Transaction Processing & Enterprise Resource Planning Systems Chapter 9

An Overview of Transaction Processing Systems

TPS, MIS/DSS, and Special Information Systems

Traditional Transaction Processing Methods & Objectives  Batch processing systems  On-line transaction processing (OLTP)  On-line entry with delayed processing  Maintain a high degree of accuracy and integrity  Produce timely documents & reports

Traditional Transaction Processing Methods & Objectives  Increase labor efficiency  Help provide improved service  Help build and maintain customer loyalty  Achieve competitive advantage

Batch versus On-Line Transaction Processing

Integration of a Firm’s TPSs

Examples of Transaction Processing

Transaction Processing Systems

Transaction Processing Activities  Data collection –Should be collected at source –Should be recorded accurately, in a timely fashion  Data editing –check for validity and correctness  Data correction –arises for data editing

Document Production and Reports  What are some data manipulation tasks?  What kind of documents are produced?

Control & Management Issues  Business resumption planning –Anticipating disasters  Disaster recovery –Actually implementing the resumption plan

Order Processing Systems  Order entry  Sales configuration  Shipment planning  Shipment execution  Invoicing  Customer relationship management (CRM)  Routing and scheduling  Scheduling systems

Document Production Reports

Traditional Transaction Processing Applications

Order Processing Systems

Order Entry System

Shipment Planning

Inventory Status Report

Invoicing

Customer Relationship Management

The 15 Top-Rated CRM Software Packages

Purchasing Systems  Inventory control  Purchase order processing  Receiving  Accounts payable

Purchasing Systems

Accounts Payable

Accounting Systems

Accounts Receivable

Accounts Receivable Aging Report

Typical Paycheck Stub

Payroll Journal

General Ledger

ERP Software Vendors

International Issues  Different languages and cultures  Disparities in information systems infrastructure  Varying laws and custom rules  Multiple currencies

Enterprise Resource Planning  Real-time monitoring of business functions  Supports human resources, sales, and distribution  Accommodates the different ways each company runs business

Advantages of ERP  Eliminates costly, inflexible legacy systems  Improved technology infrastructure  Improved work processes  Increased data access for decision making

Disadvantages of ERP  Expense & time  Radical change  Integrating with other systems  One vendor risks

ERP System

Summary  Transaction Processing Systems - consist of all components of a CBIS, including databases, telecommunications, and people  Transaction Processing Systems Methods - batch, on-line, and on-line with delayed processing  Enterprise resource planning (ERP) software - a set of integrated programs that manage a company’s vital business operations for an entire multisite, global organization