Question

Hi-Volt Components You are the IT manager at Hi-Voltage Components, a medium-sized firm that makes specialized circuit boards. Hi-Voltage's largest customer: Green Industries, recently installed a computerized purchasing system. If Hi-Voltage connects to the purchasing system, Green Industries will be able to submit purchase orders electronically. Although Hi-Voltage has a computerized accounting system, that system is not capable of handling EDI.

Tasks

1. What options does Hi-Voltage have for developing a system to connect with Green Industries Purchasing system?

2. Would Hi-Voltage's proposed new system be a transaction processing system? Why or why not?

3. Before Hi-Voltage makes a final decision, should the company consider an ERP system? Why or why not?

Answer 1

1. Hi-Voltage in this context can actually think of some options among which implementation of EDI or Electronic Data Interchange is the best because it is difficult for organizations to cope without EDI as transactions are mostly real time today and virtual and hence upgrading to EDI or implementing the same will help the business organization in the same in order to remain competitive and sustain in the market.

2. Yes, EDI will also be a transaction processing system which will manage and handle real time transactions and make the process convenient in handling such transactions in a simple and better manner. The ability to transfer data fast and appropriately, the process makes transactions enabled to quite an extent.

3. Considering an ERP will be ok but it will be huge because implementation of ERP requires a lot of planning and proper executing and will also require capital to be invested but the process will be long term as it will sustain and help in other process as well in making the processes of the business in control. It would be better if the organization has the provision to implement ERP and if not they can upgrade to EDI.