Transaction Processing & Enterprise Resource Planning Systems Chapter 9

2 Chapter 9 Outline An overview of Transaction Processing Systems Traditional Transaction Processing Applications Enterprise Resource Planning

3 An Overview of Transaction Processing Systems

4 TPS, MIS/DSS, and Special Information Systems

5 Traditional Transaction Processing Methods & Objectives Batch processing systems On-line transaction processing (OLTP) On-line entry with delayed processing Process data generated by and about transactions Process data generated for and about transactions Maintain a high degree of accuracy and integrity Produce timely documents & reports

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

7 Batch versus On-Line Transaction Processing

8 Integration of a Firm’s TPSs

9 Examples of Transaction Processing

10 Transaction Processing Systems

11 Transaction Processing Activities Data collection –Should be collected at source –Should be recorded accurately, in a timely fashion Data editing Data correction

12 Document Production and Reports

13 Control & Management Issues Business resumption planning Disaster recovery –Backups

14 Transaction Processing Audit Does the system meet its business requirements? Are there procedures and controls? Are the procedures & controls properly used?

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

16 Document Production Reports

Traditional Transaction Processing Applications

18 Order Processing Systems

19 Order Processing Systems

20 Order Entry System

21 Shipment Planning

22 Inventory Status Report

23 Invoicing

24 Customer Relationship Management

25 The 15 Top-Rated CRM Software Packages

26 Purchasing Systems Inventory control Purchase order processing Receiving Accounts payable

27 Purchasing Systems

28 Accounts Payable

29 Accounts Payable

30 Accounting Systems

31 Accounts Receivable

32 Accounts Receivable Aging Report

33 Typical Paycheck Stub

34 Payroll Journal

35 General Ledger

36 General Ledger

37 ERP Software Vendors

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

Enterprise Resource Planning

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

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

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

43 ERP System

44 Business Application Programming Interface (BAPI)

45 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

46 Principles and Learning Objectives An organization’s TPS must support the routine, day- to-day activities that occur in the normal course of business and help a company add value to its products and services. –Identify the basic activities and business objectives common to all transaction processing systems. –Describe the inputs, processing, and outputs for the transaction processing systems associated with order, purchasing, and accounting business processes.

47 Principles and Learning Objectives TPSs help multinational corporations form business links with their business partners, customers, and subsidiaries. –Identify the challenges that multinational corporations must face in planning, building, and operating their TPSs.

48 Principles and Learning Objectives Implementation of an enterprise resource planning system enables a company to achieve numerous business benefits through the creation of a highly integrated set of systems. –Define the term enterprise resource planning system and discuss the advantages and disadvantages associated with the implementation of such a system.

End of Chapter 9