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Role of Electronic Data Interchange Implementation in the Increase of Performance of a Small-Medium Company - Research Proposal Example

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The paper "Role of Electronic Data Interchange Implementation in the Increase of Performance of a Small-Medium Company" highlights key issues in regard to the modes of use of EDI by Chinese firms; the strengths and weaknesses of EDI and solutions to be suggested for the improvement of EDI’s performance in the specific country.
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Role of Electronic Data Interchange Implementation in the Increase of Performance of a Small-Medium Company
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Download file to see previous pages Electronic Data Interchange (EDI) can be quite important for the development of business activities – offering to the businesses the chance of exchanging important data with their business partners; in this way, valuable time for the completion of a series of transactions is saved. An important advantage of EDI is the fact that firms of all sizes can use it. In small firms EDI can be particularly valuable especially because of the limited number of the workforce; in small firms, EDI can help to reduce the time and increase the quality of their daily transactions. However, the specific scheme requires the use of advanced technology – the cost of which can be high. In countries like China, EDI could be difficult to be introduced in small firms – mostly because of its cost. Therefore, it would be necessary that the government fund the relevant schemes – either totally or just partially. The benefits that EDI could offer to the small firms – either in the short or the long term - in China could justify the necessity of such investment. Research Question
The current study focuses on the examination of the following question: How Electronic Data Interchange can help firms of all sizes in China to increase their performance? In answering the above question the following issues need to be taken into consideration: it is necessary for the relevant process to be carefully planned and monitored in order to avoid major failures. Moreover, for the small-medium firms of China, EDI would be an important tool for stabilizing their performance; however, the potential of these firms to respond to the needs of such a plan would be further explored. The study’s aims and objectives can be summarized as follows:
  1. To identify and present the main aspects of EDI as a strategic tool for the improvement of organizational performance.
  2. To identify and critically analyze the strengths/ weaknesses of EDI and its requirements – in terms of technology but also in terms of organizational environment/ strategic framework.
  3. To identify the operational forms and needs of small-medium firms in China – ensuring that EDI could help these firms to improve their performance.  
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