1. Information Technology & Knowledge Management17
Information Technology & Knowledge Management

2. Evolution of IT
First line management is typically concerned with well defined problems about operational issues and past events
Top management on the other hand is concerned with uncertain, ambiguous issues, such as strategy and planning
First step in this evolutionary process was based on the notion of machine room efficiency – current operations could be performed more efficiently with the use of computer technology
From these Transaction Processing Systems, data would be stored in databases
Recent advances are Data Warehousing (use of huge databases that combine all of a company’s data and allows users to access the data directly, create reports, and obtain responses to what-if questions
Data Mining software's help make sense of all this data
MIS provides information and support for managerial decision making. Its types include Information Reporting System and Executive Information System
A Decision Support System provides specific benefits to managers at all levels of the organization

3. IT as a Strategic Weapon
This is the highest level of application
Strategies can be refined through better internal and external data collection and analysis techniques
Internal applications include networking, intranet, enterprise resource planning
ERP systems collect, process, and provide information about a company’s entire enterprise, including order, processing, product design, purchasing, inventory, manufacturing, distribution, etc.
Extranet
E-commerce

4. Strategic Use of IT Low-Cost Leadership & IT
Operational efficiency (ERP)
Interdepartmental coordination
boundaries dissolving between departments and organizations
Rapid resupply
business tied with suppliers through computers, EDI
Automotive Network Exchange (ANX)
It is a virtual private network that allows companies in the auto industry to transmit EDI data over the web

5. Strategic Use of IT Differentiation & IT
Lock in customers through computers on which the customers place orders directly
Improving customer services with IT
New product development