Management Information System (MIS) Practice Exam

Before the internet, how was secure communication of proprietary information facilitated in B2B commerce?

1. Enterprise resource planning

2. Cloud computing

3. Electronic data interchange

4. Supply chain management

The correct answer is: Electronic data interchange

Secure communication of proprietary information in B2B (business-to-business) commerce before the rise of the internet was primarily facilitated through electronic data interchange (EDI). EDI is a standardized method for exchanging business documents such as purchase orders, invoices, and shipping notices electronically between companies. This method provided a secure and efficient way to transmit sensitive information because it often used private, direct connections between organizations rather than public networks. By using EDI, businesses could reduce errors associated with manual input, speed up transaction processing, and ensure that proprietary information was communicated in a secure environment that adhered to specific protocols. Enterprise resource planning (ERP), cloud computing, and supply chain management are all important frameworks and technologies in business; however, they are not primarily focused on the secure transmission of data in the same way EDI is. For instance, ERP systems primarily help in integrating various business processes and managing business resources, while cloud computing refers to the storage and access of data over the internet. Supply chain management, while it encompasses the entire flow of goods and services, typically operates at a higher level of logistical coordination rather than the specific means of secure data exchange provided by EDI.