1. Information Systems within the Organization
CHAPTER 10
Information Systems within the Organization

2. Announcements Assignments: Project 5 Quiz 2 – Weds.
Due Today (before midnight)
Quiz 2 – Weds.
Scenario Manager

3. Today’s Lecture
Chapter 10:
Focus on Inside the Organization

4. CHAPTER OUTLINE 10.1 Transaction Processing Systems
10.2 Functional Area Information Systems
10.3 Enterprise Resource Planning Systems
10.4 Reports

5. Opening Case: Is Baseball a Science?
Source: Fotoline/Shutterstock

6. 10.1 Transaction Processing Systems (TPS)
Types of Data Processing:
Batch Processing
Online Transaction Processing (OLTP)
Monitors, collects, stores and processes data generated from transactions.
(Don’t forget the cover sheet)
Example: This grocery store clerk is using a bar code scanner that produces data captured by a transaction processing system
Note: the barcode scanner is an example of source data automation
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7. How Transaction Processing Systems Manage Data

8. 10.2 Functional Area Information Systems
Functional Area IS are designed to support a functional area by increasing its internal effectiveness and efficiency in the following areas:
Accounting
Finance
Marketing
Operations (POM)
Human Resources Management

9. Examples of Information Systems Supporting the Functional Areas

10. 10.3 Enterprise Resource Planning Systems (ERP)
Information Silos F I N A C E H R M K T G I T
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ERP systems integrate the functional areas of the organization by enabling seamless information flows across them.

11. ERP Systems (continued)
A business process is a set of related steps or procedures designed to produce a specific outcome.

12. SAP Modules (aka “Solutions”)
SAP Solutions:
Financials
Human Resources
Customer Relationship Management
Supplier Relationship Management
Product Lifecycle Management
Supply Chain Management
Business Intelligence
Chapter 11

13. Benefits of ERP Systems
Organizational flexibility, agility, and adaptability.
Decision Support (improve managers’ ability to make better, more timely decisions)
Quality and Efficiency (improve customer service, production, and distribution)

14. Limitations of ERP Systems
May require customization or changes to existing business processes
Can be complex, expensive, and time consuming to implement.

15. 10.4 Functional Area Information Systems Reports
Routine reports (e.g. Daily Error Reports)
Ad hoc (on demand) reports
Drill-down reports (e.g. sales by region)
Key-indicator reports (e.g. cash on hand)
Comparative reports (e.g. business unit performance)
Exception reports

16. Case – Managing ERP
Describe what it means for an ERP system to be inflexible.
Describe the pros and cons of tailoring your organization’s business processes to align with the procedures in an ERP system.

17. Chapter 10 Review
Explain the purposes of transaction processing systems, and provide at least one example of how businesses use these systems.

18. Chapter 10 Review (continued)
Define functional area information systems, and provide an example of the support they provide for each functional area of the organization.

19. Chapter 10 Review (continued)
Explain the purpose of enterprise resource planning systems. Identify advantages & drawbacks to implementing an ERP system.

20. Chapter 10 Review (continued)
Discuss the three major types of reports generated by the functional area information systems and enterprise resource planning systems.