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MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 1
Transaction Processing & Enterprise Resource Planning Systems
Chapter 9
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 2
Principles and Learning Objectives
• 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.
– Identify the basic activities and business objectives common to all transaction processing systems.
– Describe the inputs, processing, and outputs for the transaction processing systems associated with order, purchasing, and accounting business processes.
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 3
Principles and Learning Objectives
• TPSs help multinational corporations form business links with their business partners, customers, and subsidiaries.
– Identify the challenges that multinational corporations must face in planning, building, and operating their TPSs.
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 4
Principles and Learning Objectives
• 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.
– Define the term enterprise resource planning system and discuss the advantages and disadvantages associated with the implementation of such a system.
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 5
An Overview of Transaction Processing Systems
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 6
TPS, MIS/DSS, and Special Information Systems
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 7
Traditional Transaction Processing Methods & Objectives
• Batch processing systems• On-line transaction processing (OLTP)• On-line entry with delayed processing• Process data generated by and about transactions• Process data generated for and about transactions• Maintain a high degree of accuracy and integrity• Produce timely documents & reports
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 8
Traditional Transaction Processing Methods & Objectives
• Increase labor efficiency• Help provide improved service• Help build and maintain customer loyalty• Achieve competitive advantage
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 9
Batch versus On-Line Transaction Processing
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 11
Examples of Transaction Processing
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 13
Transaction Processing Activities
• Data collection– Should be collected at source– Should be recorded accurately, in a timely
fashion
• Data editing
• Data correction
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 15
Control & Management Issues
• Business resumption planning• Disaster recovery
– Backups
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 16
Transaction Processing Audit
• Does the system meet its business requirements?
• Are there procedures and controls? • Are the procedures & controls properly used?
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 17
Order Processing Systems
• Order entry• Sales configuration• Shipment planning• Shipment execution• Invoicing• Customer relationship management (CRM)• Routing and scheduling• Scheduling systems
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 19
Traditional Transaction Processing Applications
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 26
Customer Relationship Management
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 27
The 15 Top-Rated CRM Software Packages
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 28
Purchasing Systems
• Inventory control• Purchase order processing• Receiving• Accounts payable
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 34
Accounts Receivable Aging Report
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 40
International Issues
• Different languages and cultures• Disparities in information systems infrastructure• Varying laws and custom rules• Multiple currencies
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 42
Enterprise Resource Planning
• Real-time monitoring of business functions• Supports human resources, sales, and
distribution• Accommodates the different ways each
company runs business
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 43
Advantages of ERP
• Eliminates costly, inflexible legacy systems• Improved technology infrastructure• Improved work processes• Increased data access for decision making
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 44
Disadvantages of ERP
• Expense & time• Radical change• Integrating with other systems• One vendor risks
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 46
Business Application Programming Interface (BAPI)
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 47
Summary
• Transaction Processing Systems - consist of all components of a CBIS, including databases, telecommunications, and people
• Transaction Processing Systems Methods - batch, on-line, and on-line with delayed processing
• Enterprise resource planning (ERP) software - a set of integrated programs that manage a company’s vital business operations for an entire multisite, global organization