Chapter 8

Telecommunications systems are widely used in specialized financial services firms and in other businesses to expedite funds transfer. Many nonfinancial companies use Electronic Data Interchange (EDI) and extranets to transfer payments to suppliers and invoices to large corporate customers. Banks maintain networks to link their automated teller machines (ATMs) and branch offices to central computers that monitor deposits, withdrawals, and fund transfer transactions occurring at remote locations. Financial services firms today depend on networked systems to provide their managers and clients with instant access to account information. These firms are heavy users of online digital information services, such as Dow Jones, to obtain data on firms’ financial positions and on financial markets.

Contemporary human resources systems have realized great efficiencies by using communications technology and the Internet to provide authorized human resources professionals and employees with direct online access to employee information. Employees can use telephone-based systems, the Web, or private corporate networks to review their employment records or to make changes to their benefits plans. Managers can use e-mail, instant messaging, chat, and videoconferencing to communicate with employees and work teams in many different locations. You can find examples of human resources applications on pages 261, 290 and 294.

The manufacturing and production function has become highly networked and communications driven. Computers and computer-controlled machines on the factory floor are often linked by LANs. In companies with advanced manufacturing systems, each step in the manufacturing or production process uses networks to transmit data to the next step. Data from orders trigger transactions that can be transmitted by networks directly to scheduling systems, to supply chain management systems, to the assembly line, and to systems for warehousing and delivery. Extranets are especially useful for collaborative commerce and supply chain management. You can find examples of manufacturing and production applications on pages 300–301.

Many sales transactions today use point-of-sale systems that capture sales transaction data at the checkout counter and transmit them over networks to the firm’s central computer, where they update the firm’s order processing and inventory systems. Once consolidated in corporate systems, these data can be analyzed to identify high-performing and low-performing items, buying trends, and items needing rapid replenishment from suppliers. E-mail and call centers where customers’ telephone calls are directed to service representatives have become popular technologies for customer service and support. The Web is an especially powerful medium for sales and marketing because it provides capabilities for personalization and interacting with customers that cannot be found through other channels. Companies can engage in ongoing dialogues with customers using e-mail, chat, and electronic discussion groups to solidify their customer relationships. You can find examples of sales and marketing applications on pages 300–301.