Systems powered by the Extensible Markup Language might someday prove to be the standard for information sharing between businesses, but not in the near future. The Extensible Markup Language (XML) is sometimes pitched as a better and less expensive way to trade e-commerce information than the stalwart electronic data interchange (EDI). But contrary to popular perceptions, XML can actually cost more than the systems many companies already have in place, and it isn�t clear that most of them need the extra capabilities that XML offers. The take-away: Until XML reaches scale, it won't be a good choice to replace proven EDI systems. Managers should make the most of their existing EDI systems while keeping an eye on XML�s progress.Has your company been McKinsey'ed?
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