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Transaction Processing & Enterprise Resource Planning Systems

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

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  1. Transaction Processing & Enterprise Resource Planning Systems Chapter 9 Principles of Information Systems, Sixth Edition

  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. Principles of Information Systems, Sixth Edition

  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. Principles of Information Systems, Sixth Edition

  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 systemand discuss the advantages and disadvantages associated with the implementation of such a system. Principles of Information Systems, Sixth Edition

  5. An Overview of Transaction Processing Systems Principles of Information Systems, Sixth Edition

  6. TPS, MIS/DSS, and Special Information Systems Principles of Information Systems, Sixth Edition

  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 Principles of Information Systems, Sixth Edition

  8. Traditional Transaction Processing Methods & Objectives • Increase labor efficiency • Help provide improved service • Help build and maintain customer loyalty • Achieve competitive advantage Principles of Information Systems, Sixth Edition

  9. Batch versus On-Line Transaction Processing Principles of Information Systems, Sixth Edition

  10. Integration of a Firm’s TPSs Principles of Information Systems, Sixth Edition

  11. Examples of Transaction Processing Principles of Information Systems, Sixth Edition

  12. Transaction Processing Systems Principles of Information Systems, Sixth Edition

  13. Transaction Processing Activities • Data collection • Should be collected at source • Should be recorded accurately, in a timely fashion • Data editing • Data correction Principles of Information Systems, Sixth Edition

  14. Document Production and Reports Principles of Information Systems, Sixth Edition

  15. Control & Management Issues • Business resumption planning • Disaster recovery • Backups Principles of Information Systems, Sixth Edition

  16. Transaction Processing Audit • Does the system meet its business requirements? • Are there procedures and controls? • Are the procedures & controls properly used? Principles of Information Systems, Sixth Edition

  17. Order Processing Systems • Order entry • Sales configuration • Shipment planning • Shipment execution • Invoicing • Customer relationship management (CRM) • Routing and scheduling • Scheduling systems Principles of Information Systems, Sixth Edition

  18. Document Production Reports Principles of Information Systems, Sixth Edition

  19. Traditional Transaction Processing Applications Principles of Information Systems, Sixth Edition

  20. Order Processing Systems Principles of Information Systems, Sixth Edition

  21. Order Processing Systems Principles of Information Systems, Sixth Edition

  22. Order Entry System Principles of Information Systems, Sixth Edition

  23. Customer Relationship Management Principles of Information Systems, Sixth Edition

  24. Purchasing Systems • Inventory control • Purchase order processing • Receiving • Accounts payable Principles of Information Systems, Sixth Edition

  25. Purchasing Systems Principles of Information Systems, Sixth Edition

  26. Accounting Systems Principles of Information Systems, Sixth Edition

  27. ERP Software Vendors Principles of Information Systems, Sixth Edition

  28. International Issues • Different languages and cultures • Disparities in information systems infrastructure • Varying laws and custom rules • Multiple currencies Principles of Information Systems, Sixth Edition

  29. Enterprise Resource Planning • Real-time monitoring of business functions • Supports human resources, sales, and distribution • Accommodates the different ways each company runs business Principles of Information Systems, Sixth Edition

  30. Advantages of ERP • Eliminates costly, inflexible legacy systems • Improved technology infrastructure • Improved work processes • Increased data access for decision making Principles of Information Systems, Sixth Edition

  31. Disadvantages of ERP • Expense & time • Radical change • Integrating with other systems • One vendor risks Principles of Information Systems, Sixth Edition

  32. ERP System Principles of Information Systems, Sixth Edition

  33. Business Application Programming Interface (BAPI) Principles of Information Systems, Sixth Edition

  34. 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 Principles of Information Systems, Sixth Edition

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