SystemX Inc. Withdraws Rs. 1 Billion SoftGuide Acquisition Offer. The following is an excerpt from a news article in the Daily Update, March 07, 2010. “SystemX Inc., called off its acquisition of SoftGuide Knowledge Consultants, Friday, saying that 1 Billion was too high a price.” (SoftGuide has a considerable market share in Training and Development services and would therefore help SystemX to diversify and expand its range of services to customers.)
“Although SystemX officials would not comment further, several observers said that problems discovered at SoftGuide probably lay behind the decision…. The article said that SystemX feared that SoftGuide’s data-processing system was inadequate to handle the new products planned for the SoftGuide sales staff. SystemX officials were also concerned about the 30 percent annual turnover among sales personnel. Tabrez A., SoftGuide CEO, respond
...ed that the SoftGuide’s data-processing was quite competent and has absorbed at least one new product a month for two years.”
Questions:
a. Why should SystemX be so concerned about the capabilities of SoftGuide’s dataprocessing?
- The System X should be concerned about the capabilities of Soft Guide’s data processing because it talks about big money to be risk. And another point is that they need assurance in the processes so that the main goal and success will be attained. It is not the 1 Billion that only matters, but the time and all the works to do is also a matter. They need security that it will all go to positive output.
b. What competitive advantages to a Training and Consultancy services company may beprovided by an information system?
- Information system is ver
useful in the Training and Consultancy services company. One, there’ll be an accurate guide and information gained from the process. Another point is that, with information systems we mean ‘Computerized information systems’ that tend to automate the work flow process within an organization and ensure a smooth flow of operations. They also help reduce the paperwork and improve the effectiveness of managers and an efficient usage of resources by reducing the input significantly and optimizing the outputs. Also, it is less cumbersome to automate the process of storing and retrieving the data virtually than maintaining enormous records in papers.
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