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B2B Integration : A Practical Guide to Collaborative E-commerce

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Extensible Markup Language (XML) 181<br />

support XML should also support XML/EDI messages. EDI information<br />

within an XML/EDI message is explicitly labeled using tag names.<br />

DTDs that contain the structure declaration and relevant sets of code<br />

values can be referenced over the Internet.<br />

XML/EDI is a fusion of many concepts. XML/EDI:<br />

• Uses the XML and XSL for data interchange and presentation<br />

respectively;<br />

• Provides a standard for formatting documents;<br />

• Can be integrated with traditional methods of Electronic Data<br />

Interchange (EDI)<br />

• Can be used with all standard Internet transport mechanisms such as<br />

IP routing, HTTP, FTP and SMTP;<br />

• Uses modern programming <strong>to</strong>ols such as Java and ActiveX <strong>to</strong> allow<br />

data <strong>to</strong> be shared between programs; and<br />

• Uses agent technologies for data manipulation, parsing, mapping and<br />

searching.<br />

6.6.4. Benefits of XML/EDI over traditional batch EDI<br />

The benefits of XML/EDI over traditional batch EDI are:<br />

• XML/EDI is more dynamic, less costly and simpler than traditional<br />

EDI. It significantly reduces the entry costs for small and medium size<br />

companies, which cannot afford expensive EDI-based communication.<br />

• XML standards significantly reduce the number of trading partnerspecific<br />

maps required.<br />

• XML transforms static EDI tasks such as inven<strong>to</strong>ry management and<br />

production scheduling in<strong>to</strong> dynamic processes, by using real-time<br />

XML-encoded information obtained directly from cus<strong>to</strong>mers' and<br />

suppliers' business systems.<br />

• XML/EDI does not require extensive changes in the application layer<br />

which produces and consumes the data, as it keeps the information<br />

structure of EDI intact. The transition from EDI <strong>to</strong> XML using<br />

XML/EDI is done more at the transport layers.<br />

• The open architecture of XML allows the support of multiple<br />

standards.

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