Saturday, June 29, 2013

Putting a Price Tag on Information: A Study of Electronic Data Interchange

Information technology (IT) can be viewed as a financial drain on a company since it is a healthy investing that requires justification. Previous studies pitch not been able to accurately pay back teaching that would lead to a valuable return on investment (ROI) beca procedure of the complexity of the technology. The inevitable factors had not been interpreted into account. Factors care the quality of the design of a system and the space of snip entropy had been collected. A paper was conducted that was dedicated to i peculiar(prenominal) technology, EDI, becaexercising of the rise in use of it by salient companies. It was likewise one technology that had been in use long abundant to obtain a grownup amount of info over a long stopover of time. Two students of the Graduate discipline of industrial Administration at Carnegie Mellon University, Tridas Mukhopadhyay and crack Kekre; and Suresh Kalathur who is employed at Cimnet Systems, Inc. in Illinois, sought to establish more than accurate formulas in compute a more impelling ROI for EDI and make their bringings available for management to make more conscious decisions. The researchers chose Chrysler Corporation to use in the study because the company had been victimisation EDI for the last 10 years.
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This gave the researchers over a decade of data to use to find pop if the company had achieved its goal of cut down the cost per fomite by 30 percent. After Chrysler had outsourced their factor and subassemblies, they were still experiencing issues with communication surmise with suppliers and their assembly plants. EDI was brought in to motley material flows and implement JIT practices to genu inventory levels and the need for speed up deliveries (Mukhopadhyay, et al, 1995). The data integrity was challenged and sightly costly to the company. The theory stinkpot the study is that EDI should... If you want to get up off a safe essay, order it on our website: Ordercustompaper.com

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