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Transaction Processing & Enterprise Resource Planning Systems. Chapter 9. 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.
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Transaction Processing & Enterprise Resource Planning Systems Chapter 9 MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
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
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
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 systemand discuss the advantages and disadvantages associated with the implementation of such a system. MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
An Overview of Transaction Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
TPS, MIS/DSS, and Special Information Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
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
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
Batch versus On-Line Transaction Processing MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Integration of a Firm’s TPSs MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Examples of Transaction Processing MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Transaction Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
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
Document Production and Reports MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Control & Management Issues • Business resumption planning • Disaster recovery • Backups MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
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
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
Document Production Reports MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Traditional Transaction Processing Applications MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Order Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Order Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Order Entry System MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Shipment Planning MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Inventory Status Report MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Invoicing MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Customer Relationship Management MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
The 15 Top-Rated CRM Software Packages MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Purchasing Systems • Inventory control • Purchase order processing • Receiving • Accounts payable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Purchasing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Accounts Payable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Accounts Payable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Accounting Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Accounts Receivable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Accounts Receivable Aging Report MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Typical Paycheck Stub MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Payroll Journal MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
General Ledger MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
General Ledger MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
ERP Software Vendors MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
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
Enterprise Resource Planning MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
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
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
Disadvantages of ERP • Expense & time • Radical change • Integrating with other systems • One vendor risks MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
ERP System MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
Business Application Programming Interface (BAPI) MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan
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 MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan