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Transaction Processing & Enterprise Resource Planning Systems Chapter 9
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An Overview of Transaction Processing Systems
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TPS, MIS/DSS, and Special Information Systems
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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
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Traditional Transaction Processing Methods & Objectives Increase labor efficiency Help provide improved service Help build and maintain customer loyalty Achieve competitive advantage
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Batch versus On-Line Transaction Processing
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Integration of a Firm’s TPSs
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Examples of Transaction Processing
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Transaction Processing Systems
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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
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Document Production and Reports What are some data manipulation tasks? What kind of documents are produced?
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Control & Management Issues Business resumption planning –Anticipating disasters Disaster recovery –Actually implementing the resumption plan
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Order Processing Systems Order entry Sales configuration Shipment planning Shipment execution Invoicing Customer relationship management (CRM) Routing and scheduling Scheduling systems
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Document Production Reports
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Traditional Transaction Processing Applications
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Order Processing Systems
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Order Entry System
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Shipment Planning
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Inventory Status Report
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Invoicing
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Customer Relationship Management
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The 15 Top-Rated CRM Software Packages
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Purchasing Systems Inventory control Purchase order processing Receiving Accounts payable
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Purchasing Systems
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Accounts Payable
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Accounting Systems
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Accounts Receivable
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Accounts Receivable Aging Report
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Typical Paycheck Stub
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Payroll Journal
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General Ledger
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ERP Software Vendors
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International Issues Different languages and cultures Disparities in information systems infrastructure Varying laws and custom rules Multiple currencies
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Enterprise Resource Planning Real-time monitoring of business functions Supports human resources, sales, and distribution Accommodates the different ways each company runs business
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Advantages of ERP Eliminates costly, inflexible legacy systems Improved technology infrastructure Improved work processes Increased data access for decision making
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Disadvantages of ERP Expense & time Radical change Integrating with other systems One vendor risks
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ERP System
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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
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