What is the smart component in SolidWorks and what's it used for?

What can I accomplish by using a smart component?

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http://help.solidworks.com/2012/English/SolidWorks/sldworks/Smart_Components.htm

Smart Components automatically put features into parts when you mate them into assemblies. They take a little bit to set up, but the results simplify a lot of repetitive modeling and external references.

 
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