What is required for Electronic Data Interchange (EDI) to function properly?

For Electronic Data Interchange (EDI) to function properly, a standard data format is essential. EDI relies on structured data that can be shared between different businesses and systems without human intervention. By utilizing a standardized format, organizations can ensure that the information transmitted is interpreted correctly regardless of the technology or systems used by the sender and the receiver.

Standard formats such as ANSI X12 or EDIFACT provide a common language that facilitates this exchange. Without these standards, there could be inconsistencies and misinterpretations of the data exchanged, leading to errors in transactions, delays, and inefficiencies in business processes.

In contrast, other options are not necessary for EDI to function. A physical delivery system does not apply to the digital nature of EDI, as it operates over electronic networks. Manual entry of data contradicts the purpose of EDI, which aims to automate processes and minimize the need for manual input. Lastly, a notary's approval is not relevant to the functional requirements of EDI, as legal validation is separate from the technical requirements for exchanging information electronically.