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Evolution of Transaction Processing Systems

Explore the evolution of transaction processing systems including characteristics, processing methods, types, and current trends in IT applications like SAP R/3. Learn about the importance of innovative IT applications, production and logistics management, marketing strategies, accounting and finance practices, and human resources integration. Understand how SAP R/3 plays a vital role in enterprise resource planning across various business functions. Delve into the challenges and benefits of integrating old transaction processing systems with e-commerce in organizations.

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Evolution of Transaction Processing Systems

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  1. Prof. Rushen Chahal Transaction Processing Systems

  2. Agenda • OLD transaction processing systems • Innovative IT applications • SAP R/3

  3. Old Transaction Processing Systems • Characteristics • Processing methods • Types • Trends

  4. Characteristics • Large volume, storage, output • Internal usage • Scheduled time frame • Structured I/O • High I/O speed • Accuracy, integrity, security, reliability • Inquiry

  5. Processing Methods • Batch • Online • Online realtime

  6. Types • Ordering • Ledger • A/P & A/R • Receiving & shipping • Inventory • Fixed Assets • Payroll • Human resources

  7. Trends • Internet & EDI • Networking: client/server, web-based • Outsourcing

  8. Agenda • Transaction processing systems • Innovative IT applications • SAP R/3

  9. Production/Operations & Logistics • Supply chain management (Extranet, EDI) • In-house logistics and material management (Intranet) • Planning production/operations (Intranet, Extranet) • Material requirement planning (MRP) • Manufacturing resource planning (MRP II) • Just-in-Time systems (JIT)

  10. Production/Operations & Logistics • Project Management (Intranet) • Program Evaluation and Review Technique (PERT) • Critical Path Method (CPM) • Design & manufacturing (Intranet) • Computer-aided design (CAD) • Computer-aided engineering (CAE) • Computer-aided manufacturing (CAM) • Computer-integrated manufacturing (CIM) • 20% IT • 80% business process & people (planning & management)

  11. Marketing & Sales • Customer profile (market database) • Mass customization (Internet) • Customer services (Internet) • Advertisement (Internet) • Telemarketing (phone, TV) • Distribution network (Extranet) • Price, product, service, sales, trend (databases)

  12. Accounting & finance • Budgeting (Internet, Extranet, Internet, database, DSS, ES) • Economic forecasting (Extranet, Internet, Internet, DSS, ES, database) • Investment (Internet, DSS, ES, database) • Auditing (DSS, ES)

  13. Human Resources • Recruitment (Internet, database) • Training (ES, Intranet) • Performance (ES) • Benefit (Intranet)

  14. Agenda • Transaction processing systems • Innovative IT applications • SAP R/3

  15. SAP R/3 • Enterprise resource planning • Accounting • Sales • Manufacturing • Human resources • Multinational • Complex • Expensive

  16. Points to Remember • Transaction processing systems • Innovative IT applications • SAP R/3

  17. Discussion Question • Does your organization integrate old transaction processing systems with e-commerce? • Yes, any problem? • No, why?

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