What is EDI?
EDI stands for Electronic Data Interchange. EDI emerged many years ago as a format to encapsulate data that needs to be transferred between businesses (B2B) as part of their transactions. This form of data interchange simplifies bulk data transfer between enterprises. Business documents such as invoices, purchase orders, etc., may be stored, transmitted, and processed efficiently using EDI format.
What is API?
API stands for Application Programming Interface. APIs were in use a long time ago as part of interfaces within a system, but Web-based RESTful APIs proliferated in a past decade for the standard ways of interacting with disparate systems. It allows for software programs to connect with each other and API acts as an interface between them.
Use of APIs in B2B context
APIs complement, rather than replace, traditional B2B technologies such as EDI and managed file transfer. Application leaders could use APIs to add new ways of initiating and setting up B2B flows, bring in efficiency through real-time services to enable faster B2B setup, enable automation and optimize their business ecosystem for digital business.
- Web APIs enable real-time integration, and this can help with bringing in efficiencies in initial B2B setup between trading partners. The partners may continue to use B2B for their business documents that already comply with industry standards.
- APIs provide a potential solution for areas that are often manual in nature, within a B2B process flow.
- B2B APIs provide new business channels through API monetization.