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Electronic Data Interchange ELECTRONIC DATA INTERCHANGE : AN IMPLEMENTATION METHODOLOGY by ETTIENNE MEYER submitted in fulfilment of the requirements for the degree of MASTER OF SCIENCE in the subject INFORMATION SYSTEMS at the UNIVERSITY OF SOUTH .AFRICA SUPERVISOR: PROF A L STEENKAMP JOINT SUPERVISOR: DR W B SMUTS NOVEMBER 1995 EOI: AN IMPLEMENTATION METHOOOLOGY 2 Abstract The purpose of the research is to propose and evaluate a methodology for implementing EDI to assist organisations in reaping the anticipated benefits. The research involved the systematic analysis of the state of the art of EDI and paradigms of methodologies, to define a model for the EDI implementation methodology, and to define criteria for evaluating such a model. The methodology was developed and modelled utilising the software process model, as adopted by Boehm (1988) and later duPlessis and van der Walt (1992), as a framework. Next a synthesis of the assimilated knowledge and brainstorming of project teams involved in EDI pilot projects, was used to systematically develop an EDI implementation methodology. The methodology was evaluated by utilising it in the implementation of EDI between two organisations, Computer Equipment Brokers (PTY) and Marksec (PTY). It was concluded that the methodology was efficient for implementing EDI. Keywords: Electronic Data Interchange (EDI), EDI Implementation Methodology, ANSI, EDIF ACT, SITPROSA, X.400, X.25, Interchange Agreement, Value Added Network (VAN), Computer Supported Cooperative Work (CSCW), Groupware, Software Development Life Cycle (SDLC), Software Engineering, Methodology, Software Process Model, Spiral Model, Reengineering, BPR. ABSTRACT OF DISSERTATION EDI: AN IMPLEMENTATION METHOOOLOGY 3 Preface Ettienne Meyer, born in Pretoria on 16th of November 1963, studied computer science at the University of South Africa and was awarded a B.Sc (Hons) in 1991. He has been actively involved in the Information Technology (IT) departments of both government institutions and the private sector. After consulting to a number of organisations in the development of Actuarial information systems, he became involved in the management of a Pretoria based IT consulting firm, SA Top Data Consultants, specialising in the development of computer systems across all industries. He was instrumental in the formation of one of the first Electronic Data Interchange (EDI) organisations in South Africa, namely EDiserv (PTY) Ltd. EDiserv supplies EDI software and has its own Value Added Network (VAN). It was his involvement with EDiserv that prompted his research into the EDI implementation methodologies arena. It is hoped that his work will prove fruitful to industry and researchers in their involvement with EDI in the future. PREFACE EDI: AN IMPLEMENTATION METHODOLOGY 4 TABLE OF CONTENTS Abstract ............................................... 2 Preface ............................................... 3 Acknowledgements . 9 List of Abbreviations and Acronyms . 10 List of Figures . 13 List of Tables . 15 Glossary . 16 CHAPTER 1 : INTRODUCTION . 23 1.1 BACKGROUND ................................. 23 1.2 PROBLEM STATEMENT . 25 1.3 OBJECTIVES OF THE RESEARCH . 25 1.4 SCOPE OF THE INVESTIGATION . 26 1.4.1 Hypothesis . 26 1.4.2 Delimitations . 26 1.4.3 Assumptions . 27 1.5 RELEVANCE OF THE RESEARCH . 27 1.6 METHOD OF INVESTIGATION . 30 1.7 STRUCTURE OF THE DISSERTATION . 31 CHAPTER 2: REVIEW OF THE RELATED LITERATURE: EDI ....... 32 2.1 INTRODUCTION ................................ 32 2.2 BACKGROUND TO ELECTRONIC DATA INTERCHANGE (EDI) 32 2.3 STATE OF THE ART IN EDI . 34 2.3.1 What is EDI? . 34 2.3.2 The EDI Environment . 38 2.3.2.1 Syntax rules . 40 2.3.2.2 Message Standards . 40 TABLE OF CONTENTS EDI: AN IMPLEMENTATION METHODOLOGY 5 2.3.2.3 Communications Media . 44 2.3.2.4 Communications Software . 47 2.3.2.5 Translation Software . 49 2.3.2.6 Application Link Software . 50 2.3.2. 7 Business Applications . 51 2.3.2.8 Level of Maturity of the Organisation . 51 2.3.2.9 Computer Hardware . 52 2.3.3 EDI vs E-Mail . 52 2.3.4 Benefits of EDI . 53 2.4 BUSINESS PROCESS REENGINEERING ................. 57 2.4.1 IT in Business Process Reengineering . 59 2.4.2 What Are Business Processes? . 61 2.4.3 Redesigning Business Processes with IT: Five Steps . 61 2.4.4 Management Issues in IT-Enable Redesign . 66 2.5 CURRENT RESEARCH IN EDI . 67 2.5.1 Legal Issues . 67 2.5.2 Security and Audit Issues . 69 2.5.3 Implementation strategies . 71 2.5.4 Application system integration issues . 72 2.5.5 Standards . 72 2.5.6 Communication Issues . 73 2.5. 7 EDI and the Internet . 74 2.5.8 EDI Utilisation . 74 2.5.8.1 Trade Sector Research . 75 2.5.8.2 International Research . 76 2.6 EDI IMPLEMENTATIONS .......................... 76 2.6.1 Local Implementations . 77 2.6.2 North American Implementations . 79 2.6.3 European Implementations . 81 2.6.4 EDI Elsewhere . 83 2. 7 GROUPWARE AND COMPUTER-SUPPORTED COOPERATIVE WORK (CSCW) . 85 2.8 SUMMARY . 92 CHAPTER 3 : SOFTWARE ENGINEERING MODELS . 94 3.1 INTRODUCTION . 94 3.2 SOFTWARE ENGINEERING . 94 TABLE OF CONTENTS EDI: AN IMPLEMENTATION METHOOOLOGY 6 3.3 LIFE CYCLES, METHODOLOGIES AND THEIR PARADIGMS (MODELLING) . 95 3.3.1 Life Cycles . 95 3.3.2 Methodologies . 96 3.3.3 The Spiral Model . 97 3.4 SUMMARY . 101 CHAPTER 4: EDI IMPLEMENTATION METHODOLOGY ........... 102 4.1 INTRODUCTION . 102 4.2 EDI IMPLEMENTATION LIFE CYCLE .................. 103 4.3 EDI IMPLEMENTATION METHODOLOGY (ATOMIC LEVEL) . 107 4.3.1 Feasibility Cycle . 108 4.3.1.1 Project Initiation ......................... 109 4.3.1.2 Risk Analysis I Cost8 benefit Study .............. 110 4.3.1.3 Select Alternatives ........................ 122 4.3.1.4 Formulate Project Charter ................... 122 4.3.2 Sub-system Analysis Cycle . 122 4.3.2.1 Sub-system Initiation ...................... 122 4.3.2.2 Sub-system Risk Analysis ................... 128 4.3.2.3 Sub-system Business Analysis . 134 4.3.2.4 Plan I Review Project Charter ................ 136 4.3.3 Sub-system Implementation Cycle .................. 136 4.3.3.1 Sub-system Implementation Initiation ............ 137 4.3.3.2 Implementation Strategy Evaluation ............. 138 4.3.3.3 Implement Sub-system ..................... 138 4.3.3.4 Plan I Review Project Charter ................ 140 4.4 EDI IMPLEMENTATION METHODOLOGY EVALUATION CRITERIA . 141 4.5 SUMMARY .................................... 143 CHAPTER 5 : EDI IMPLEMENTATION: CASE STUDY ............. 145 5.1 INTRODUCTION ................................ 145 5.2 THE EDI METHODOLOGY APPLICATION ............... 146 5.2.1 Feasibility Cycle . 146 5.2.1.1 Project Initiation ......................... 147 5.2.1.2 Risk Analysis I Cost-benefit Study .............. 149 5.2.1.3 Select Alternatives ........................ 156 TABLE OF CONTENTS EDI: AN IMPLEMENTATION METHODOLOGY 7 5.2.I.4 Formulate Project Charter 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 157 5.2.2 Sub-system Analysis Cycle 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 157 5.2.2.I Sub-system Initiation 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 157 5.2.2.2 Sub-system Risk Analysis 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 158 5.2.2.3 Sub-system Business Analysis 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 162 5.2.2.4 Plan I Review Project Charter 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 163 5.2.3 Sub-system Implementation Cycle 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 163 5.2.3.I Sub-system Implementation Initiation 0 0 0 0 0 0 0 0 0 0 0 0 164 5.2.3.2 Implementation Strategy Evaluation 0 0 0 0 0 0 0 0 0 0 0 0 0 164 5.2.3.3 Implement sub-system 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 164 5.2.3.4 Plan I Review Project Charter 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 166 5.3 PROJECT EVALUATION 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 167 5.4 METHODOLOGY EVALUATION 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 168 5.4.1 Evaluation Criteria and Scope 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 168 5.4.2 Survey Results 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 170 5.5 SUMMARY 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 179 CHAPTER 6: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 0 180 6.1 INTRODUCTION 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 180 6.2 SUMMARY 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 180 6.3 CONCLUSIONS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 181 6.3.1 Management Issues 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 181 6.3.2 Future Research Projects 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 182 6.4 RECOMMENDATIONS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 183 Appendix A : INTERCHANGE AGREEMENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 184 Appendix B: DELIVERY INSTRUCTION MESSAGE LAYOUT 0 0 0 0 0 0 0 0 192 Appendix C: FEATURES, BENEFITS AND PREREQUISITES OF ODEX 0 201 Appendix D: TRADING PARTNER SURVEY WORKSHEET 0 0 0 0 0 0 0 0 0 204 Appendix E : DATA COMMUNICATIONS WORKSHEET 0 0 0 0 0 0 0 0 0 0 0 205 Appendix F : LOW COST VAN OPTION 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 206 TABLE OF CONTENTS EDI: AN IMPlEMENTATION METHODOlOGY 8 Appendix G : VAN REQUIREMENTS DOCUMENT ...............
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