Overcoming EDI Adoption and Implementation Risks

Frederick J. Riggins and Tridas Mukhopadhyay
International Journal of Electronic Commerce,
Volume 3, Number 4, Summer 1999, pp. 103.

Abstract: The emergence of the Internet as a business-to-business communications tool enables a new wave of adoption of EDI and other interorganizational systems. Initiators of these trading-partner relationships must develop concrete strategies for managing the adoption and implementation risks associated with EDI. They may have to subsidize both the initial adoption and subsequent internal usage of these systems by their trading partners if they are to maximize their benefits from the technology. EDI can create strategic value in certain circumstances. To improve internal processes and thus produce operational benefits, it must improve the information flow between trading partners to the point where it exceeds the threshold level. Finally, because the operational benefits of EDI are context-specific, initiators should require their trading partners to develop specific metrics to measure its effect.

Key Words and Phrases: Business process reengineering, electronic data interchange, Internet, technology adoption risk, technology implementation risk.