Understanding technology in operations is critical for several reasons. Virtually everything that is done in a business depends on some type of technology.
Technology is evolving at an extremely rapid pace.
Technological innovation in goods, services, manufacturing, and service delivery is a competitive necessity.
Hard technology refers to equipment and devices that perform a variety of tasks in the creation and delivery of goods and services.
Soft technology is the application of the Internet, computer software, and information systems to provide data, information, and analysis and to facilitate the accomplishment of creating and delivering goods and services.
Service Technology
Service technologies are used behind the scenes to facilitate your experience as a customer. E-service refers to using the Internet and technology to provide services that create and deliver time, place, information, entertainment, and exchange value to customers and/or support the sale of goods.
Source: M. M. Anderson, The Electronic Check Architecture, Financial Services Technology Consortium, 1998 (http://www.echeck.org/li brary/wp/index.html).
Business Intelligence Systems in Value Chains Business intelligence systems (BIS) consolidate data from across the organization and allow companies to integrate information into a common database for easy access and analysis. Many BIS incorporate data mining, sophisticated statistical analysis tools and automated search algorithms to sift through large amounts of data to identify meaningful relationships.
Integrated Operating System (IOS) has 4 major characteristics: 1. An IOS focus is on the main problem structure and processes of a specific industry, such as home insurance, airlines, family practice medical doctors, or automobile manufacturers.
2. An IOS addresses key decisions that need to be made to serve the customer in the best possible way.
Integrated Operating System (IOS) 3. An IOS involves the collection, storage, analysis, and dissemination of data and information via information technology to improve decision-making within the organization.
4. An IOS is capable of making key decisions in a synchronous and timely way anywhere along the value chain.
Integrated Operating System (IOS) Supply chain management (SCM) systems focuses on producing the right product, in the right quantity, at the right time, in the right location, to the right customer, at the right price.
A robot is a programmable machine designed to handle materials or tools in the performance of a variety of tasks.
Flexible manufacturing systems (FMS) consist of two or more computer-controlled machines linked by automated handling devices.
Enterprise Resource Planning (ERP) systems integrate all aspects of a businessaccounting, customer relationship management, supply chain management, manufacturing, sales, human resourcesinto a unified information system and provide more timely analysis and reporting of sales, customer, inventory, manufacturing, human resource, and accounting data.
Integrated Operating System (IOS) CRM helps firms gain and maintain a competitive advantage by Segmenting markets based on characteristics, Tracking sales trends and advertising effectiveness, Forecasting customer retention rates and providing feedback as to why customers leave the company, Studying which goods and services are purchased together, Linking the information to competitive priorities by market segment and process and value chain performance.
Modern RMS software simultaneously makes changes in these decisions in a real-time operating system. RMS used to determine price for hotel rooms, airline seats, rental car, sporting event or concert seat, cruise line room, broadcast advertising, power generation, and so on.
Benefits of Technology
Improves productivity and product quality.
Challenges of Technology Customer concerns, such as online security and privacy issues. Logistical costs for manufactured goods are expensive for online businesses.
Logistical costs for information intensive services are much cheaper for online businesses.
Product returns to a virtual store.
required to deliver a good or service as the business grows and volumes increase.