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What is the difference between API and EDI?

Published in Data Integration 3 mins read

The fundamental difference between API (Application Programming Interface) and EDI (Electronic Data Interchange) lies in their architectural approach, communication style, and primary use cases. APIs generally offer real-time data exchange and integration, while EDI often involves batch processing of business documents.

Here's a more detailed breakdown:

API (Application Programming Interface)

  • Purpose: APIs are interfaces that allow different software applications to communicate and exchange data in real-time. They define methods and data formats that applications can use to request services or data from each other.
  • Communication Style: Typically uses synchronous, request-response communication. This means that one application makes a request, and the other application responds immediately.
  • Data Exchange: Often uses structured data formats like JSON or XML for data exchange.
  • Real-time vs. Batch: Primarily designed for real-time data exchange and integration.
  • Flexibility: APIs are generally more flexible and adaptable to changing business needs. They allow for granular access to data and services.
  • Example: A weather API allows an application to retrieve current weather conditions for a specific location in real-time. E-commerce websites often use payment gateway APIs to process credit card transactions.
  • Technology: Relies on modern internet protocols like HTTP/HTTPS.

EDI (Electronic Data Interchange)

  • Purpose: EDI is a standardized format for exchanging business documents (e.g., purchase orders, invoices, shipping notices) between trading partners.
  • Communication Style: Traditionally uses asynchronous, file-based (batch) communication. Documents are exchanged in batches at scheduled intervals.
  • Data Exchange: Employs highly structured, standardized formats like ANSI X12 or EDIFACT.
  • Real-time vs. Batch: Primarily designed for batch processing of business documents.
  • Flexibility: EDI can be less flexible due to its rigid standards and the need for all trading partners to adhere to the same format.
  • Example: A retailer sends a purchase order to a supplier in X12 format. The supplier receives the purchase order, processes it, and sends back an invoice in X12 format.
  • Technology: Can use various communication protocols, including AS2, FTP, and VANs (Value-Added Networks).

Key Differences Summarized

Feature API EDI
Purpose Real-time data exchange & integration Electronic document exchange (batch processing)
Communication Synchronous (request-response) Asynchronous (batch)
Data Format JSON, XML ANSI X12, EDIFACT
Real-time? Yes No (Primarily batch)
Flexibility High Low
Modernity Modern web technologies Legacy technologies

Conclusion

In essence, APIs are designed for real-time, flexible data exchange between applications, while EDI focuses on the standardized, batch-oriented exchange of business documents. Modern businesses are increasingly integrating APIs alongside EDI to achieve agility and streamline business processes.

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