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Information Technology
• Networked Computer Systems– Linking individual computers to
create an organizational network for communication and information sharing.
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Information Technology (cont’d)
• E-mail• Instant messaging• Voice-mail• Fax machines• Electronic Data Exchange (EDI)• Teleconferencing• Videoconferencing
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Information Technology (cont’d)
• Types of Network Systems– Intranet
• An internal network that uses Internet technology and is accessible only to employees.
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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
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Information Tools for Commerce Automation
• Bar Code• RFID• EDI• EOS• VAN
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Bar Code
The Basis of Commerce AutomationThe Basis of Commerce Automation
471471: Taiwan (Country Code): Taiwan (Country Code)
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Bar Code
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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
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Applications of RFIDParking Lots
POS
Library
Container Hospital
Property
Pallet
Baggage
Billing system
Automation
Warehouse
Management
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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, …
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Commerce EDI System
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Electronic Ordering System (EOS)
• Electronically connect to business,
increase the accuracy of data across to
ordering process.
• Improve efficiency
• automate processes
• Reduce operating expenses.
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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.
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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
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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