Information Technology Networked Computer Systems –Linking individual computers to create an organizational network for communication and information sharing.

Information Technology (cont’d) Instant messaging Voic 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 Automation 471: Taiwan (Country Code)

Bar Code

Radio-Frequency Identification (RFID) An automatic identificationautomatic 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-MartWal-Mart

Applications of RFID Parking 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 business 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