Opportunities And Challenges In EDI Applications In Financial Markets | M. Thenmozhi & R. Shanthi

The traditional business environment is changing rapidly as customers and businesses seek flexibility to change trading partners, platforms, carriers and network at their will. Competitive advantage was once based on structural characteristics such as market power, economies of scale or a broad product line. Today, the emphasis has shifted to capabilities that enable a business to consistently deliver superior value to its customers through better co-ordination and work force management, product and service customization and supply chain management. The developments in information technology such as EDI and information super highway will enable the business to exchange information among constantly changing sets of customers and suppliers on a global basis and thereby deliver more value to customers. It will become a powerful business tool that no organization can do without. The application of EDI has extended to all trade and trade related activities. But firms and financial institutions view the I-way with a mix of eagerness, fear and confusion. However, the development of the financial market is highly dependent on the use of EDI, particularly in the stock markets, banking sector and insurance sector operations. Hence, this paper attempts to examine the application of EDI in financial markets, particularly, banking sector, stock markets and insurance sector. The opportunities and threats inherent in the application of EDI and challenges ahead are discussed.