1. Business and Specialized IS Enterprise Systems ทัศนวรรณ ศูนย์กลาง ภาควิชาคอมพิวเตอร์ คณะ วิทยาศาสตร์

2. เนื้อหาบรรยาย Overview of Information Systems (IS) Information Technology Concepts Business and Specialized IS System Development IS in Business and Society Components of an IS 2

3. Business and Specialized IS Electronic and Mobile Commerce Enterprise Systems Information and Decision Support Systems Specialized IS 3

4. Overview Transaction Processing System (TPS) Enterprise Resource Planning System (ERP) 4

5. Transaction Processing System (TPS)

6. Principles of Information Systems, Ninth Edition 6 An Overview of Enterprise Systems Transaction processing systems (TPSs) –Process detailed data necessary to update records about fundamental business operations –Include order entry, inventory control, payroll, accounts payable, accounts receivable, general ledger, etc. –Provide data for other business processes Management information system/decision support system (MIS/DSS) Knowledge management systems

7. Principles of Information Systems, Ninth Edition An Overview of Enterprise Systems

8. Principles of Information Systems, Ninth Edition 8 Traditional Transaction Processing Methods and Objectives Batch processing system –Data processing in which business transactions are Accumulated over a period of time Prepared for processing as a single unit or batch Online transaction processing (OLTP) –Data processing in which each transaction is processed immediately

9. Principles of Information Systems, Ninth Edition Traditional Transaction Processing Methods and Objectives

10. Principles of Information Systems, Ninth Edition Traditional Transaction Processing Methods and Objectives

11. Principles of Information Systems, Ninth Edition 11 Organizations expect their TPSs to: –Process data generated by and about transactions –Maintain a high degree of accuracy and integrity –Avoid processing fraudulent transactions –Produce timely user responses and reports Traditional Transaction Processing Methods and Objectives

12. Principles of Information Systems, Ninth Edition 12 A TPS typically includes the following types of systems: – Order processing systems – Accounting systems – Purchasing systems Traditional Transaction Processing Methods and Objectives

13. Principles of Information Systems, Ninth Edition Traditional Transaction Processing Methods and Objectives

14. Principles of Information Systems, Ninth Edition TPS for Small and Medium- Size Enterprises (SMEs) The city of Lexington, Kentucky –Implemented the Accu-Fund software and decreased the time to close the books at the end of each month by as much as 20 percent

15. Principles of Information Systems, Ninth Edition TPS for SMEs

16. Principles of Information Systems, Ninth Edition 16 Transaction Processing Activities TPSs –Capture and process data that describes fundamental business transactions –Update databases –Produce a variety of reports

17. Principles of Information Systems, Ninth Edition Data Collection

18. Principles of Information Systems, Ninth Edition 18 Data Collection (continued) Capturing and gathering all data necessary to complete the processing of transactions Data collection can be: –Manual –Automated via special input devices Data should be: –Collected at source –Recorded accurately, in a timely fashion

19. Principles of Information Systems, Ninth Edition Data Collection (continued)

20. Principles of Information Systems, Ninth Edition 20 Data Editing Checking data for validity and completeness to detect any problems Examples –Quantity and cost data must be numeric –Names must be alphabetic

21. Principles of Information Systems, Ninth Edition 21 Data Correction Reentering data that was not typed or scanned properly Error messages must specify the problem so proper corrections can be made

22. Principles of Information Systems, Ninth Edition 22 Data Manipulation Performing calculations and other data transformations related to business transactions Can include: –Classifying data –Sorting data into categories –Performing calculations –Summarizing results –Storing data in the organization’s database for further processing

23. Principles of Information Systems, Ninth Edition 23 Data Storage Updating one or more databases with new transactions After being updated, this data can be further processed and manipulated by other systems

24. Principles of Information Systems, Ninth Edition 24 Document Production and Reports Generating output records, documents, and reports –Hard-copy paper reports –Displays on computer screens Results from one TPS can be inputs to another system

25. Principles of Information Systems, Ninth Edition 25 Control and Management Issues TPSs are critical to the operation of most firms Many business activities would come to a halt if supporting TPSs failed To ensure reliable operation of their TPSs, firms must engage in disaster recovery planning and TPS audits

26. Principles of Information Systems, Ninth Edition 26 Disaster Recovery Plan A firm’s plan to recover data, technology, and tools that support critical information systems and necessary information systems components Critical business information systems –TPSs that directly affect the cash flow of the firm The most dramatic causes of business disasters –Fires, hurricanes, floods, earthquakes, and tornados

27. Principles of Information Systems, Ninth Edition 27 TPS Audit Attempts to answer the following questions: –Does the system meet the business need for which it was implemented? –What procedures and controls have been established? –Are these procedures and controls being used properly? –Are the information systems and procedures producing accurate and honest reports?

28. Enterprise Resource Planning System (ERP)

29. Principles of Information Systems, Ninth Edition 29 An Overview of ERP Enterprise resource planning (ERP) –Set of integrated programs that manage a company’s vital business operations for an entire multisite, global organization Business process –Set of coordinated and related activities that takes one or more kinds of input and creates an output of value to the customer of that process

30. Principles of Information Systems, Ninth Edition An Overview of ERP

31. Principles of Information Systems, Ninth Edition 31 An Overview of ERP ERP systems –Evolved from materials requirement planning systems (MRP) developed in the 1970s Large organizations –The first to take on the challenge of implementing ERP

32. Principles of Information Systems, Ninth Edition 32 Advantages of ERP Improved access to data for operational decision making Elimination of costly, inflexible legacy systems Improvement of work processes Upgrade of technology infrastructure

33. Principles of Information Systems, Ninth Edition 33 Disadvantages of ERP Expense and time in implementation Difficulty implementing change Difficulty integrating with other systems Risks in using one vendor Risk of implementation failure

34. Principles of Information Systems, Ninth Edition ERP for SMEs Many SMEs elect to implement open source ERP systems Powerful advantage for SMEs –The lower cost of open source ERP systems

35. Principles of Information Systems, Ninth Edition Business Intelligence Recognized as an essential component of an organization’s ERP system Tools are used to: –Access all the operational data captured in the ERP database –Analyze performance on a daily basis –Highlight areas for improvement –Monitor the results of business strategies

36. Principles of Information Systems, Ninth Edition 36 Production and Supply Chain Management Process –Sales forecasting –Sales and operations plan (S&OP) –Demand management –Detailed scheduling –Materials requirement planning –Purchasing –Production

37. Principles of Information Systems, Ninth Edition 37 CRM and Sales Ordering Customer relationship management (CRM) –Helps a company manage all aspects of customer encounters Key features of a CRM system –Contact management –Sales management –Customer support –Marketing automation –Analysis

38. Principles of Information Systems, Ninth Edition CRM and Sales Ordering

39. Principles of Information Systems, Ninth Edition CRM and Sales Ordering Sales ordering –The set of activities that must be performed to capture a customer sales order –Essential steps include: Recording the items to be purchased Setting the sales price Recording the order quantity

40. Principles of Information Systems, Ninth Edition 40 Financial and Managerial Accounting General ledger –Main accounting record of a business ERP system –Captures transactions entered by workers in all functional areas of the business –Creates associated general ledger record to track the financial impact of the transaction

41. Principles of Information Systems, Ninth Edition 41 Financial and Managerial Accounting Financial accounting –Captures and records all transactions that affect a company’s financial state –Uses these documented transactions to prepare financial statements to external decision makers Managerial accounting –Provides data to enable the firm’s managers to make decisions about current and future operations

42. Principles of Information Systems, Ninth Edition 42 Hosted Software Model for Enterprise Software Many business application software vendors –Are pushing the use of the hosted software model for SMEs Using the hosted software model –Means the small business firm does not need to employ a full-time IT person to maintain key business applications

43. Principles of Information Systems, Ninth Edition Hosted Software Model for Enterprise Software

44. Principles of Information Systems, Ninth Edition 44 International Issues Associated with Enterprise Systems Challenges that must be met by an enterprise system of a multinational company include: –Different languages and cultures –Disparities in IS infrastructure –Varying laws and customs rules –Multiple currencies

45. Principles of Information Systems, Ninth Edition 45 Different Languages and Cultures In some cultures people do not routinely work in teams in a networked environment Multinational companies –Can establish close connections with their business partners –Roll out standard IS applications for all to use

46. Principles of Information Systems, Ninth Edition 46 Disparities in Information System Infrastructure Lack of a robust or a common information infrastructure can create problems Many countries’ telecommunications services are controlled by a central government or operated as a monopoly –No incentives to provide fast and inexpensive customer service

47. Principles of Information Systems, Ninth Edition 47 Varying Laws and Customs Rules Numerous laws can affect collection and dissemination of data Examples: –Labor laws in some countries prohibit recording of worker performance data –Some countries have laws limiting the trans- border flow of data linked to individuals Trade custom rules between nations –North American Free Trade Agreement (NAFTA)

48. Principles of Information Systems, Ninth Edition 48 Multiple Currencies Enterprise system of multinational companies must conduct transactions in multiple currencies Systems must: –Be current with foreign currency exchange rates –Handle reporting and other transactions –Issue vendor payments and customer statements –Record retail store payments –Generate financial reports in the currency of choice

49. Principles of Information Systems, Ninth Edition Leading ERP Systems ERP systems are commonly used in: –Manufacturing companies –Colleges and universities –Professional service organizations –Retailers –Healthcare organizations

50. Principles of Information Systems, Ninth Edition 50 Summary Transaction processing systems (TPSs) –Are at the heart of most information systems in businesses today Batch and online processing –Methods of transaction processing systems TPSs perform the following basic activities: –Data collection –Data editing –Data correction

51. Principles of Information Systems, Ninth Edition Summary (continued) TPS audit attempts to answer four basic questions –Does the system meet the business need for which it was implemented? –What procedures and controls have been established? –Are these procedures and controls being used properly? –Are the information systems and procedures producing accurate and honest reports

52. Principles of Information Systems, Ninth Edition 52 Summary (continued) Enterprise resource planning (ERP) –Software that supports the efficient operation of business processes Most firms use ERP systems to: –Support business intelligence –Production and supply chain management –Customer relationship management and sales ordering –Financial and managerial accounting

53. References TPS – http://www.thaiall.com/mis/mis09.htm http://www.thaiall.com/mis/mis09.htm 53