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Chapter 8

Chapter 8. Transaction Processing, Electronic Commerce, & Enterprise Resource Planning Systems. TPS, MIS, DSS, and AI/ES (Figure 8.1). Transaction Processing Systems (TPS) Perform routine operations & serve as a foundation for other systems. Transactions

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Chapter 8

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  1. Chapter 8 Transaction Processing, Electronic Commerce, & Enterprise Resource Planning Systems

  2. TPS, MIS, DSS, and AI/ES(Figure 8.1) Transaction Processing Systems (TPS) Perform routine operations & serve as a foundation for other systems Transactions Basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, & payroll checks in an organization IS for Management

  3. Batch vs. On-Line Transaction Processing(Figure 8.2) Batch Processing A system in which business transactions are accumulated over a period of time & prepared for processing as a single unit or batch On-Line Transaction Processing (OLTP) A system whereby each transaction is processed immediately, without the delay of accumulating transactions into a batch IS for Management

  4. Integration and Objectives of TPS • Integration of TPS(Figure 8.3) • Objectives of TPS • Process data generated by & about transactions • Maintain a high degree of accuracy • Ensure data & information integrity and accuracy • Produce timely documents & reports • Increase labor efficiency • Help provide increased & enhanced service • Help build & maintain customer loyalty IS for Management

  5. Simplified Overview of TPS(Figure 8.4) IS for Management

  6. DP Activities Common to TPS(Figure 8.5) • A Transaction Processing Cycle • Data Collection • Data Editing • Data Correction • Data Manipulation • Data Storage • Document Production • Source Data Automation: Process of capturing data at its source with minimal manual effort, entered directly into the computer without human intervention IS for Management

  7. Control and Management Issues • Business Resumption Planning: Process of anticipating & providing for disasters • Disaster Recovery: Implementation of the business resumption plan • TPS Audit: Examination of the TPS in an attempt to answer 3 basic questions • Does the system meet the business need? • What procedures & controls have been established? • Are the procedures & controls being properly used? IS for Management

  8. Traditional TPS Order Processing(Figure 8.7) Order Processing Processing an order from entry to delivery, including traditional accounting transactions IS for Management

  9. Software Vendor Name of Software Avalon Software Avalon CIM qad.inc MRG/PRO Oracle Oracle Manufacturing SAP America SAP R/3 Baan Triton PeopleSoft PeopleSoft J.D. Edwards World Enterprise Resource Planning (ERP)(Table 8.5) ERP: Real-time monitoring of business functions across the enterprise IS for Management

  10. Enterprise Resource Planning • Advantages • Eliminate costly, inflexible legacy systems • Provide improved work processes • Provide access to data for operational decision making • Upgrading technology infrastructure • Disadvantages • Time consuming, difficult, expensive to implement • Make radical changes in how a company operates • Lack of vendor responsiveness in light of high demand IS for Management

  11. Example of an ERP System - SAP/R3 • Clients in the SAP system • Application servers in the SAP system • Business application programming interfaces (BAPIs) • Database server in the SAP system • Objects in the SAP system • Repository • Tables IS for Management

  12. SAP Three-Tier Client/Server Architecture(Figure 8.24) • Database servers hold data that are accessed & updated in real-time • Applications servers are used to execute client requests & to update master files • Client desktop computers: The R/3 system is able to support hundreds or thousands of clients (e.g., Pentium PCs) IS for Management

  13. Business Application Programming Interface (BAPI)(Figure 8.25) IS for Management

  14. Chapter 8 Case • Case 3: FedEx and SAP team up (pp. 385-86) IS for Management

  15. Electronic Commerce (E-Commerce) • Business-to-business problems • Inadequate models • Integrating with existing systems • Improving relationships with suppliers, customers, & distributors • Consumer problems • Waiting for images to download • Security of credit information • Figuring out the ordering process • Currently a small part of all commerce IS for Management

  16. 5 Stage Model of E-Commerce (Figure 8.22) • Stages consumers experience in the sales life cycle: • Search for & identify supplier(s) • Selection & negotiation • Purchasing • Product & service delivery • traditional delivery • electronic distribution • After-sales service IS for Management

  17. Forecasted Volume of E-Commerce 1997 2000 Consumer E-Commerce $0.5 billion $ 7 billion Business-to-business E-Commerce $8.0 billion $66 billion IS for Management

  18. Purchasing Products & Services Electronically • Establish credit with suppliers • Secure E-Commerce transactions • Secure credit transactions • Secure Financial Transaction (SET) • Secure Sockets Layer (SSL) • Others • CyberCash • Electronic wallets, purses, etc. • Digicash options IS for Management

  19. E-Commerce Everything you know about e-commerce is WRONG! • CEOs still have control • Online revenues do matter for justifying infrastructure • Profitability is good • It isn’t just clicks versus mortar • Business models may be different • Indirect channels are crucial partners • Going global includes importance of local image • Speed, speed & more speed IS for Management

  20. E-C Components & Principles (1) • Search engines • Portals • Virtual community • Topical sites • Site design • Ease of use (linking structure, intuitiveness) • Robustness • Push vs. Pull • Push: Web sites can push customized information to consumer/business • Pull: Consumers/businesses have to search for information/product/service IS for Management

  21. E-C Components & Principles (2) • Security • Firewalls • Encryption • Cookies • Privacy considerations • Collecting data • Changing data (includes merging data) • Notification of potential uses of data • Permission to use data for purposes not originally intended IS for Management

  22. E-C Components & Principles (3) • E-Markets • Consumer auctions • B2B auctions & brokers • Travel services • One-click process patented • E-Payments • Cybercash • Credit cards IS for Management

  23. E-C Components & Principles (4) • Applications • Bill paying • Education • Elections • Entertainment • Extranets • Intranets • Productivity tools • Purchasing • Research IS for Management

  24. EC & Customer Service • Customer service • 4 out of 5 online purchasers have experienced a failed purchase • 25% of those frustrated say they will never go back • 8% rate of abandonment IS for Management

  25. EC: Where To Now??? • What are trends? • What are technological advances? • Push vs. Pull • Push: Advances in technology push applications for the technology to be used • Pull: Business/consumer needs pull the technology to be developed to meet the needs • Permanence of the Web as “information space” (Tim Berners-Lee, 1999) IS for Management

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