Whenever an EDI solution is approaching its end-of-life date, there are a few options that an IT manager must decide upon. The first is determining just how long his or her company can last on its existing solution. The next – and most important - is finding the right software and company to migrate to.
While the idea of an EDI modernization project might seem overwhelming at first, the reality is the benefits gained from modernizing EDI allows enterprises to achieve better visibility and efficiency than existing and legacy EDI software ever could. On top of that, there are several reasons to modernize your EDI when a vendor isn’t putting any resources into a sunsetting EDI solution.
The Time to Modernize EDI is Now
How much is it going to cost an enterprise to modernize its EDI solution instead of paying out endless fines for a data exposure or breach? When an incumbent EDI vendor has started to put less into an EDI solution, the risks companies run for falling out of compliance just went up drastically. As soon as a trading partner has a new requirement or mandate, enterprises are much more likely to calculate costly fines.
Want to know just how costly data breaches are? The global average cost of a data breach in 2018 was $3.86 million, according to the 2018 Cost of a Data Breach Study: Global Overview from IBM Security and Ponemon Institute. Maybe your organization is equipped to handle a multi-million dollar hit like that. But let’s stay honest with each other, shall we?
The next element to to consider is what is an organization is supposed to do when something goes wrong. Because the legacy EDI solution is approaching end-of-life, there won’t be someone you can call anymore. Without that crucial ongoing support and product updates, companies are faced with software incompatibility, poor performance, and added exposure to increased SLA and security risks .
Additionally, with legacy EDI software, the more trading partners and customers that a company must onboard , the more different (and new) integration methods and formats that come along with them. Legacy EDI software simply doesn’t have the capabilities to handle all of those protocols. Modern EDI software has evolved to a point where no matter the standard or protocol that must be accepted, it ensures than an enterprise will be able to do so.
EDI formats are also changing, and inconsistent messaging formats will result in higher error rates and confusion. Without proper EDI capabilities that a modern EDI has, business communication suffers, and soon enough that enterprise that chose to rely on an outdated, legacy EDI solution is losing customers in a hurry.
End-of-Life Means New Beginnings for Your EDI
Anytime an organization undergoes a digital transformation, a modern EDI solution is central to success. Modern EDI provides flexibility that reshapes how companies use their technology to better interact with customers, trading partners , and other members of its digital ecosystem. EDI has been around for some time, but it has evolved, and in order to grow, companies must grow along with it.
Just because the sun has started to set on your EDI software doesn’t mean you have to scramble to figure out what to do next. The answer is a modernized EDI solution that puts you in a better position to grow your customer base and expand your organization. An EDI strategy is fundamental for success as a B2B company, and without the right platform in place, enterprises are going to find themselves getting left behind by the competition.