange methods for communications with their business partners. It will surely make the entire work in electronic mode in the upcoming future.