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

Information engineering (IT) can be viewed as a pecuniary drain on a phoner since it is a ample investment that requires justification. Previous studies have not been equal to(p) to accurately pay back information that would lead to a valuable return on investment (ROI) beca procedure of the complexness of the technology. The necessary factors had not been interpreted into account. Factors like the quality of the excogitation of a system and the space of time entropy had been collected. A tuition was conducted that was dedicated to i particular technology, EDI, because of the rise in use of it by salient companies. It was also one technology that had been in use ample enough to obtain a large amount of data over a long period of time. Two students of the Graduate discipline of Industrial system at Carnegie Mellon University, Tridas Mukhopadhyay and Sunder Kekre; and Suresh Kalathur who is employed at Cimnet Systems, Inc. in Illinois, sought-after(a) to establish more accurate formulas in calculating a more effective ROI for EDI and engender their bringings available for management to make more informed decisions. The researchers chose Chrysler Corporation to use in the study because the company had been using EDI for the last 10 years.

This gave the researchers over a decade of data to use to find out if the company had achieved its goal of reducing the cost per fomite by 30 percent. After Chrysler had outsourced their component and subassemblies, they were still experiencing issues with communication theory with suppliers and their prevarication plants. EDI was brought in to change material flows and implement JIT practices to stifle bl ood levels and the need for rush deliveries ! (Mukhopadhyay, et al, 1995). The data integrity was challenged and bonny high-priced to the company. The theory behind the study is that EDI should... If you want to set gain a full essay, order it on our website: OrderEssay.net

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