Integrate IT into business (Chapter9)

Transaction Processing, Functional Applications, and Integration.

 

The Business Performance Management Cycle and IT Model.

This is the 9th chapter in the textbook "Information Technology for Management: Transforming Organizations in the Digital Economy". I think I understand what this chapter is addressing, but sometimes, I have the feeling that I'm not fully understand the whole chapter. Let me try to present what I understand, then, from this sharing, we can tell whether I truly understand or not.

Some of the functional process in an organization are: accounting, finance, general management, human resources, production and maintenance. Functional Information System will supports these functional area in the organization.

Transaction Processing System (TPS) is one of the Functional Information System. TPS will helps in monitor, collect, store, process and disseminates information for all routine core business transactions. From this TPS, the organization can develop the strategy in term of what kind of product to be arranged on the shelf, what products that can be put in the same department, what kind of product that the organization need to offer in mass quantity at a certain time.

To summarize the chapter:

1. Information systems applications can support many functional activities. Considerable software is readily available on the market for much of this support (for lease or to buy)
2. The major business functional areas are production/operations management, marketing, accounting/finance, and human resources management.
3. The major area of IT support to production/operation management is in logistics and inventory management: Just-In-Time (JIT), mass customization, and Computer-integrated manufacturing (CIM).
4. Integrating applications is difficult; it can be done in different ways, such as buying off-the-shelf applications from one vendor or using special connecting software known as middleware. A promising new approach is that of Web Services.

I hope that we can get as much as useful information and knowledge from this little sharing.

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