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Unit 6: Information Technology Framework

speech, handwriting and simple gestures. The PC may still sit on the desk, but it will be the hub Notes
of a broad “personal network” of devices and services that, in combination with smart Internet
software, will keep you connected, informed and entertained no matter where you are.
The Internet Generation – those born since 1994 – will become tomorrow’s knowledge workers
and leaders of industry and government – the first generation for whom the Internet is as
ubiquitous as the television was for baby boomers. Technology will enrich their learning
experiences, and create connected learning communities where teachers, parents, students, public
libraries and organizations can work together. We’ll also see a generation for whom the Internet
is an everyday means of communicating, making new friends, shopping and being entertained.

6.1 Information Functionality – The Supply Chain

Information is one of the greatest facilitators in supply chain management. Supply Chain
information is a critical component of a firm’s ability to respond rapidly to the end consumer
demand in today’s highly competitive marketplace. Timely and accurate information is also
critical for three reasons:

 Information on order status, product availability, delivery schedule, and invoices is
perceived by customers as a necessary element of total customer service;
 Information can reduce inventory by minimizing demand uncertainty; and

 Information increases flexibility with regard to how, when, and where resources may be
utilized for strategic advantage.
Information integrates supply chain activities by building on four levels of functionality:

 Transaction,
 Management control,
 Decision analysis, and
 Strategic planning systems.
The schematic arrangement, shown as Figure 6.1, identifies the level and identifies major decision
areas associated at each level.

Figure 6.1: Information Functionality
Strategic Planning

Development of Capabilities
Scanning for Opportunities
Customer Service Analysis
Decision Analysis
Vehicle Routing and Scheduling
Inventory Levels & Management Management Central
Network/facility Location planning
Customer Service Measurement
Productivity Measurement
Quality Measurement
Exception Reporting
Transaction Systems

Order Entry
Inventory Assignment
Order Selection
Shipping
Pricing & invoicing
Customer Response/Service
Source: Upendra Kachru, (2010), “Exploring the Supply Chain,” Excel Books

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