Step 1 - EDI system organizational management structure development
To successfully deploy EDI, many companies often hire an EDI coordinator to manage the EDI program on a daily basis. Depending on the scope of the company's EDI project and the company's culture, a company will usually either hire someone with EDI experience, or develop the experience in-house. For large organizations with integrated EDI projects of a larger scope, a dedicated team of people to focus on EDI is usually needed. In these cases, additional Management Information Systems (MIS) people will be hired and given the full-time responsibility of working with the EDI system. When devoting a team to EDI responsibilities, the team should be divided to focus on two related, but separate issues. One group should focus on managing EDI implementation within the organization and cost benefit analysis, as well as education and training for EDI. The other group of MIS employees should evaluate EDI software and various network options, as well as focusing on management of EDI integration with internal systems. In addition to the MIS staff, employees in other areas of the business also need to take part in EDI implementation. Determining the number of people needed to efficiently run the project is one of the EDI coordinator's first tasks.
In order to make sure that EDI implementation develops in a manner that meets business needs, we recommend an organization form an EDI steering committee. This committee is led by the EDI coordinator and usually consists of department heads including purchasing and sales, the Director of MIS, as well as members who serve in advisory roles, such as legal. Deciding which area of the company should serve as the target of the first EDI application is one of the EDI steering committee's first tasks.
Gaining Support Across the Organization
When it comes to EDI implementation, one of the first and most important steps is obtaining the commitment and support of those in top management positions. Since the budget needed for implementing an EDI solution can be quite sizable, it is very important for companies, both small and large, to have full company backing before embarking on EDI implementation. Therefore, not only does the steering committee need to agree on financial decisions, it also must obtain support from each department head in the business since EDI impacts all areas of the organization.
If there is a positive case to be made for EDI, the one who needs to sell it to top management, functional managers and affected employees, is the EDI coordinator. EDI can dramatically change business processes and practices and rarely do people readily accept change. Therefore, to provide maximum benefits, EDI needs comprehensive support across the organization. To eliminate departmental obstacles that EDI is apt to encounter, obtaining the support of top management is critical. To obtain that critical support, the EDI coordinator must make sure that the cost benefits analysis is solid so that top management can understand how EDI supports key company strategies and will pay for itself.
Because the EDI system affects each area of business, it is also vital to obtain the backing of functional managers. Reserving room for functional managers to serve on the EDI committee plays a large part in obtaining their support. They then have a stake in a successful outcome of the EDI project. The way the cost benefit analysis addresses each department and its business, as well as how administrative issues such as legal, audit and accounting are addressed, is critical
To gain the support of employees who will be affected by EDI implementation, the employees themselves must understand EDI. While most employees do not trust EDI because they fear it will negatively impact job security, EDI often enables them to resolve problems. Additionally, the initial stages of EDI implementation are focused on building teams and support, rather than the design and deployment of technology.
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