The Apply Your Knowledge section contains four mini-cases. Each case describes a situation, explains your role in the case, and asks you to respond to questions. You can answer the questions by applying knowledge you learned in the chapter
Low-Voltage Components
Situation: You are the IT manager at Low-Voltage Components, a medium-sized firm that makes specialized circuit boards. Low-Voltage’s largest customer, TX Industries, recently installed a computerized purchasing system. If Low-Voltage connects to the TX system, TX will be able to submit purchase orders electronically. Although Low-Voltage has a computerized accounting system, that system is not capable of handling EDI.
1. Should Low-Voltage develop a system to connect with TX Industries’ purchasing system? Why or why not?
2. What terms or concepts describe the proposed computer-to-computer relationship between Low-Voltage and TX Industries?
3. Is Low-Voltage’s proposed new system a transaction processing system? Why or why not?
4. Before Low-Voltage makes a final decision, should the company consider an ERP system? Why or why not?
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