Principles of Information Systems - Chapter 9

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Principles of Information Systems Sixth Edition, Written by Ralph Star, George Reynolds

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  • Chapter 9 addresses the oldest type of information system used in business – transaction processing systems – and its latest evolution, enterprise resource planning systems. All organizations have manual and automated transaction processing systems. These are key systems for businesses since they perform routine business activities, process key business activities and maintain records about them. Although they do not themselves explicitly support decision-making, transaction processing systems also collect and update data used by many other business information systems, such as management information systems or decision support systems. After studying chapter 9, you should be able to address the learning objectives described in the next 2 slides.
  • Principles of Information Systems - Chapter 9

    1. 1. Transaction Processing & Enterprise Resource Planning Systems Chapter 9
    2. 2. Principles and Learning Objectives <ul><li>An organization’s TPS must support the routine, day-to-day activities that occur in the normal course of business and help a company add value to its products and services. </li></ul><ul><ul><li>Identify the basic activities and business objectives common to all transaction processing systems. </li></ul></ul><ul><ul><li>Describe the inputs, processing, and outputs for the transaction processing systems associated with order, purchasing, and accounting business processes. </li></ul></ul>
    3. 3. Principles and Learning Objectives <ul><li>TPSs help multinational corporations form business links with their business partners, customers, and subsidiaries. </li></ul><ul><ul><li>Identify the challenges that multinational corporations must face in planning, building, and operating their TPSs. </li></ul></ul>
    4. 4. Principles and Learning Objectives <ul><li>Implementation of an enterprise resource planning system enables a company to achieve numerous business benefits through the creation of a highly integrated set of systems. </li></ul><ul><ul><li>Define the term enterprise resource planning system and discuss the advantages and disadvantages associated with the implementation of such a system. </li></ul></ul>
    5. 5. An Overview of Transaction Processing Systems
    6. 6. TPS, MIS/DSS, and Special Information Systems
    7. 7. Traditional Transaction Processing Methods & Objectives <ul><li>Batch processing systems </li></ul><ul><li>On-line transaction processing (OLTP) </li></ul><ul><li>On-line entry with delayed processing </li></ul><ul><li>Process data generated by and about transactions </li></ul><ul><li>Process data generated for and about transactions </li></ul><ul><li>Maintain a high degree of accuracy and integrity </li></ul><ul><li>Produce timely documents & reports </li></ul>
    8. 8. Traditional Transaction Processing Methods & Objectives <ul><li>Increase labor efficiency </li></ul><ul><li>Help provide improved service </li></ul><ul><li>Help build and maintain customer loyalty </li></ul><ul><li>Achieve competitive advantage </li></ul>
    9. 9. Batch versus On-Line Transaction Processing
    10. 10. Integration of a Firm’s TPSs
    11. 11. Examples of Transaction Processing
    12. 12. Transaction Processing Systems
    13. 13. Transaction Processing Activities <ul><li>Data collection </li></ul><ul><ul><li>Should be collected at source </li></ul></ul><ul><ul><li>Should be recorded accurately, in a timely fashion </li></ul></ul><ul><li>Data editing </li></ul><ul><li>Data correction </li></ul>
    14. 14. Document Production and Reports
    15. 15. Control & Management Issues <ul><li>Business resumption planning </li></ul><ul><li>Disaster recovery </li></ul><ul><ul><li>Backups </li></ul></ul>
    16. 16. Transaction Processing Audit <ul><li>Does the system meet its business requirements? </li></ul><ul><li>Are there procedures and controls? </li></ul><ul><li>Are the procedures & controls properly used? </li></ul>
    17. 17. Order Processing Systems <ul><li>Order entry </li></ul><ul><li>Sales configuration </li></ul><ul><li>Shipment planning </li></ul><ul><li>Shipment execution </li></ul><ul><li>Invoicing </li></ul><ul><li>Customer relationship management (CRM) </li></ul><ul><li>Routing and scheduling </li></ul><ul><li>Scheduling systems </li></ul>
    18. 18. Document Production Reports
    19. 19. Traditional Transaction Processing Applications
    20. 20. Order Processing Systems
    21. 21. Order Processing Systems
    22. 22. Order Entry System
    23. 23. Shipment Planning
    24. 24. Inventory Status Report
    25. 25. Invoicing
    26. 26. Customer Relationship Management
    27. 27. The 15 Top-Rated CRM Software Packages
    28. 28. Purchasing Systems <ul><li>Inventory control </li></ul><ul><li>Purchase order processing </li></ul><ul><li>Receiving </li></ul><ul><li>Accounts payable </li></ul>
    29. 29. Purchasing Systems
    30. 30. Accounts Payable
    31. 31. Accounts Payable
    32. 32. Accounting Systems
    33. 33. Accounts Receivable
    34. 34. Accounts Receivable Aging Report
    35. 35. Typical Paycheck Stub
    36. 36. Payroll Journal
    37. 37. General Ledger
    38. 38. General Ledger
    39. 39. ERP Software Vendors
    40. 40. International Issues <ul><li>Different languages and cultures </li></ul><ul><li>Disparities in information systems infrastructure </li></ul><ul><li>Varying laws and custom rules </li></ul><ul><li>Multiple currencies </li></ul>
    41. 41. Enterprise Resource Planning
    42. 42. Enterprise Resource Planning <ul><li>Real-time monitoring of business functions </li></ul><ul><li>Supports human resources, sales, and distribution </li></ul><ul><li>Accommodates the different ways each company runs business </li></ul>
    43. 43. Advantages of ERP <ul><li>Eliminates costly, inflexible legacy systems </li></ul><ul><li>Improved technology infrastructure </li></ul><ul><li>Improved work processes </li></ul><ul><li>Increased data access for decision making </li></ul>
    44. 44. Disadvantages of ERP <ul><li>Expense & time </li></ul><ul><li>Radical change </li></ul><ul><li>Integrating with other systems </li></ul><ul><li>One vendor risks </li></ul>
    45. 45. ERP System
    46. 46. Business Application Programming Interface (BAPI)
    47. 47. Summary <ul><li>Transaction Processing Systems - consist of all components of a CBIS, including databases, telecommunications, and people </li></ul><ul><li>Transaction Processing Systems Methods - batch, on-line, and on-line with delayed processing </li></ul><ul><li>Enterprise resource planning (ERP) software - a set of integrated programs that manage a company’s vital business operations for an entire multisite, global organization </li></ul>

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