8-1 Transaction Processing, Innovative Functional Systems, and Supply Chain Integration

8-2 Functional Information Systems Cross functional boundaries Porter’s value chain model and supply chain Major characteristics

8-3 Major Characteristics Federation of smaller systems Integrated / independent systems Corporate systems interface Environmental interface Support three levels: –Operational –Managerial –Strategic

8-4 Transaction Processing Information Systems Computerization of routine transaction processes Objectives of Transaction Processing Systems (TPS) Activities and methods of TPS Client / server and internet-based TPS Typical tasks

8-5 Objectives of TPS Efficient and effective operation of the organization Provide timely documents and reports Increase the competitive advantage Data for tactical and strategic systems Safeguard assets Security of information

8-6 Internet Transaction Processing Flexibility to accommodate unpredictable growth Cost effectiveness Interactive automatic billing Timely search Multimedia data

8-7 Internet Transaction Processing High data throughput to support queries requiring massive file size Fast response time Effective storage

8-8 Typical Tasks in TPS Order processing The ledger Accounts payable and receivable Receiving and shipping Fixed assets management

8-9 Typical Tasks in TPS Payroll Personnel files and skills inventory Government reports Periodic reports and statements

8-10 Innovative IT Applications in the Functional Areas Managing production/operations and logistics Managing marketing and sales Managing the accounting and finance systems Managing human resource systems

8-11 Managing Production/Operations and Logistics In-house logistics and material management Planning production / operations Automating design work and manufacturing Computer-Integrated Manufacturing (CIM)

8-12 In-House Logistics and Material Management Logistics management –Ordering, purchasing, inbound and outbound logistics Inventory management Quality control

8-13 Planning Production / Operations Material Requirement Planning (MRP) Manufacturing Resource Planning (MRP II) Just-In-Time systems (JIT) Project management Short-term schedules

8-14 Planning Production / Operations Computer-Aided Design (CAD) Computer-Aided Engineering (CAE) Computer-Aided Manufacturing (CAM) Computer-Integrated Manufacturing (CIM)

8-15 Managing Marketing and Sales Channel systems Customer profiles and preference analysis Prospective customer lists and marketing databases Customer inquiry systems and automated help desk

8-16 Managing Marketing and Sales Telemarketing Distribution channels Improving sales at retail stores Marketing management

8-17 Marketing Management Pricing Salesperson productivity Product profitability analysis Sales analysis and trends New product, service and market planning

8-18 Managing the Accounting and Finance Systems Managing financial transactions Financial planning and budgeting Financial and economic forecasting Planning for incoming funds Budgeting

8-19 Managing the Accounting and Finance Systems Capital budgeting Investment management Access to financial and economic reports Financial analysis Control and auditing –Budgetary control –Auditing

8-20 Managing the Accounting and Finance Systems Financial health analysis Profitability analysis and cost control Product pricing

8-21 Managing Human Resource Systems Recruitment Position inventory Employee selection Human resource maintenance and development

8-22 Managing Human Resource Systems Performance evaluation Training and human resource development Turnover, tardiness, and absenteeism analysis

8-23 Human Resource Planning and Management - Labor Negotiations Personnel planning Succession planning Labor - management negotiations Benefits administration Intranet applications

8-24 Integrating Functional Systems Reasons for integration Enterprise Resource Planning (ERP) and SAP software

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