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CHAPTER 10

CHAPTER 10. Information Systems within the Organization. Transaction Processing Systems (TPS). Business Transaction Transaction Processing Systems. – any business event that generates data worthy of being captured or stored (usually in a database).

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CHAPTER 10

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  1. CHAPTER 10 Information Systems within the Organization

  2. Transaction Processing Systems (TPS) • Business Transaction • Transaction Processing Systems • – any business event that generates data worthy of being captured or stored (usually in a database). • Examples: product manufactured, sale made, person hired, check written • – monitor, collect, store and process data generated from all business transactions.

  3. Transaction Processing Systems (TPS) • Batch Processing • Online Transaction Processing (OLTP) • – data is collected from transactions as they occur, grouped into batches, then the batches are processed periodically. (Ex: daily, nightly) • –business transactions are processed online as soon as they occur. (immediately) • Source data automation – collecting data from sensors and entering the data directly into a computer without human intervention.

  4. How a TPS Manages Data

  5. Functional Area Information Systems • Functional Area Information Systems support a functional area by increasing its internal effectiveness and efficiency • Accounting (ACC) • Finance (FIN) • Marketing (MKT) • Operations (OPS) • Human Resources Management (HR) • Specific Examples?

  6. Examples of Information Systems Supporting the Functional Areas

  7. Enterprise Resource Planning (ERP) • Enterprise Resource Planning (ERP) systems integrate the planning, management and use of all resources of the organization. That is, ERP systems are designed to break down the information separation within an organization.

  8. Enterprise Resource Planning (ERP) Old way (LOTS of problems/issues)

  9. Core ERP Modules Manufacturing & Production Module Customer Relationship Management Module Human Resources Module Accounting and Financial Module Supply Chain Management Module E-Business Module Suppliers Customers ERPPlatform & Database Business Intelligence Module Extended ERP Modules

  10. ERP Benefits • Organizational flexibility • Decision Support • Quality and Efficiency • Error reduction • Reduced redundancy • Decreased costs (over time)

  11. ERP Drawbacks • Usually generic • Can be costly to customize • May have complex interconnections and take lots of time to implement • Training

  12. Reporting • Routine reports • Ad hoc (on demand) reports • Drill-down reports • Key-indicator reports • Comparative reports • Exception reports

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