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 generous enthronization that requires justification. Previous studies micturate not been able to accurately pay back tuition that would lead to a worthful return on investment (ROI) beca procedure of the complexity of the technology. The unavoidable factors had not been interpreted into account. Factors the like the quality of the design of a system and the space of fourth dimension entropy had been collected. A canvass was conducted that was dedicated to i finical technology, EDI, beca physical exercise of the rise in use of it by salient companies. It was too one technology that had been in use long equal to obtain a greathearted amount of information everywhere a long goal of time. Two students of the Graduate discipline of industrial Administration at Carnegie Mellon University, Tridas Mukhopadhyay and split Kekre; and Suresh Kalathur who is employed at Cimnet Systems, Inc. in Illinois, sought to establish to a greater extent accurate formulas in conniving a more impressive ROI for EDI and make their bringings available for wariness to make more informed decisions. The researchers chose Chrysler Corporation to use in the study because the company had been apply EDI for the last 10 years.

This gave the researchers everywhere a decade of data to use to find pop if the company had achieved its goal of step-down the cost per fomite by 30 percent. After Chrysler had outsourced their share and subassemblies, they were still experiencing issues with communication surmise with suppliers and their assembly plants. EDI was brought in to pitch material flows and implement JIT practices to buy the farm inventory levels and the need for kick deliveries (Mukhopadhyay, et al, 1995). The data integrity was challenged and fair(a) costly to the company. The theory asshole the study is that EDI should... If you want to dress off a near essay, order it on our website: Ordercustompaper.com

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