This document discusses five principal IT applications used in business: 1) Transaction processing systems record and manage a company's routine operations. 2) Knowledge management systems analyze transaction data to make it more useful for managers. 3) Expert systems and artificial intelligence can diagnose problems, suggest solutions, and learn like humans. 4) Enterprise resource planning systems coordinate all functional activities to improve operations and integration. 5) E-commerce systems facilitate business-to-business and business-to-customer trade online.

1. IT
Applications
By: Jenna Morrissette
BUS/210 with Tomeka
Prescott
07/11/2012

2. Five Principle Applications
Used in Business
 Transaction processing systems
 Knowledge management systems
 Expert system and artificial intelligence
 Enterprise resource planning systems
 E-commerce systems

3. Transaction processing systems
 Transaction  TP systems are the
processing systems is “backbone” of a
also known as TP
systems company’s IT
 TP is designed to  Responsible for all
collect, record, and the basic
manipulate the data information a
related to a
company needs to
company’s routine,
or day-to-day operate.
operations.

4. Knowledge Management
Systems
 Also known as KM Systems
 Analyzes the information
collected from the TP system
then filters and analyzes it to
make it more useful to
managers.
 The communication between
KM and TP is through codes
 Another aspect of KM is that it
has to be able to extract
information from the mass of
data the company’s TP system
collects every day

5. Expert system & Artificial
Intelligence
 An expert system is an advanced IT system
that can-
I. reason through the information captured
by a company’s TP and KM systems
II. recognize and diagnose patterns,
problems, or issues related to that
information
1. suggest solutions for those problems and
issues
 Artificial
Intelligence is an IT system that
reasons and learns like a human being

6. Enterprise resource planning
systems
 Also known as ERP
 multimodal applications software
packages that coordinate all of a
company’s functional activities.
 ERP systems-
1. help individual functions improve their
operations
2. improve the integration between
functions

7. E-commerce systems
 A trade that takes place
between companies, between
companies and individual
customers, using IT and the
Internet
 Business to Business (B2B) –an
industry-specific trading platform
set up to connect buyers and
sellers on the internet or
 Business to Customer (B2C)-A
trade that takes place between
a company and customer

8. References-
 Chapter9- Information Technology & E-
Commerce: Managing Information,
Knowledge, and Business Relationships.
McGraw, 2007