Friday, April 3, 2009

Impacts GTS has upon a company...

Positive:

The most important thing that SAP emphasizes about this software is that:
1) IT REDUCES THE COSTS OF THE COMPANY
2) LOWERS THE RISK THAT MIGHT APPEAR WHILE DOING BUSINESS GLOBALLY
These two important statements could increase the company’s ROI because of the following reasons:
a) By automating the trading process the company eliminates the paper manuals that were much more expensive than the software.
b) This software will insure the managers that they manage the complex system of global trade and that they end up meeting the regulatory requirements, all this through the main system as demonstrated by their demo.
c) Also it reduces the financial risk and maximizes the profits by avoiding supply chain agglomeration, downtime production; eliminate errors that could end up costly in the long run by implementing automated comprehensive letters of credit management.

Negative:


Although there are numerous positive impacts generated by such software, some drawback might also exist when implementing it.
1) Not all the company’s employees are, at this day, comfortable with using a computer, which might imply that if they are not warned in advance that with the company’s intentions of automation, they might reduce their productivity or even refuse to use the application.
2) Also, even though the business company might see a reduction in costs generated by the automation of the system, this cost that they just saved might go to the training of their employees on how to use the system. It’s an expensive process, for each Canadian employee that needs to be trained; the employer will have to disburse $2100. This might not be a huge sum by employee, but adding it up might consume all the savings that this process brought in the first place. YES, it is cheaper to automate the trading system, BUT (what SAP forgot to mention) it will be appreciated in the long run.
All of the above are given in more details on the SAP's official web site:
(http://www.sap.com/solutions/sapbusinessobjects/large/governance-risk-compliance/customers/index.epx)
http://www.sap.com/solutions/sapbusinessobjects/large/governance-risk-compliance/businessbenefits/index.epx
http://www.vnunet.com/vnunet/news/2238720/sap-launches-governance-tool

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