Information technology

Information technology (IT) is "the study, design,

development, application, implementation, support or
management of computer-based information systems,
particularly software applications and computer hardware",
according to the Information Technology Association of
America (ITAA).

Information technology is the use of computers and software

to manage information. In some companies, this is referred
to as Management Information Services (or MIS) or simply as
Information Services (or IS). The information technology
department of a large company would be responsible for
storing information, protecting information, processing the
information,transmitting the information as necessary, and
later retrieving information as necessary.

The Internet as well as the intranet (connecting the

workstations within an organization) and extranet (electronic
network among business partners, e.g., EDI) have
revolutionized the management of supply chains. The power
and flexibility of these networks offer businesses more
control over the flow of products, services and funds than
ever before. Dramatic results have been obtained from using
information to improve supply chain performance.

The Web has created a rare opportunity for organizations to

access global markets. It allows for mass customization,
stronger business relationships, a greater degree of channel
coordination, and enhanced communications with customers
and business partners.
 Role of Information Technology in
Logistics & Supply Chain

In the development and maintenance of Supply chain's

information systems both software and hardware must be
addressed. Hardware includes computer's input/output
devices and storage media. Software includes the entire
system and application programme used for processing
transactions management control, decision-making and
strategic planning. Recent development in Supply chain
management software is:

1. Base Rate, Carrier select & match pay (version 2.0)

developed by Distribution Sciences Inc. which is useful for
computing freight costs, compares transportation mode
rates, analyze cost and service effectiveness of carrier.

2. A new software programme developed by Ross systems

Inc. called Supply Chain planning which is used for demand
forecasting, replenishment & manufacturing tools for
accurate planning and scheduling of activities.

3. P&G distributing company and Saber decision

Technologies resulted in a software system called
Transportation Network optimization for streamlining the
bidding and award process.

4. Logitility planning solution was recently introduced to

provide a programme capable managing the entire supply
chain.
Electronic Commerce:
It is the term used to describe the wide range of tools and
techniques utilized to conduct business in a paperless
environment. Electronic commerce therefore includes
electronic data interchange, e-mail, electronic fund transfers,
electronic publishing, image processing, electronic bulletin
boards, shared databases and magnetic/optical data
capture. Companies are able to automate the process of
moving documents electronically between suppliers and
customers.

Electronic Data Interchange:

Electronic Data Interchange (EDI) refers to computer-to-
computer exchange of business documents in a standard
format. EDI describe both the capability and practice of
communicating information between two organizations
electronically instead of traditional form of mail, courier, &
fax. The benefits of EDI are:

1. Quick process to information.

2. Better customer service.
3. Reduced paper work.
4. Increased productivity.
5. Improved tracing and expediting.
6. Cost efficiency.
7. Competitive advantage.
8. Improved billing.

Though the use of EDI supply chain partners can overcome

the distortions and exaggeration in supply and demand
information by improving technologies to facilitate real time
sharing of actual demand and supply information.

Bar coding and Scanner:

Bar code scanners are most visible in the check out counter
of super market. This code specifies name of product and its
manufacturer. Other applications are tracking the moving
items such as components in PC assembly operations,
automobiles in assembly plants.

Data warehouse:
Data warehouse is a consolidated database maintained
separately from an organization's production system
database. Many organizations have multiple databases. A
data warehouse is organized around informational subjects
rather than specific business processes. Data held in data
warehouses are time dependent, historical data may also be
aggregated.

Enterprise Resource planning (ERP) tools:

Many companies now view ERP system (eg. Baan, SAP,
People soft, etc.) as the core of their IT infrastructure. ERP
system have become enterprise wide transaction processing
tools which capture the data and reduce the manual
activities and task associated with processing financial,
inventory and customer order information. ERP system
achieve a high level of integration by utilizing a single data
model, developing a common understanding of what the
shared data represents and establishing a set of rules for
accessing data.

Business to Business (B2B):

Information technology assists with electronic transactions
between businesses usually over the internet. Before the
internet, business to business transactions would take days
to complete. Transactions such as sales, ordering, or the
formation of contracts could only be done by either mail, or
the phone system, creating a very inefficient and costly
environment. Today, a mere click of a mouse is responsible
for generating billions of dollars in sales.

Business to Consumer (B2C):

Not only does Information technology assist B2B
transactions, it also allows consumers to participate in the
convenience of on-line transactions. A B2C transaction is
another type of IT which involves electronic transactions
between businesses and their customers usually over the
internet. A good example of a B2C is a company such as
Priceline.com which lacks a traditional office for consumers
to frequent, but instead has a website that initiates the
majority of its sales transactions.

Internet:
For those born on another planet, the Internet is a global
information system of computer networks that facilitates
communications and data transfers. The internet has
become one of the most common IT feature known in the
business world From sending e-mails to proposals, the
internet is one of the most inexpensive forms of IT that can
be utilized within an business.

Customer Relationship Management

(CRM):
Customer Relationship Management is software used for
managing interactions with customers as well as compiling
and analyzing customer data. CRM is a vital tool that
marketers use to help them identify target markets. For
example, CRM’s provide the type of demographic
information that exposed the fact retired senior citizens’ are
buying more convertible sports cars than hard top Cadillac’s.
Moreover, it is also used to assist in improving the
consumers buying experience.
Decision Support Systems (DSS):
DSS is an information program that assists managers in
making vital decisions. It includes quantitative modeling
components for what if analysis. The DSS system is an
accountant’s and finance analyst companion, it can also
provide use for a business manager.

Popular Information Technology

Skills:
Some of the most popular information technology skills at
the moment are:

• Computer Networking
• Information Security
• IT Governance
• ITIL
• Business Intelligence
• Linux
• Unix
• Project Management

Information technology (IT) refers to the management and

use of information using computer-based tools. It includes
acquiring, processing, storing, and distributing information.
Most commonly it is a term used to refer to business
applications of computer technology, rather than scientific
applications. The term is used broadly in business to refer to
anything that ties into the use of computers. Mostly
businesses today create data that can be stored and
processed on computers. In some cases the data must be
input to computers using devices such as keyboards and
scanners. In other cases the data might be created
electronically and automatically stored in computers. Small
businesses generally need to purchase software packages,
and may need to contract with IT businesses that provide
services such as hosting, marketing web sites and
maintaining networks. However, larger companies can
consider having their own IT staffs to develop software, and
otherwise handle IT needs in-house. For instance, businesses
working with the federal government are likely to need to
comply with requirements relating to making information
accessible. The constant upgrade in information technology,
along with increasing global competition, is adding difficulty
and hesitation of several orders of scale to the business and
trade. One of the most widely discussed areas in recent
business literature is that of new organizational network
structures that hold survival and growth in an environment
of growing complexity. Effective implementation of
information technology would decrease liability by reducing
the cost of expected failures and increase flexibility by
reducing the cost of adjustment. The businesses reaction to
the environment remains to be the vital determinant for its
effectiveness. The capabilities and flexibilities of computer-
communication systems make them gradually more
appropriate to businesses by being able to respond to any
specific information or communication requirement.
Information Technology is having impact on all trade
industries and businesses, in service as well as in
manufacturing. It is affecting workers at all levels of
organizations, from the executives to middle management
and clerks. Information technology is increasingly becoming
a basic factor of all types of technologies such as craft,
engineering, routine, and non-routine. The advances in
Information Technology would result in remarkable decline in
the costs of synchronization that would lead to new,
concentrated business structures. It enables the business to
respond to the new and urgent competitive forces by
providing effective management of interdependence. In the
near future businesses would be facing a lack and a
redundancy of information called information glut. To solve
the information-glut companies will need to introduce
methods for selective thinning out of information.
Improvements in telecommunications will make it easier to
control business units dispersed over different parts of the
world. Advances in telecommunications, would result in
increased distance-communication. Indirect communication
would be preferred for well-structured information for
routine, preprogrammed and decision processes.

Most of the Information technology management programs

are designed to educate and develop managers who can
effectively manage the planning, design, selection,
implementation, use, and administration of emerging and
converging information and communications technologies.
The program curriculum provides students with the technical
knowledge and management knowledge and skills needed to
effectively integrate people, information and communication
technologies, and business processes in support of
organizational strategic goals.