1. Information Systems within the Organization
CHAPTER 11
Information Systems within the Organization

2. CHAPTER OUTLINE
11.1 Transaction Processing Systems 11.2 Functional Area Information Systems 11.3 Enterprise Resource Planning Systems 11.4 Reports

3. LEARNING OBJECTIVES
Explain the purpose of transaction processing systems
Explain the types of support information systems can provide for each functional area of the organization
Identify advantages and drawbacks to businesses implementing an enterprise resource planning system
Discuss the three major types of reports generated by the functional area information systems and enterprise resource planning systems, providing examples of each type

4. 11.1 Transaction Processing Systems (TPS)

5. Transaction Processing Systems (TPS)
Batch Processing
Online Transaction Processing (OLTP)

6. 11.2 Functional Area Information Systems

7. Functional Area Information Systems
Functional Area Information Systems 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

8. 11.3 Enterprise Resource Planning Systems (ERP)

9. Enterprise Resource Planning Systems (ERP)
ERP systems integrate the functional areas of the organization by enabling seamless information flows across them.

10. SAP Modules SAP Solutions: Financials Human Resources
Customer Relationship Management
Supplier Relationship Management
Product Lifecycle Management
Supply Chain Management
Business Intelligence

11. Benefits of ERP Systems
They can make organizations more flexible, agile, and adaptive.
They can improve managers’ ability to make better, more timely decisions.
They can improve customer service, production, and distribution.

12. Limitations of ERP Systems
May require organizations to change existing business processes to fit the predefined business processes of the ERP software.
Can be complex, expensive, and time consuming to implement.

13. 11.4 Functional Area Information Systems Reports

14. Functional Area Information Systems Reports
Routine reports
Ad hoc (on demand) reports
Drill-down reports
Key-indicator reports
Comparative reports
Exception reports

15. Types of Reports Summary Report Detailed report Drill-down report
Key-indicator report
Comparative report
Exception Report

16. Closing Case #1 Truck Manufacturer Incorporates Information Systems in Trucks
The Problem
The Solution
The Results

17. Closing Case #2 Hilton Embraces Collaboration with Information Technology Partners
The Problem
The Solution
The Results