EDI software has been the standard in several industries for decades, and with more recent innovations in the data transmission market, many authorities believe it is on its way out. However, even as new technologies such as APIs evolve, EDI Software has remained a mainstay in B2B communications for several reasons – primarily because it gets the job done.
In the face of an ever-evolving technology landscape, it is important to assess EDI Software’s place in the supply chain and evaluate its potential for future development.
To better understand what’s on the horizon for this long-standing software, we asked several experts for their thoughts on the future of EDI Software trends for 2023 and beyond. Research expects the global EDI Software market to be worth more than $9 billion by 2030, with a CAGR of 9.6%.
Key things to Takeaway
- Larger companies prefer to handle EDI Software in-house.
- Newer technologies place higher demands on smaller businesses.
- Some experts believe that APIs will replace EDI Software, while others find that they work well together.
- An aging EDI Software market is leading to a shortage of relevant IT skills.
- The PEPPOL protocol can make EDI Software integration easier for businesses.
The future of EDI Software
Here are the top EDI Software trends to watch out for:
Large companies and custom processing
In the past, smaller companies integrated EDI Software through in-house processing but found the input costs somewhat high, causing them to opt for third-party EDI Software services that charge a few cents per order (or PO) rather than up front. costs. However, as companies grow, they may find that this option no longer works for them.
Some EDI Software companies are already trying to combat this shift. Many vendors are trying to change the way EDI Software is traditionally priced, by charging per relationship rather than per transaction or using a monthly subscription model. However, the payment structure is one of many reasons companies may want to go back to in-house processing.
He advises companies in this situation to find an EDI Software consultant who will help them navigate the market in the coming years.
EDI Software vs. API
Contrary to the view that APIs will replace EDI Software, IBM provides a somewhat different view: that APIs work best alongside EDI Software systems, not instead of them. According to them, while “EDI Software is ideal for batch processing of mission-critical transactions such as financial documents and periodic updates, APIs enable real-time data exchange for proactive decision-making to gain competitive advantage.”
This is a promising approach to document transfer. Rather than completely ditching one technology for another, integrating the best of EDI Software and API capabilities allows businesses to stay rooted in industry-standard technology they know works while expanding their capabilities to keep pace with a rapidly changing technology landscape.
PEPPOL and EDI Software integration
With this projected growth, what will EDI Software continue to support in the coming years? One trend that is developing in Europe is the EDI Software protocol Pan European Public Procurement Online (PEPPOL).
Companies register to become PEPPOL participants, which essentially means that they signal to other companies that they are ready to receive data in accordance with this protocol.
EDI Software remains the industry standard for supply chains and is used by at least 59% of companies. With up to 41% of companies still using manual data transfer, PEPPOL can help integrate EDI Software technology and strengthen its presence.
To Sum it Up
While more experts than ever believe that EDI Software is on the way out, some are finding that new technologies are complementing it well. Even as businesses adopt newer document and data transfer technologies such as APIs, EDI Software remains the industry standard for most companies simply because they know it works. However, concerns such as staffing, upgrading legacy systems and company size weigh on the EDI Software market as well. For more information, please contact us at Coding Brains.