Benefits

Re-engineering the system Cost benefit analysis of the current IT system The organisation can compare the cost of updating the system with the cost of discarding and replacing it. Consider – cost, quality, speed and service of the system. Measure the benefits- increase in productivity = increase in profit and efficiency.

Productivity gains Range of automated manufacturing processes and developments in customer support. Initial outlay – very high however = Large productivity gains Robots and machinery can be operational 24 hours, 7 days a week.

Productivity is usually constant and the organisation can therefore rely on the amount and quality of work the machinery will carry out. Productively predictions can be made with more accuracy. The only contingency would be maintenance and upgrading of machinery.

Cost reduction Cost of automated services is less than the cost of staff Low overheads if you are operating solely online. Developments in technology have led to smarter ways of working = less wastage, consistency in quality and increased productivity

Electronic Data Interchange EDI – process orders, take payment for the product and inform the accounts system. Identify if the item is in stock, reduces the current stock level by the number that is ordered and has the ability to re-order stocks automatically when levels become low.

Management Information MIS can monitor the stock of components and maintain the flow of productive. Sales invoices can be generated swiftly and accounts reconciled to provide an up to date picture of the state of the organisation. This results in smarter pricing and services to remain competitive.

Synergy and integration of systems Compatibility of old and new systems. Different versions of software- documents cannot be opened. Various storage facilities –USB – CD drives – Floppy disc drives. Integrated systems need to work in harmony if efficiently is to be maintained