Information Technology

• Networked Computer Systems– Linking individual computers to

create an organizational network for communication and information sharing.

Information Technology (cont’d)

• E-mail• Instant messaging• Voice-mail• Fax machines• Electronic Data Exchange (EDI)• Teleconferencing• Videoconferencing

Information Technology (cont’d)

• Types of Network Systems– Intranet

• An internal network that uses Internet technology and is accessible only to employees.

Information Technology (cont’d)

• Types of Network Systems– Extranet

• An internal network that uses Internet technology and allows authorized users inside the organization to communicate with certain outsiders such as customers and vendors.

– Wireless capabilities

Information Tools for Commerce Automation

• Bar Code• RFID• EDI• EOS• VAN

Bar Code

The Basis of Commerce AutomationThe Basis of Commerce Automation

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Bar Code

Radio-Frequency Identification (RFID)

• An automatic identification

method, relying on storing and

retrieving data using

RFID tags

• Some tags can be read from several meters away and beyond the line of sight of the reader.

RFID tag used by Wal-Mart

Applications of RFIDParking Lots

POS

Library

Container Hospital

Property

Pallet

Baggage

Billing system

Automation

Warehouse

Management

Electronic Data Interchange (EDI)

• is the computer-to-computer exchange of

information between two or more parties,

known as Trading Partners. 

– Examples of Trading Partners:• Vendors (Producer), Retailers, …

Commerce EDI System

Electronic Ordering System (EOS)

• Electronically connect to business,

increase the accuracy of data across to

ordering process.

• Improve efficiency

• automate processes

• Reduce operating expenses.

Value Added Network (VAN)•  A VAN allows computer-to-computer transmission of bu

siness documents between organizations with computer systems and document formats. 

• Benefits:

– Receives, stores, forwards messages

– Adds audit information to the messages

– Modifies the data (automatic error detection and

correction, protocol conversion) and then transport

the information.

Benefits of Information Technology (IT)

– Increased ability to monitor individual and team performance

– Better decision making based on more

complete information

– More collaboration and sharing of information

– Greater accessibility to coworkers

Benefits of Effective and Efficient Use of Information

• Replacement of inventory with information

• Reduced variability in the supply chain

• Better coordination of manufacturing,

marketing, and distribution

• Streamlined order processing and reduced

lead-times