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Chapter 2 It Infrastructure and Support Systems

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Chapter 2 IT Infrastructure and Support Systems
IT at Work
IT at Work 2.1
Western Petro Controls Costs with its Trade Management System
For Further Exploration:
Which processes are being automated and why?
PetroMan is a comprehensive trading system that triggers buying and selling activities and integrates contract management, risk management, accounting, and pipeline scheduler. Using the PetroMan, the company can place bids and automatically capture a contract for refined products; and schedule and confirm deliveries in pipelines. PetroMan also handles the resale of fuels, including electronic invoicing and a credit module that checks and tracks a customer’s credit risk. This tracking is done by hedging large purchasing contracts by selling futures on the New York Mercantile (Commodities) Exchange. By hedging, the company protects itself against the risk of a large drop in oil prices. The software is plugged directly into the primary commodity exchanges--automating the process.
Why is controlling risk important?
By hedging, the company protects itself against the risk of a large drop in oil prices. The software is plugged directly into the primary commodity exchanges--automating the process.
Does PetroMan provide Western Petro with a competitive advantage? Explain.
Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. Achieving Competitive Advantage strengthens and positions a business better within the business environment
The company operates on a razor-thin profit margin, so controlling purchasing costs determines profitability. Costs are controlled by using an industry-specific software platform that facilitates trading and helps schedule employees.
Visit sisugrp.com/petroman.htm. Why is PetroMan referred to as an enterprise information system?
An...

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