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Published on February 24, 2014

Author: AkshayThakur


Whirlpool-ERP Case Study

Summary The case talks about the change of traditional pricing system of whirlpool in lieu of introduction of new model by LG to target the rural population. Also, how the new pricing system helps Whirlpool to increase the effectiveness of the overall operations and bring down its costs globally. The case shows how using an automated ERP can benefit an organization when compared to the traditional database maintenance system. Over here the advantage of ERP that has been highlighted upon is the quick updating of price throughout all the retail outlets on a go. Q & A: 1. How are companies using IT to improve services, lower costs and become more competitive? The biggest modification that the IT industry has helped any industry is the implementation of ERPs in various companies such that making the entire chain of the company integrated and online. IT helps in: Administration– It is done by having an ERP system which is integrated with all the departments having information about all the data and transactions in various departments. Manipulation of sensitive information – The important information is produced and then is sent to the concerned department through mail or inline transfers. Database Marketing - By examining customer purchasing patterns and looking at the demographics and psychographics of customers to build profiles, you can create products that will sell themselves Cultural development and communication – It also helps in communicating any change or improvement in the organization to the entire company. Streamlining of business processes– Any business will stand its value only if it keeps evolving over time and with the inclusion of IT the same could be

communicated to all the employees and personnel connected to the organization (vendors, suppliers etc.) at a very high speed. Call Detail Record Analysis - If a company depends upon telecommunications, then you can mine that incoming data to see use patterns, build customer profiles from these patterns and then construct a tiered pricing structure to maximize profit. Or you could build promotions that reflect your data. 2. What are the components associated with a successful information system? In a successful information system the following 5 components are mandatory: Hardware: The term hardware refers to machinery. This category includes the computer itself, which is often referred to as the central processing unit (CPU), and all of its support equipments. Among the support equipments are input and output devices, storage devices and communications and networking devices. Software: The term software refers to computer programs and the manuals (if any) that support them. Computer programs are machine-readable instructions that direct the circuitry within the hardware parts of the CBIS to function in ways that produce useful information from data. Programs are generally stored on some input / output medium, often a disk or tape. Data: Data are facts that are used by programs to produce useful information. Like programs, data are generally stored in machine-readable form on disk or tape until the computer needs them. Procedures:Procedures are the actions that are used by the people to process the data into information. Operating procedures are used to operate the computer, Data entry, Communication, Maintenance, Back up and error recovery. Emergency procedures are used to trouble shoot. People: Every CBIS needs people if it is to be useful. Often the most over-looked element of the CBIS is the people, probably the component that most influence the success or failure of information systems.

SWOT of Whirlpool Case Strength - strong brand presence Weakness - Company reputation & core competency - concentration in one category - less area coverage Opportunity - Diversification - Market presence Threats - Cheap substitutes - economic factors

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