2. Transaction Processing Systems
“An IT system designed to collect, record,
and manipulate the data related to a
company’s day-to-day business
operation.”(McGraw-Hill, 2007)
(TP system)
3. Knowledge Management Systems
“An IT system that analyzes the
information collected from the TP system
but filters and analyzes it to make it more
useful to managers.”(McGraw-Hill, 2007)
(KM system)
4. Expert Systems and
“An advanced IT system that can reason
through a company’s information,
diagnose problems, and suggest
solutions.” (McGraw-Hill, 2007)
“An IT system that reasons and learns like
a human being.” (McGraw-Hill, 2007)
Artificial Intelligence
5. Enterprise Resource Planning Systems
“Multi-module applications software
packages that coordinate all of a
company’s functional activities.”(McGraw-
Hill, 2007)
(ERP system)
6. E-Commerce Systems
“Trade that takes place between
companies, and between companies and
individual customers via the Internet (or
other IT systems).” (McGraw-Hill, 2007)
7. References
McGraw-Hill Companies (2007). Jones:
Introduction to Business: How
Companies Create Value for People.
Retrieved March 11,2009.
Editor's Notes
There are five different effective IT applications that can be implemented by the CIO: transaction processing, knowledge management, expert systems, enterprise resource planning, and e-commerce.
TP systems perform all of the legwork necessary to record the basic information a company needs to operate. (McGraw-Hill, 2007)
Extracts information from the mass of data the company’s TP system collects every day. (McGraw-Hill,2007)
Can be designed to perform high level information processing for all of a company’s functions. (McGraw-Hill,2007)
The value chain has two different functions. Primary: marketing, product development, operations, materials management, and sales; secondary: IT, human resources, accounting, and finance. (McGraw-Hill,2007)
B2B: between businesses, B2C: between business and consumers. (McGraw-Hill,2007)
