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EDI Adoption in Saudi Arabia-Ncc16
EDI Adoption in Saudi Arabia-Ncc16
EDI Adoption in Saudi Arabia-Ncc16
Dr. Mohammed A. T. Al-Sudairy Assistant Professor Business Department Faculty of Economics & Administration King Abdul Aziz University, Jeddah E-mail MAS@KAAU.EDU.SA
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EDI adoption in SA
Presentation Layout
Introduction EC and EDI Methodology Findings Conclusion
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EDI adoption in SA
Inter-Organization Systems
Electronic
Data Interchange (EDI) Electronic Commerce (EC) Electronic Fund Transaction (EFT) Electronic Mail (E-mail) Electronic Form (EF) Integrated Massaging and Shared Database
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Electronic Commerce
EC
is the handling of business transaction over communication networks. EC is not enabling technology but it is simply conducting business electronically through enabling technology such as EDI, VANs and Internet.
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EDI adoption in SA
EDI Components
EDI Standards Communication Standards EDI Software EDI Networks
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Sender
Application
Receiver
Application
Translator
Translator
Communication Software
VAN
Communication Software
EDI Network
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EDI adoption in SA
Unit
CSE
No.
Description
Price
6900 CELLULOSE SPONGES 12.75 P450 PLASTIC PAILS .457 1640Y YELLOW DISH DRAINER .95 1507 6 PLASTIC FLOWER POTS 3.00
:To
ANSIX12 Invoice
EDI Interface
Application System
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EDI adoption in SA
Communications Interface
Application Interface
Application System
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EDI adoption in SA
EDI Benefits
Reduced
overhead costs Reduction in labour Increased accuracy Improved communications and management control Improved inventory control Enabled retailers to be more responsive to consumer needs
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Motivation Factors
Strategic
Better
Operational
communication Quick response & with trading partner access to information Remaining competitive Increase data accuracy Butter customer service Reducing stock
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EDI Barriers
Difficulty
of a cost/benefit evaluation The need to keep in use two information systems Standardisation Externalities of EDI applications can overstep the firms boundaries and modify the business and market perspective from competition to collaboration. Resistance to change.
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Exploratory Study
Survey
Questionnaire The
Sample
297 40
Response
126 (37%) 34 use EDI 92 None user
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10
15
20
0
Distributer Appliance Sup / mrk Car Dairy Dep / Furnitur store Pharmacists Stationery Supestore Food Cosmetics Toys Cothing
18 EDI adoption in SA
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Business Type
Others
Finding
Job Title
47% MIS Manger 17% CEO 15% MIS Employee
Annual Sale
42% 25-199 MSAR 41% >200MSAR 17% <25 MAR
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Finding / Pressure
Local Suppliers
7
Local Customers
7
Overseas Suppliers
26
Overseas Customers
5
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Hypotheses Results
Variables Organization size Competitors use EDI Pressure local sup Pressure overseas sup Pressure local custm. Pressure overseas custm. Chi-Q 2.27 7.26 3.25 12.3 20.88 3.00 Sig 0.32 0.02** 0.07 0.00*** 0.00*** 0.08
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EDI Barriers in SA
The lack of MIS staff An inadequate training program An unsatisfactory
communication lines Poor awareness about EDI Standardized business operating procedure
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IT Barriers
Lack of technical expertise either by Service providers or Organizations the users Shortage of technical skilled employee Lack of technical support
by IT
23
Closing
Government
Private
Need to be computerized Treat IT as a competitive weapon Joint venture and strategic alliances
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