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ABSTRACTCommunication has evolved over past decade. Let it be a verbal communication between two persons or be it a formal communication which happens in business. In a business perspective, say e-commerce business, the business in these sectors hugely rely on communication with third party person and their needs, processing their orders. Decades back when these were all handled in manual way, filling out forms, posting the paper works to the recepients etc. With technology advancing and the introduction of digital wave in this sector, the world started witnessing a change. The paper works done were all handled in computer utilizing the speed of processing, witnessing how the generic name documentation slowly tranformed itself into invoice, credit notes, order etc., use of printers. The data has taken its standard form with this change. Even then, what has not changed was the way these thigs were deleiverd to the recepient. This process involved high risk loosing data posted, delay in delivery. Over a period of time, the industry has overcome this limitation by utilizing the some thing called Electronic Data Interchange (EDI). With EDI, data can be sent from one computer to another computer with a spilt of a second. Steadly with this technology, the business communication has become more effective with exchange of data in a structured way without any manual intervention. In an easy way, EDI can be simply explained as an electronic way of communication between two parties with a specified standard and format eliminating the use of manual intervention and associated paper works. When a data is agreed to send via EDI process, both the involved parties should adhere to the common rules which they have agreed upon. This helps the computer to read data appropriately. There are vast areas of imporvement in terms of applying EDI process across industries and has been under research for quite a long. With lot of data transfers takes placed between companies via internel EDI has evolved as a better mechanism for companies to sell, buy or even exchange information.LITERATURE SURVEYA lot of research has been done in the area of EDI to establish a standart format of data exchange, its savings on cost and time.Mike Bridges 1, in late nineties has proposed a method for introducing paper into business process as an electonic document, calling for a wide change in the process. According to him, processing documents electronically, delivers significant cost savings and process time compression while preserving business accepted practices. He calls for merging of two industies ‘The Imaging / Integrated Document Management’ and the ‘World Wide Web’. Merging IDM and the Internet offers the greatest return for electronic document exchange. He proposed a new standard called Electronic Document eXchange (EDX V2.0) which proved effective in streamlining the business exchange process. This new standard has leveraged the IDM investment and exploited the communication efficiencies of the Internet. Thus EDX has combined EDI techniques to unstructured data (images). Yannes Bakos et.al 2 has underlined the importance of EDI in market place in his research paper. According to him, information system creates what is called as electronic market place as it serves as a medium between buyers and sellers. He put forward the impact of EDI as reduction of search costs that buyers must pay inorder to obtain the information of the product which in turn plays a major role in determining the implications of these systems for market efficiency and the competetive behaviour which it brings in. Craig et.al 3 in their research has cited the importance of Using of electronic data interchange for supply chain coordination in the food industry. They have focussed on EDI to be used for interorganizational information transfers in the supply chain. They have come up with a survey which examines the food industry data on its usage of electronic data interchange with respect to interfirm coordination activities involving both suppliers and customers. The research suggests that different organization view EDI as a tool for improving efficiencies rather than as a tool for facilitating supply chain integration. There is also a wide difference in firms use of EDI with customers and suppliers. Most of the firms tend to accommodate desires of their customers than of their suppliers. David et.al 4 researched on the impact of electronic data interchange on purchasing and how it has revolutionalized the supply chain management sector by examining major EDI elements which links Organizational Systems. They proposed a framework for describing EDI components and how each component plays a different role in different areas of an organization. The framework they proposed with their work is result of detailed analysis of application of EDI in manufacturing, service operations and retail sector. Their study concluded that Electronic Data Interchange has a significant positive impact on purchasing. The research has concluded that electronic Data Interchange has accelarated the time constraint in the purchasing of goods, reduced the time to a greater extent. It reduced the time in the transferring of information between the trading partners when purchasing products or goods. In addition, Electronic Data Interchange has enhanced purchasing of goods and purchasing of goods and products through this channel of EDI proved more secure compare to other ways and methods of purchasing. Benson et.al 6 went on with a investigative study on EDI in logistics at Nas Hauliers, Rwanda. Study was done aiming to, 1) examine extent of management support in the application of EDI systems at Nas Hauliers; 2) To investigate ICT objectives in the success of EDI application at Nas Hauliers; 3) To investigate the organisational culture in the success of EDI application at Nas Hauliers and 4) to examine resource availability in the success of EDI application at Nas Hauliers. The study spanned over a group of 350 employees. This group of 350 employees were the EDI end users of the company. Than the management perspective of importance of EDI, the study focussed more on the end users. The study revealed that the Logistic sector should invest in training and development of staff on skills needed in proper EDI application processes as this will lead to increasing the productivity of staff which will in turn ensure logistics efficiency. Jan et.al 7 has come up with a study on EDI and role of intermediate institutions in diffusion of EDI, i.e. how EDI has provided means of communication between organizations in supply chain front and importance of a advanced Information Technology in this area. The study concentrated on Intermediating Institutions which they have defined to be non private organizations, in general, like industry associations. The primary function of these organizations is to coordinate various activities of a group of would-be adoptors of EDI. According to the author, these kinds of intermediateries shape the EDI diffusion trajectory. Also the theory framed six institutional measures for successful diffusion of EDI. The main factor contributing to this is involvent mode (influence vs. regulation) and diffusion force (supply push vs. demand pull). These factors has a critical role to play in building of knowledge, deployment and standard setting. Paul et.al 8 underlines the importance of power and trust of large organizations as a major factor in electronic data interchange implementations. The most powerful companies can influence their business partners to adopt EDI. But power can be exercised in different ways. As computer networks provide the outside world with more readily available information, its use makes organizational boundaries more permeable. When companies use coercion to force business partners to adopt EDI, less powerful partners may be more vulnerable. In addition, over time, this perceived vulnerability has become a limitation of the relationship between organizations and has impeded improving coordination through the expanded use of electronic data interchange. On the other hand, when the adoption of EDI is seen as an opportunity to build and strengthen trust between companies, these relationships can support organizational change related to the use of EDI (for example, restructuring business processes or new distribution models). and improve interorganizational coordination. The role of power and trust in electronic data exchange is of great importance for interorganizational theory. Their role can be of particular help in understanding technology, and in particular how electronic media supports the company’s strategic alliance to promote common goals. Patrick et al. 9 conducted a large-scale study of the key factors influencing the use of EDI in small and medium-sized enterprises (SMEs). The study put forward and then tested a research model consisting of seven factors, namely, innovation characteristics, organizational background and external factors. These factors were compared with 644 SMEs data. Experimentation was done using Logistic regression analysis. The study concluded that the key determinants of the application of EDI for small- and medium-sized enterprises are cost perception, direct earnings,  government incentives and enforcement, knowledge of information technology, and the impact of business partners. From all the citations above, it is evident that EDI application brings in many benefits to an organization and its business strategy. EDI Technology however, cannot guarantee the success of a business in all conditions. The success rate depends on many factors. As cited in the research work done by Benson et.al 6, a company needs to invest even in training  or popularizing on EDI among their end users and employees for a complete success. This calls for a well planned and executed EDI implementation and application process is necessary for the successful adoption of EDI to any organization to run their business.1 White Paper – Electronic Document Exchange – Mike Bridges 19992 A Strategic Analysis of Electronic Marketplaces – J. Yannis Bakos, Vol. 15, No. 3, Sep 1991. Journal Article MIS Quaterly.3 The Use of Electronic Data Interchange for Supply Chain Coordination in the Food Industry, Craig A. Hill, Gary D. Scudder, Article in Journal of Operations Management 20(4):375-387 · August 20024 The Impact of Electronic Data Interchange (EDI) on Purchasing: a Case of Midgal Product Ltd, Oba Abimbola Aina – David, Odunmbaku Aliu Ajani & Olatunde T. Sanusi, International Journal of Entrepreneurial Development, Education and Science Research, Hard Print: 2360-901X Online: 2360-9028, Vol. 4, No. 1 January 2017.5 Aaron, R., Decina, M. & Skillen, R. (1999). Electronic commerce. Enablers and implications, IEEE Communications Magazine 37 (9) 47 – 52. 6 Application of Electronic Data Interchange in Logistics: A Case of Nas Hauliers, Rwanda, Benson Mugambi Njoni, Schola Semutwa, Morris Gitonga Mbaabu, Job Onyinkwa Osoro, Journal of Logistics Management, 2016;  5(2): 39-47.7 The Role of Intermediating Institutions in the Diffusion of Electronic Data Interchange (EDI): How Industry Associations Intervened in Denmark, Finland, and Hong Kong, Jan Damsgaard, Kalle Lyytinen, Pages 195-210, 29 Jul 20068 Power and Trust: Critical Factors in the Adoption and Use of Electronic Data Interchange, Paul Hart, Carol Saunders, 19979 Adoption of Electronic Data Interchange in Small and Medium-Sized Enterprises, Patrick Y. Chau, and Cathy C. Jim Journal of Global Information Management (JGIM) 10(4), 2002

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