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

Information technology (IT) can be viewed as a pecuniary drain on a company since it is a racy enthronement that requires justification. Previous studies obtain not been able to accurately pay back discipline that would lead to a precious return on investment (ROI) beca procedure of the complexity of the technology. The infallible factors had not been interpreted into account. Factors standardized the quality of the design of a system and the space of m entropy had been collected. A guide was conducted that was dedicated to i contingent technology, EDI, beca make use of of the rise in use of it by salient companies. It was similarly one technology that had been in use long ample to obtain a life-sized amount of information everyplace a long rate of flow of time. Two students of the Graduate discipline of industrial Administration at Carnegie Mellon University, Tridas Mukhopadhyay and rive Kekre; and Suresh Kalathur who is employed at Cimnet Systems, Inc. in Illinois, sought to establish to a greater extent accurate formulas in reckon a more telling ROI for EDI and make their bringings available for guidance to make more inform decisions. The researchers chose Chrysler Corporation to use in the study because the company had been employ EDI for the last 10 years.

This gave the researchers over a decade of data to use to find off if the company had achieved its goal of trim the cost per fomite by 30 percent. After Chrysler had outsourced their persona and subassemblies, they were still experiencing issues with communication guess with suppliers and their assembly plants. EDI was brought in to variety material flows and implement JIT practices to keep down inventory levels and the need for mission deliveries (Mukhopadhyay, et al, 1995). The data integrity was challenged and fair(a) costly to the company. The theory place the study is that EDI should... If you want to personate off a full essay, order it on our website: Orderessay

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