The future of electronic data interchange technology has seen some negative predictions, with some forecasters believing the technology will phase out in favor of other technologies. However, current EDI trends for 2023 predict that the technology is here to stay. As essential software in B2B communications for large and small businesses, the EDI market is likely to grow. We’ll go over some of the forecasted trends for EDI to give you a clearer picture of the coming years.
Small and Medium-Sized Business See Growth With EDI
Some people may wrongly assume that EDI technology is exclusively for large companies. The reality is that many small and medium-sized businesses have utilized EDI integration with positive results. This is especially true of small businesses looking to grow or conduct business with large corporations.
In order to keep up with the technology that large corporations use to conduct transactions, smaller businesses need EDI integration to smoothly handle these processes. Additionally, small businesses have limited resources, so having technology that can help automate processes and become more efficient is important. In this way, small businesses won’t have to rely as much on human resources, which can often slow down the workflow and cost a lot of time and money.
More Business Are Turning to EDI Outsourcing
For small and medium-sized businesses, having an internal employee to handle all the EDI responsibilities can be a financial drain. This is also a time-consuming role that can be challenging to fill. Skilled EDI employees are in high demand, but there are few professionals available to fill roles. Even for larger companies, having internal EDI employees may prove to be challenging.
Instead, more businesses are turning to outsourcing for their EDI integration needs. Businesses can hire an outside source to manage all or some of their EDI responsibilities. EDI outsourcing businesses offer a cost-effective way for small and medium businesses to grow and conduct transactions with larger corporations. Using an outside source to set up EDI solutions for your business is often the quickest way to implement this change. Plus, it’s convenient for all types of businesses, as EDI work can be done remotely.
The Healthcare Industry Continues to Be Reliant on EDI
Healthcare is a large and booming industry that continues to rely on EDI software for communication needs. EDI has become one of the most solid and reliable communication methods over alternative technology for the healthcare industry. Because data privacy for patients is crucial, healthcare providers need EDI software in order to remain HIPPA compliant. Even as HIPPA regulations have continued to evolve and expand, EDI has remained a reliable technology method for the healthcare industry.
EDI and API
Some people have predicted that API technology will fully replace EDI. Some experts have touted API technology as faster and more cost-efficient than EDI, making it the superior choice over EDI. However, new trends show that EDI and API work best when paired together. The two technologies have different strengths and weaknesses, which means they work best when they are used jointly. In an ever-changing technological landscape, integrating EDI and API capabilities alongside each other is the best approach for businesses. In this way, businesses will be able to stay competitive with rising industry standards.
EDI and PEPPOL
EDI is expected to continue to grow in the coming years. In the EU, governments have adopted PEPPOL (Pan European Public Procurement Online), an EDI protocol. With this protocol, companies and businesses can streamline processes, standards, and requirements. Essentially, this protocol makes adopting EDI technologies less complex. As more organizations implement EDI technologies, PEPPOL will help make the onboarding process more efficient.
Though some people suggest that EDI technology might become obsolete in the future due to new technologies, current 2023 trends indicate that this is not the case. EDI trends show that this technology is an invaluable tool for small businesses to large corporations. Plus, new technologies like API work best when used alongside EDI instead of replacing it altogether. Businesses use EDI integration capabilities to streamline processes and make communication more efficient and up to industry standards. However, more businesses are realizing that outsourcing their EDI responsibilities is often the most practical solution to save time and money. If you’re looking to outsource EDI needs, get in touch with a member of our team to discuss solutions.