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Unit 6: ERP Benefits
about the 30 percent annual turnover among sales personnel… Tabrez A., SoftGuide CEO, notes
responded that the SoftGuide’s data-processing was quite competent and has absorbed at
least one new product a month for two years.”
Questions
1. Why should SystemX be so concerned about the capabilities of SoftGuide’s data
processing?
2. What competitive advantages to a Training and Consultancy services company may
be provided by an information system?
Source: Himadri Barman, Centre for Management Studies, Dibrugarh University, Dibrugarh 786 004, Assam.
6.11 summary
l z Installing an EPR system has many advantages both direct and indirect.
l z The direct advantages include improved efficiency, information integration for better
decision-making, faster response time to customer queries, etc.
l z The indirect benefits include better corporate image, improved customer goodwill,
customer satisfaction and so on.
6.12 keywords
CAD: Programs that are used to create engineering drawings. CAD programs make it easy to
modify drawings. They also make it easier to keep track of material specifications. They can perform
spatial and engineering estimates on the designs, such as surface or volume calculations.
Decision Process: The steps required to make a decision. It includes problem identification,
research, specification of choices, and the final selection. Midlevel managers are often involved
in the initial stages and affect the outcome, even though they may not make the final decision.
Enterprise Resource Planning: An integrated computer system running on top of a DBMS. It is
designed to collect and organize data from all operations in an organization. Existing systems are
strong in accounting, purchasing, and HRM.
Product Flexibility: Product flexibility is the ability of the operation to efficiently produce highly
customized and unique products. Manufacturers tried to introduce some amount of flexibility by
using the assemble-to-order approach.
6.13 self assessment
Fill in the blanks:
1. The major benefits of .................... are improved coordination across functional departments
and increased efficiencies of doing business.
2. .................... is the time between placement of the order and delivery of the product.
3. In the earlier days, even for the made-to-stock items, the cycle time used to be ....................
4. .................... is a key issue in the formulation of strategic plans in companies.
5. ECO stands for ....................
State whether the following statements are true or false:
6. ERP systems are evolving to incorporate new technologies, such as E-commerce, data
warehousing, and customer relationship management.
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