EDI VANs, like the Railroad, Need an Upgrade

Posted by Margaret Dawson on August 18, 2010

On eCommerce Best Practices (ec-bp), Ken Kinlock attempted to provide an easy definition of a VAN, analogizing a VAN with the railroad system. I love the fact that he chose a non-IT subject as a comparison, and I think he did a good job defining the role and technical capability of an EDI VAN provider.

And in fact, I think the analogy is fitting in other ways, as both represent traditional commerce and channels that no longer address the needs of today’s real-time commerce environment. At one time, the railroad served as the bloodline of our country’s commerce and transportation system, ensuring goods were delivered on time across vast geographies. EDI VANs played a similar role, helping companies exchange information across systems and geographies.

But today, goods are transported via multiple channels, with most companies and consumers selecting the fastest method possible. While trains are still a vital transportation link, they often don’t provide the agility or immediacy many companies need to conduct business and exchanges goods. The same is true with EDI VANs – the traditional point-to-point mailbox delivery system does not allow for the on-demand information exchange of the Internet era. Companies need real-time processes like eCommerce Punchout or Price & Availability calls.

Hubspan was founded in 2000 specifically because we saw a need for more flexible, scalable, real-time business collaboration that allowed for many-to-many exchanges across any system by leveraging the Internet (what we now call “cloud”). Rather than the hub and spoke VAN model, Hubspan’s cloud-based integration platform is more like a vast web that creates business community networks whose members are communicating and exchanging information in real time, while all working from existing applications, systems, and business processes.

As Ken says in the article: The VAN is essentially a giant virtual switchboard where data is shunted from one participating company to another, just as the rail system is essentially a giant virtual switchboard where freight is shunted from a participating shipper to a customer.

I believe the days of “data shunting” are over, and what companies need is dynamic information exchange over the cloud. And yeah, I’m bias, but it just makes sense. Btw, if you agree and would like to trade in your VAN for real-time business process integration, click here.