EDI is a business technology which permits organisations and their business partners to electronically exchange business data directly between their computers without the need for human intervention. EDI was first developed for its inherent economies such as improved efficiency, error and cost reduction. However, the real benefits emerged in other and far more significant areas, particularly in reduced requirements for stockholding and marketing improvements through better service and stronger customer ties. The improved cost base and the exploitation of the new up-to-date information flows led to competitive edge advantage. This advantage was often temporary until the competition caught up, but it created a new situation where access to the technology became a prerequisite for survival. EDI also creates new business opportunities. Success came quickly, particularly where dominant organisations made EDI a pre-condition of future business and forced their suppliers/partners to accept their (proprietary) technology. More co-operatively, many industry sectors came together to establish community systems and developed their own industry specific standards. Problems arose when companies wished to electronically communicate across industry boundaries. To solve this problem, two leading countries, US and UK, developed their own national standards. Next, as a solution for all the problems of proprietary, industry specific and national standards, the United Nations approved a universal standard - EDIFACT, but it is estimated that it will be at least the mid 1990s before it has general adoption. In addition, most networks do not interconnect forcing users to join two or more competing services. There are many technical and other issues which impede its growth, these include availability of software packages, security issues, legal considerations, change of business practice and most of all, lack of awareness among managers. Growth of EDI is very rapid, annual increases of 80% are common. It has now become a trading norm in many sectors and countries. Most of Ireland's trading and competition countries are in this category. Many Governments have recognised EDI's benefits and have established programs for its promotion. Deregulation of the telecommunications environment is seen as essential. As for a company or an industry sector, EDI can create a national advantage. Uptake of EDI in Ireland is very low and awareness of it is among the lowest in the EC, despite the fact that there are a number of advanced individual projects and companies. EDI is of critical relevance to Irish foreign trade and transport and it is in these sectors that key cost reductions have been identified. EDI can also help to alleviate the peripheral disadvantages of Ireland's location. While its use is a positive factor its non-use will lead to very serious disadvantages. Ireland's telecommunications infrastructure for EDI is among the best but we have not created the climate for developing value added services of which EDI is a leading one. The role of Government is very unclear and while some good positions have been adopted, some policies are contradictory and some State services are seen as anti-market and protective of existing vested interests. EDI is already a most important strategic issue at company, industry and national level. It will, however, become even more important as it integrates with the revolutionary developments in the whole area of telecommunications technology on which future economic advancement and job creation opportunities depend. There is a clear need for national coordination and promotion of such an important business tool by both Government and business working together.