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Difficulty: HardInternet and Telecommunications in Business Communication

A financial and logistics firm headquartered in Lagos sets up an automated network system that enables its corporate clients' computer systems to directly exchange structured commercial documents, such as purchase orders, bills of lading, and invoices, in a standardized digital format without manual data entry or human intervention. Which telecommunication and business technology is demonstrated in this scenario?

  1. Electronic Data Interchange (EDI)Answer
  2. B
    Business-to-Consumer (B2C) e-commerce
  3. C
    Electronic Point of Sale (EPOS) system
  4. D
    Public Switched Telephone Network (PSTN)

Answer

Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) is an information technology tool that enables computer systems of separate business entities to transmit standard commercial documents electronically without manual data input, enhancing speed and accuracy in business communication.

Step-by-Step Solution

1
Analyze the business scenario
The scenario describes automated, computer-to-computer exchange of structured business documents (invoices, purchase orders) between corporate entities.
Identifying the key characteristics (computer-to-computer transmission, structured business documents, standardized format, lack of human intervention) isolates the specific ICT tool.
2
Evaluate telecommunication technologies against the requirements
Electronic Data Interchange (EDI) is specifically designed for structured, inter-company document transfer between automated systems.
Other options like retail payment terminals (EPOS), retail consumer sales (B2C), or legacy voice networks (PSTN) do not fulfill inter-organizational structured document transmission.

Key Concept

Electronic Data Interchange (EDI) in Inter-organizational Communication
Estimated Time:1m 30s
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Topics

Internet and Telecommunications in Business Communication

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