Final answer:
As transactions using the company's EDI software increase, efficiency may initially improve but infrastructure scaling, increased costs, renegotiated contracts, security concerns, and better business intelligence also become important considerations.
Step-by-step explanation:
When a student asks about the effects of increasing transaction volumes using a company's EDI software, they are exploring the realm of business transactions and information systems. As the volume of transactions increases, several outcomes are likely. Initially, the efficiency in business communications and operations may improve due to the automated nature of EDI (Electronic Data Interchange), reducing manual intervention and errors. However, to handle higher volumes effectively, the EDI system may require scaling in terms of infrastructure and possibly increased costs related to maintenance and upgrades. It could also lead to renegotiated contract terms with EDI service providers or network vendors due to increased traffic. Monitoring system performance and addressing security concerns become more critical as transaction volumes grow. Higher volumes can also translate to larger data sets for analytics, resulting in better business intelligence and decision-making processes.