XN000022-1990-05-10 — Page 10

THURSDAY, MAY 10, 1990

IT EMERGED IN THE LATE SIXTIES WHEN TRANSPORTATION COMPANIES REALISED THAT THE LARGE VOLUME OF DOCUMENTATION ACCOMPANYING THE SHIPMENT OF GOODS WAS RESULTING IN SIGNIFICANT DELAYS.

MR CHAN SAID VARIOUS STUDIES CONDUCTED THEN CONCLUDED THAT THE REPLACEMENT OF THESE DOCUMENTS BY COMPUTER-TO-COMPUTER COMMUNICATIONS COULD SPEED TRANSPORT AND IMPROVE BUSINESS OPERATIONS.

J

F

"SINCE THEN, EDI HAS BEEN WIDELY ADOPTED IN ALL BUSINESS SECTORS. IT IS, IN MANY WAYS, AT THE CORE OF BUSINESS IN THE 1990'S.

ELECTRONIC DATA INTERCHANGE WAS NOT A TECHNOLOGY, HE SAID. IT WAS A BUSINESS METHODOLOGY, THE AUTOMATED FLOW OF INFORMATION ACROSS ORGANISATIONAL BOUNDARIES.

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THERE WERE OBVIOUS BENEFITS IN EDI IN TERMS OF SPEED ACCURACY AND COST SAVINGS.

"BUT EDI GOES FURTHER THAN THAT," HE SAID. "IT +IS AFFECTING RELATIONSHIPS BETWEEN TRADING PARTNERS BECAUSE THERE IS A ELEMENT OF PARTNERSHIP IN THE WAY FIRMS ARE IMPLEMENTING EDI.

STRONG

"THE INEVITABLE RESULT IS THAT COMPANIES NOT USING EDI FIND THEMSELVES LEFT OUT IN THE COLD.

COULD

OF

"THIS IS ONE REASON WHY EDI IS SO IMPORTANT TO THE BUSINESS THE FUTURE, AND NOT JUST TO MAJOR COMPANIES BUT SMALL FIRMS, TOO, HE SAID.

MR

—

CHAN SAID THE INITIAL PURPOSE FOR WHICH EDI WAS DEVELOPED

STILL HELD GOOD AS THE PRIME THAT OF REPLACING PAPERWORK - REASON WHY ALMOST EVERY TYPE OF BUSINESS COULD GAIN FROM IMPLEMENTING IT.

PAPER TRANSACTIONS WERE NOT ONLY SLOW AND INEFFICIENT, BUT ALSO COSTLY AND PRONE TO HUMAN ERROR.

+7

HE SAID.

"FOR THE GOVERNMENT, THIS IS THE MAIN DRIVING FORCE,

THE VOLUME OF TRADE WAS INCREASING AND WITH IT THE VOLUME OF DOCUMENTATION.

**THERE IS NO SENSE IN SIMPLY PAPER-BASED SYSTEM IN AN ATTEMPT TO COPE.

EXPANDING THE

EXISTING

"WE HAVE TO FIND A BETTER WAY TO RENDER GOVERNMENT MR CHAN SAID.

SERVICES,"

DECLARATION

TAKING TRADE DECLARATIONS AS AN EXAMPLE, HE SAID A

OUT WAS REQUIRED FOR ALL GOODS COMING INTO AND GOING

OF HONG KONG. LAST YEAR, THE GOVERNMENT PROCESSED SOME NINE MILLION DECLARATIONS. THIS WAS EQUIVALENT TO AN AVERAGE RATE OF MORE THAN ONE LODGEMENT SECOND FOR THE TIME THAT COLLECTION OFFICES WERE OPEN. THE PEAK HOURS WAS EVEN HIGHER.

PER

DEMAND AT

/"I NEED

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