ELI5: Explain Like I'm 5

Electronic Data Interchange

Electronic Data Interchange (EDI) is like a big secret language for computers that lets them talk to each other and share information without people having to do it all by themselves. It’s like how kids might make up their own secret words so no one else can understand what they’re saying.

When grown-ups want to send information from one company to another, they used to have to fax or email it, which took a really long time and sometimes made mistakes. But now, computers can use EDI to send information quickly and accurately. It can send all kinds of information, like orders, invoices, and payment details.

It’s like if you wanted to give your friend a message, but instead of running to their house to tell them in person, you could use a special secret phone that only you and your friend have. You say the message into the secret phone, and it gets to your friend super fast, without anyone else hearing it.

EDI is important because it helps businesses communicate and work together more efficiently. It’s like a big game of telephone, but with computers, so everyone gets the message right the first time.