G041: Lecture 11 Further Impacts of ICT Mr C Johnston ICT Teacher

Impact of ICT on Manufacturing and Production Procurement Management Traditionally ‘in-house’ and paper based Now suppliers linked to manufacturer electronically Orders placed and processed over network Stock control database(s) tracks all items Funds transferred using EDI Much quicker and cheaper than paper based Many firm use ‘just in time’ systems for materials stock No large warehouse for materials Materials delivered and used on same day

Impact of ICT on Manufacturing and Production Manufacturing systems Traditionally - manual systems, lots of workers, long ‘lead times’ etc. CAD originally just drawing. now can test items before manufacture (simulations). ‘Rapid prototyping systems’ can even build 3d model of item. Lasers scan tank of liquid resin to produce solid resin/plastic model CAM Originally basic CNC machines Now integrated with CAD system (and others)

Impact of ICT on Manufacturing and Production Manufacturing systems (continued) CIM (computer integrated manufacturing) Integration of CAD, CAM and all other systems including stock ordering, warehouse, delivery systems Highly flexible, can quickly produce new products, much cheaper, fewer workers Widely used in consumer electronics Electronics Robotics – three different types Basic: pick and place Intermediate: welding/painting Advanced: integrated manufacturing cell robot(s) performs many functions from manufacture to paint and finish

Impact of ICT on Sales and Marketing Orders and Sales Most ordering functions automated Linked directly to stock databases - E.G. Argos stock check Extensive use of data capture at POS Bar codes - on goods Magnetic stripe - on credit/debit cards Smart Card Biometric Security Systems Electronic Funds Transfer at Point of Sale (EFTPOS) Can be linked to customer database Provides ‘real time’ sales information Can be used to monitor employee work rate

Impact of ICT on Sales and Marketing Orders and Sales (continued) Typical Sales System When goods purchased in-store database updated money sent by EDI direct to store’s bank At end of day - all files sent electronically to main office update of central stock database and stock orders generated goods shipped to stores by next day -’ just in time’ system customer record updated E-commerce Major impact on selling of goods Low overheads - no stores e.g. Amazon books, some companies do not hold any stock at all, goods come direct from manufacturer, fewer employees Threat to traditional high street stores Customers have concerns on security of data

Impact of ICT on Sales and Marketing Sales Support and Marketing Businesses making increasing use of customer records (esp. Retail). Directed marketing In store ‘customer specific’ marketing Promotions for regular customers - ‘frequent traveller’ schemes etc. Value of many ‘dot coms’ based on customer record database. marketing increasing Increasing use in all aspects of companies typical uses include: Basic in company communication - Intranet adverts - bulk mailing Sending attachments - photos, plans, diagrams, catalogues Communication with sales/work force off site. Communication with customers

Impact of ICT on Sales and Marketing Sales Support and Marketing (continued) Web Sites Most companies have at least ‘point of presence’ site Used as marketing/advertising tool Some have full e-commerce Some offer incentives for ordering from site Small (UK) companies still reluctant to join in Cost, unsure of benefits, dot.com collapses Security of funds transfer etc. Some companies only exist on the web No physical site Many cost and other advantages

Impact of ICT on Sales and Marketing Electronic Funds and Credit Electronic Funds Transfer (EFT) widely used Major benefits to businesses Funds transferred immediately to bank - unlike check/cash Fraud still a considerable problem Increasing use of IT to decide on credit worthiness From simple ‘credit scoring’ to expert systems Most frequent use of Data Protection Act rights

Impact of ICT on Accounting Systems. Core use of IT in business. Large businesses use mainframe computers Vast storage required Fast processing e.g. payroll, invoicing Utility companies have some of the biggest computer systems in the UK - millions of customers Increasingly used for financial modelling

Impact of ICT on Human Resources All systems make use of vast storage and fast retrieval capabilities Increasingly used for assessing training needs Often used when ‘down sizing’ Can be linked to time keeping /productivity systems Many implications for Data Protection Act Especially security, ‘sensitive data’