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Information Systems within the Organization

Information Systems within the Organization. Chapter 10. Transaction Processing Systems (TPSs). Transaction – “any business event that generates data worth being captured and stored in a database.” (p.266)

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Information Systems within the Organization

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  1. Information Systems within the Organization Chapter 10

  2. Transaction Processing Systems (TPSs) • Transaction – “any business event that generates data worth being captured and stored in a database.” (p.266) • Examples: a product manufactured, a service sold (hair cut), a person hired, a payroll check generated, merchandise sale, airline reservation, credit card purchase, etc. • Processing of transactions: • Batch processing • OLTP

  3. How Transaction Processing Systems Manage Data

  4. Functional area information Systems (FAIS) • Increase the effectiveness and efficiency within each functional area of an organization • Provide information to low- and middle-level managers, typically in the form of reports

  5. Accounting and Finance • Microsoft Dynamics • Peachtree • QuickBooks • Quicken • Sage • SAP • Lawson

  6. Marketing, POM, HR • Marketing • CRM • Production/Operations Management • variety of software packages • Human Resources Management • Oracle • http://www.softwareadvice.com/hr/ • Kronos

  7. By Industry • Healthcare • http://www.healthcare-informatics.com/article/100-companies-revenue-headliners • Conemaugh – McKesson, HL7 • Retail • http://www.micros.com/Solutions/ • Banking • variety of companies and applications offered

  8. 8.3 Enterprise Resource Planning Systems (ERP) The major objective of ERP systems: integrate the functional areas of the organization by enabling seamless information flows across them.

  9. Enterprise Resource Planning Systems • Provide information necessary to control the business processes of an organization • What is ERP? • List of ERP software packages - Wikipedia, the free encyclopedia • List of ERP vendors - Wikipedia, the free encyclopedia • SAP United States - SAP ERP: Demos • SAP R/3

  10. ERP Systems (continued)

  11. SAP Modules • SAP is moving away from describing their system as a set of modules, and now is using the term “solutions.” On their Website, SAP has structured their Solutions tab as follows: • Financials • Human Resources • Customer Relationship Management • Supplier Relationship Management • Product Lifecycle Management • Supply Chain Management • Business Intelligence

  12. ERP II Systems • Inter-organizational ERP systems • Web-enabled links between a company’s key business systems (inventory and production) and its customers, suppliers, distributors, etc. • E-business suites • Oracle E-Business Suite • Oracle E-Business Suite applications • SAP’s mySAP

  13. Benefits of ERP Systems • Organizational flexibility and agility • React quickly to changing business conditions • Capitalize on new business opportunities • Decision support • Better and more timely decisions • Quality and efficiency • By integrating and improving business processes resulting in improvements in quality of customer service, production and distribution

  14. Limitations of ERP Systems • Business processes predefined by best practices developed by ERP vendor. • Need to change existing business processes to fit the predefined business processes of the software. • Extremely complex, expensive, and time consuming to implement.

  15. Enterprise Application Integration (EAI) • Suitable for companies who do not wish to implement an ERP but still need to connect disparate systems. • Middleware is used to connect applications together.

  16. Reports • Routine – scheduled intervals • Ad hoc (on demand) • Drill-down report • Key-indicator report • Comparative report • Exception – outside the norm • Inventory levels fall below a certain level

  17. Summary Report A summary report is one type of routine report

  18. Detailed Report A detailed report is another type of routine report

  19. Drill-Down Report Drill-down report is a type of ad-hoc report

  20. Key-Indicator Report Key-indicator report is a type of ad-hoc report

  21. Comparative Report Comparative report is one type of ad-hoc report.

  22. Exception Report

  23. University of Pittsburgh • PeopleSoft • Student administration system • Web-based enterprise solution • Modules: Admissions, Campus community, Financial Aid, Student Records, and Student Financials • PRISM (Pitt’s Real Time Integrated Solutions for Management) • Enterprise Financial and Human Resources System • Web-based • Purchasing, General Ledger, Accounts Payable, HR, Payroll, Benefits, Time Keeping, and others

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