E-business and telecommunication networks

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When a common carrier such as a telecom company leases communication lines to a network provider and that provider then enhances those lines by adding additional services, it has created a Value Added Network. While EDI is the primary focus of VANs, the improvements or enhancements a network chooses to add is what differentiates networks. When it comes to sharing standard based or proprietary data, VANs make it easier for online businesses to share by becoming the one point of contact for them.

They then ensure all of the necessary information is shared with the intended receivers, reducing the number of direct contacts the business has to make on their own. Value-added networks act as the middle man between business entities and work in a system very similar to email. However, unlike email that transmits unstructured text, VANs are used to transfer structured, standardized data.

The Advantages of Using Telecommunication Systems in E-Business | Your Business

They are most often operated by larger companies such as telecom conglomerates but can also be operated by smaller firms. Companies are typically charged either a monthly fee or a per-character charge for VAN contracts. Whether an ecommerce enterprise is a new start-up or has a well established online presence, they undoubtedly have a variety of daily tasks that require communication between teams and companies. Sharing information and facilitating communication between companies, retailers and suppliers in real time is key for efficient supply chain management.

Telecommunications network

A value added network helps to simplify the process by securely facilitating communication and the sharing of data between trading partners. Reducing the number of parties a company needs to communicate with frees up time for managers, executives and online business owners to focus on other important details. With the proliferation of online commerce, businesses are presented with cost-effective supply chain management options. VANs have had to adapt to maintain a place in the ever-growing online business arena; they have done so by focusing on specific industries and expanding their range of services.

Enjoy the program and your stay in Porto. Francisco Xavier, Lote 7 Cv. Thomson Reuters. Ei Compendex.

E-Business and Telecommunication Networks

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