Implementation of electronic data interchange in the Department of Defense: lessons learned from private industry

Abstract

The Department of Defense (DoD) has emphasized Electronic Data Interchange (EDI) since 1988 when the Deputy Secretary of Defense issued a policy directive that EDI was to become 'the way of doing business' for DoD in the future. The focus of this research is on how private industry is implementing EDI, and specifically how EDI is being used in the procurement and acquisitions environment. The results from a survey of private industry showed that (1) EDI use will continue to grow in the procurement environment and that most impediments to EDI will be resolved with time and experience; (2) EDI must be adopted by the critical mass before the full benefits and savings will be recognized by DoD and industry; (3) top level management support and a detailed, well thought out strategic EDI plan are mandatory for successful implementation of EDI; and (4) the transaction sets currently being used by private industry for procurements and acquisitions limit DoD EDI opportunities for large purchases. Recognizing these conclusions, recommendations to DoD are then presented.