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Related Experiment Videos

Organizing for EDI.

M L McLure1, J J Moynihan

  • 1McLure Moynihan & Associates, Sherman Oaks, CA.

Healthcare Financial Management : Journal of the Healthcare Financial Management Association
|December 9, 1994
PubMed
Summary

Implementing electronic data interchange (EDI) involves significant nontechnical challenges, with human costs like training making up 90% of expenses. A strategic approach is crucial for managing these organizational aspects of EDI initiatives.

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Area of Science:

  • Business Management
  • Information Systems
  • Organizational Behavior

Background:

  • Electronic Data Interchange (EDI) implementation presents significant challenges beyond technical aspects.
  • Nontechnical issues, particularly organizational factors, are often underestimated in EDI projects.
  • The human element, including education and training, constitutes a substantial portion of EDI costs.

Purpose of the Study:

  • To highlight the critical role of nontechnical and organizational issues in EDI implementation.
  • To emphasize the high cost associated with the human element in EDI projects.
  • To advocate for a strategic approach to managing organizational challenges in EDI.

Main Methods:

  • Analysis of cost components in Electronic Data Interchange (EDI) implementation.
  • Review of organizational factors impacting technology adoption.
  • Literature synthesis on change management in business processes.

Main Results:

  • Nontechnical issues, such as organizational dynamics, are more complex and costly than technical EDI challenges.
  • Human costs (education, training, management) account for an estimated 90% of total EDI implementation expenses.
  • Successful EDI adoption is contingent upon effectively addressing organizational hurdles.

Conclusions:

  • A proactive strategy for managing nontechnical, organizational issues is essential for successful EDI implementation.
  • Investing in human capital through training and education is paramount for mitigating EDI project risks.
  • Organizational readiness and change management are key determinants of EDI initiative success.

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