Initially, IT systems in organizations were applied to operations. These initial applications were based on the notion of machine-room efficiency-that is, current operations could be performed more efficiently with the use of computer technology. The goal was to reduce labor costs by having computers take over some tasks. These systems became known as transaction processing systems (TPS), which automate the organization’s routine, day-to-day business transactions. A TPS collects data from transactions such as sales, purchases from suppliers, and inventory changes, and stores them in a database. For example, at Enterprise Rent-a-Car, a computerized system keeps track of the 1.4 million transactions the company logs every hour. The system can provide front-line employees with up-to-the-minute information on car availability and other data, enabling them to provide exceptional customer service.4 Midland Memorial Hospital in Texas recently adopted information technology for electronic medical records. The system helped Midland catch up on a $16.7 million coding and billing backlog for 4,500 patient records in only four weeks, a process that likely would have taken six months or more without the system.