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ADITYA KUMAR SINGH(09609040)

ABASH ANKUR SURANA(09609065)
NITIN GUPTA(06502928)
SADANAND OJHA(09609106u
 
 

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× A matter of serious concern for management today but has
enormous potential for improving the performance of an
organization.
i Recent studies of IT indicates two limitations:-
× IT is often treated as single factor.
× Cross-sectional or short time series.
i A longitudinal study was undertaken to overcome
such limitations i.e. M
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i 6tudies which have little or no impact on firm¶s

performance:-
× Productivity impact of IT in manufacturing sector.
× Productivity of information and production workers.
i 6tudies which show positive impact on firm¶s
performance:-
× Classified IT in three categories based on management goals.
× Two stage analysis of intermediate & final output variables.


 
   
 
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i The overall findings of the four studies did not find strong
evidence of IT impact.
i Reasons for such results were:-
× àas to contend with two complex issues: measurement &
data as the IT impact can not accessed in isolation ,
confounding effects of other such as labor, non-IT capital.
× The complexity of teasing out the benefits & value
necessitates the use of rigorous scientific methods often
missing in prior work.


 
   
 
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i Three studies conducted to study the EDI impact -
× First at LTV 6teel on its EDI linkages with outside
processors.
× U.6. automobile manufacturer & its first-tier suppliers
report.
× A order processing system with EDI.
i Õut none of these revealed the business value of EDI as
each used cross-sectional data & failed to capture the
gain.


 
   
 
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i Launched electronic communication with few suppliers in

1969.
i In 1976, implemented an online receiving system to track
shipping information.
i EDI, launched in 1984, with 6upplier Delivery 6chedule
transaction to give precise shipping quantities to
suppliers electronically.
i In 1990, AN6I X12 standard was mandated and adopted
universally by assembly plant suppliers.


 
   
 
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i The 6

6 provided production

schedule information for a 10-day period.
i 6uppliers were given a long-term forecasts through
  6.
i Transmission of 6

  6 to
Chrysler assembly plants.
i Chrysler changed the 6 !" which
improved & simplified the planning & control functions
of route managers.


 
   
 
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i Improved information attempts to stabilize assembly line
production rate.
i Reduced uncertainty for inventory management.


 
   
 
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