C H A P T E RS

1. 8-9 C H A P T E RS Transaction Processing, Electronic Commerce, and Enterprise Resource Planning Systems

2. McDonalds Bel Air Transaction Processing

3. AI/ES DSS MIS TPS TPS, MIS, DSS, and AI/ES • Transaction Processing Systems (TPS) • Performs routine operations and serve as a foundation for other systems. • Transactions • The basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, and payroll checks in an organization.

4. Sales/Inventory/Order Transactions UPC from scanner Record sale/date/time. Update inventory. Price/description of item EDI Electronic Data Interchange (Order) Re-stock inventory Shipping

5. AI/ES DSS MIS TPS TPS, MIS, DSS, and AI/ES Information Less Routine More More Decision support Less More Complex processing/ analysis Less Less I/O More Data

6. Batch vs On-line Processing • Batch processing • All transactions are accumulated over a period of time and processed as a single unit. • Typical periods: daily, weekly, • biweekly, monthly, etc. • Examples • Payroll • Billing Transactions

7. Batch vs On-line Processing • On-Line Transaction Processing (OLTP)) • All transactions are processed immediately, without delay. • Also called Real-time transaction processing. Car Rentals Airline Reservations Hotel Reservations

8. On-line Delayed Transaction Processing • On-Line Delayed Transaction Processing • All transactions are entered into the computer when they occur, but are processed at a later time. Deposits Catalog Orders

9. Simplified View of a TPS Processing Data Input Document and Reports • Documents • Pick list • Checks to vendors • Receiving notices • Paychecks • Operational Reports • Finished goods status • Raw Materials • Inventory status • Packing materials • Spare parts • Internal Transactions • Shipped Orders • Purchase Orders • Employee Time Cards • External Transactions • Customer Orders • Vender Invoices • Customer payments Databases • Database Update • Customer orders • Inventory • Purchase Orders • Suppliers

10. Source Data Automation • Source Data Automation • Capturing data at its source in a form that can be directly entered into the computer. It does NOT require keyboard input. Barcode Reader Magnetic Strip Reader RFID Mark Sense Reader Time Clock POS Register POS Register POS Register

11. Transaction Processing Cycle Corrected Data Original Data Data Collection Data Editing Good Data Bad Data Data Correction Data Manipulation Data Storage Document Production

12. Customer Product Internet Phone Mail EDI Order Entry Routing Shipment Execution Scheduling Shipment Planning Order Processing System Invoice Inventory Status Orders Picking List Planned Shipments

13. Order-Processing System Order Entry System • Captures data needed to process • the customer’s order. • Sources of data: • Telephone • EDI • E-mail • Internet • Salesperson Sales Configuration System • Ensures that products/services ordered will accomplish customer’s • objectives and will work well together. • Customer orders a five-station network. Does the customer • have all they need? Continued

14. Order-Processing System Shipment Planning System • A system that determines which • open orders will be filled and • from which location they will • be shipped. Shipment Execution System • A system that coordinates the outflow of all products and goods • from the organization, with the objective of delivering quality • products on time to customers. • Uses a picking list from Shipment Planning. Continued

15. Order-Processing System Inventory Control System • For each item picked during Shipment • Execution, inventory is updated. Invoicing System • Customer invoices are generated and sent based on records • received from the Shipment Execution System. Continued

16. Customer Order-Processing System Customer Interaction System • Monitors and tracks • each customer’s • interaction with the • company. Request for Proposal Sale Problems, Ideas, Information Other contacts Customer Interaction Sys. Market Research R & D Sales QC Continued Marketing

17. Order-Processing System Routing System • Determines the best way to get goods from one location to another. Scheduling System • Determines the best time to deliver goods and services.

18. TPS Summary • TPS SUMMARY • A TPS records and processes detailed data necessary to update records about the business operations of an organization. • Types of Systems: • Order entry • Inventory control • Payroll • Account payable and receivable • General ledger • Etc, etc

19. Spare some change?? I use to be a sales clerk at Egghead Software before they became www.egghead.com. Electronic Commerce

20. Electronic Commerce • IBM’s Shopping Assistant (Intelligent Agent) • Helps you find items you want. • Reminds you when items go on sale, or birthdays etc. • Learns your preferences: • Rearranges merchandise at shopping malls so • that you see the items you like most, first. • Can correlate buying patterns of whole groups of • shoppers: Shirts and ties, shoes and socks.

21. E-Commerce • Visit SitesPriceWatch.comTigerDirect.com • www.amazon.com • www.dell.com • www.pennlaurelrealty.com • www.ebay.com • www.pricewatch.comhttp://www.google-watch.org/bigbro.html • www.scroogle.orghttp://www.google-watch.org/jobad.html • http://www.spychips.com/index.htmlDrudgeReport.com(News somewhat out of the cave.) • http://www.wnd.com(News somewhat out of the cave.)

22. E-CommerceTHE FUTURE • RFID Card • Intelligent card with embedded computer. • Holds a great deal of information that identifies the bearer. • Operates as an electronic purse. • Applications: • Telecommunications • Banking • Airlines • Transportation • Medical industries

23. E-Commerce: Five-Stage Model Buyer Electronic Distribution 1. Search for Sources 5. After-sales service 2. Selection and Negotiation Traditional Delivery 4. Product and Service Delivery 3. Purchasing

24. E-Commerce: Five-Stage Model 1. Search for Sources • Search for the desired items and identify the best source. 2. Selection and Negotiation • Selects the desired item/s and gets a price. 3. Purchasing • Fills in an electronic purchase form and arranges payment by • corporate account, credit card, check, or CyberCash. 4. Product and Service Delivery • Product is delivered electronically or by conventional means. 5. After-sales service • Capture demographic data about customer and data about • after-sales interaction with customer.

25. FAST, REALTIME ACCESS OF INFORMATION ACROSS ALL FUNCTIONAL AREAS OF A COMPANY Enterprise Resource Planning (ERP)

26. Enterprise Resource Planning (ERP) FAST, REALTIMEACCESS OF INFORMATION ACROSS ALL FUNCTIONAL AREAS OF A COMPANY R & D Information Systems Purchasing Accounting Finance Database Marketing Distribution Sales HR Manufacturing

27. Enterprise Resource Planning (ERP) • Enterprise Resource Planning Characteristics: • Major Goal: Fast, real-time monitoring of business • functions. • ERP permits real-time analysis of key issues: • Quality • Availability • Customer satisfaction • Performance • Profitability • Automatically sends exception • reports to affected functional • areas. • Only purchase application • modules you need.

28. Enterprise Resource Planning (ERP) • Advantages of ERP • Enterprise-wide access to real-time information for decision • making. • Eliminates costly, inflexible legacy systems. • ERP venders use very good work process procedures in • their application modules. • Uses a highly integrated database and uses essentially one • set of data to support all business functions. • Only need to purchase the application modules you need. • Upgrade technology infrastructure: • Eliminates the hodgepodge of multiple hardware • platforms, operating systems, and databases it is using • from multiple vendors.

29. Time High Cost Enterprise Resource Planning (ERP) • Disadvantages of ERP • High cost • Consultants often get $2,000 per day. • Kodak $500 million • Chevron $160 million • CSUS $700 million-plus (PeopleSoft ERP by Oracle) • Typically takes one or more years to implement. • Difficult to implement because companies often need to • make radical changes to conform to he “best practice” • model. Radical Change

30. Enterprise Resource Planning (ERP) • SAP R/3 • SAP is the most widely usedERP system in the world. • SAP - Systems Analysis and Program Development • Developed from the perspective of the corporation as a • whole, rather than any business department. • Top-down development. • Runs on a wide variety of hardware servers from small • Windows NT to massively parallel systems. • Only purchase the application modules you need. • Support 1,000’s of users on a single database server with • satisfactory response times. • Uses a three-tier client/server architecture.

31. Enterprise Resource Planning (ERP) SAP R/3 Three-Tier Client/Server Architecture • SAP - Systems Analysis and Program Development • R/3 - Third Revision of a Relational • system. R/3 version is client/server. • The company is based in Walldorf, • Germany. • Many consider it “THE” software • for the 21 century. • 20,000 employees worldwide. • Data is kept only once in the • system; thus, very little data • redundancy. Database Server Application Servers Client Computers

32. The End

33. Topic: TPS 1. This system helps eliminate costly, inflexible legacy systems and uses a “best-practices model”. a. ABC b. ERP (Enterprise Resource Planning) c. SAP d. DBMS e. b and c

34. 2. A system that monitors and tracks each customer’s interaction with a company is called. a. Customer satisfaction system. b. Customer interaction system. c. Customer tracking system. d. Customer goodwill system. e. None of the above.

35. 3. When computers communicate from different companies so that the output from one system is processed by another without human intervention, the system is called: a. Coupling b. Electronic Data Interchange c. EDI d. b and c

36. 4. Which system below would be more likely to use batch processing? a. payroll b. airline reservations c. hotel reservations d. auto rental e. college course registration

37. 5. In a three-tier client/server ERP architecture, where would the programs for accounting, sales, R&D, purchasing, etc. be located? a. database server b. client c. application servers d. function servers e. business functions servers

38. 6. Any information system must involve the organization’s strategic plan? a. True b. False

39. 7. In this form of processing, transactions are accumulated over a period of time and processed as a single unit. Batch processing On-line transaction processing Real-time processing On-line delayed processing a and d

40. 8. In this form of processing, transactions are entered into the computer and stored on a disk or tape and processed at a later time. On-line transaction processing Real-time processing On-line delayed processing

41. 9. In this form of processing, transactions are entered into the computer and are immediately processed. On-line transaction processing Real-time processing On-line delayed processing a, b, and c a and b

42. 10. In this type of data input into the computer, the data are captured at the source by a device, such as a barcode reader, and entered directly into the computer. It is called Source Data Automation. True False

43. 11. After collecting data for processing it must pass through a “filter” called Data Editing or Data Validation. This filter helps eliminate: GIFO GIGO GGIO GFIO

44. 12. This system is very important for recording and monitoring the interaction the customer has with a company. Customer tracking system Customer satisfaction system Customer interaction system Customer goodwill system

45. 13. Examples of a TPS: Order entry Inventory control Payroll Sales at a cash register All of the above

46. 14. The CSUS university system uses what ERP? SAP PeopleSoft None of the above