1. Chapter 8
Transaction Processing, Electronic Commerce, & Enterprise Resource Planning Systems

2. TPS, MIS, DSS, and AI/ES (Figure 8.1)
Transaction Processing Systems (TPS)
Perform routine operations & serve as a foundation for other systems
Transactions
Basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, & payroll checks in an organization
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3. Batch vs. On-Line Transaction Processing (Figure 8.2)
Batch Processing
A system in which business transactions are accumulated over a period of time & prepared for processing as a single unit or batch
On-Line Transaction Processing (OLTP)
A system whereby each transaction is processed immediately, without the delay of accumulating transactions into a batch
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4. Integration and Objectives of TPS
Integration of TPS (Figure 8.3)
Objectives of TPS
Process data generated by & about transactions
Maintain a high degree of accuracy
Ensure data & information integrity and accuracy
Produce timely documents & reports
Increase labor efficiency
Help provide increased & enhanced service
Help build & maintain customer loyalty
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5. Simplified Overview of TPS (Figure 8.4)
Chapter 8
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6. DP Activities Common to TPS (Figure 8.5)
A Transaction Processing Cycle
Data Collection
Data Editing
Data Correction
Data Manipulation
Data Storage
Document Production
Source Data Automation: Process of capturing data at its source with minimal manual effort, entered directly into the computer without human intervention
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7. Control and Management Issues
Business Resumption Planning: Process of anticipating & providing for disasters
Disaster Recovery: Implementation of the business resumption plan
TPS Audit: Examination of the TPS in an attempt to answer 3 basic questions
Does the system meet the business need?
What procedures & controls have been established?
Are the procedures & controls being properly used?
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8. Traditional TPS Order Processing (Figure 8.7)
Processing an order from entry to delivery, including traditional accounting transactions
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9. Enterprise Resource Planning (ERP) (Table 8.5)
ERP: Real-time monitoring of business functions across the enterprise
Avalon Software Avalon CIM
qad.inc MRG/PRO
Oracle Oracle Manufacturing
SAP America SAP R/3
Baan Triton
PeopleSoft PeopleSoft
J.D. Edwards World
Software Vendor Name of Software
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10. Enterprise Resource Planning
Advantages
Eliminate costly, inflexible legacy systems
Provide improved work processes
Provide access to data for operational decision making
Upgrading technology infrastructure
Disadvantages
Time consuming, difficult, expensive to implement
Make radical changes in how a company operates
Lack of vendor responsiveness in light of high demand
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11. Example of an ERP System - SAP/R3
Clients in the SAP system
Application servers in the SAP system
Business application programming interfaces (BAPIs)
Database server in the SAP system
Objects in the SAP system
Repository
Tables
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12. SAP Three-Tier Client/Server Architecture (Figure 8.24)
Database servers hold data that are accessed & updated in real-time
Applications servers are used to execute client requests & to update master files
Client desktop computers: The R/3 system is able to support hundreds or thousands of clients (e.g., Pentium PCs)
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13. Business Application Programming Interface (BAPI) (Figure 8.25)
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14. Chapter 8 Case Case 3: FedEx and SAP team up (pp. 385-86) Chapter 8
IS for Management

15. Electronic Commerce (E-Commerce)
Business-to-business problems
Inadequate models
Integrating with existing systems
Improving relationships with suppliers, customers, & distributors
Consumer problems
Waiting for images to download
Security of credit information
Figuring out the ordering process
Currently a small part of all commerce
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16. 5 Stage Model of E-Commerce (Figure 8.22)
Stages consumers experience in the sales life cycle:
Search for & identify supplier(s)
Selection & negotiation
Purchasing
Product & service delivery
traditional delivery
electronic distribution
After-sales service
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17. Forecasted Volume of E-Commerce
Consumer E-Commerce $0.5 billion $ 7 billion
Business-to-business E-Commerce $8.0 billion $66 billion
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18. Purchasing Products & Services Electronically
Establish credit with suppliers
Secure E-Commerce transactions
Secure credit transactions
Secure Financial Transaction (SET)
Secure Sockets Layer (SSL)
Others
CyberCash
Electronic wallets, purses, etc.
Digicash options
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19. E-Commerce Everything you know about e-commerce is WRONG!
CEOs still have control
Online revenues do matter for justifying infrastructure
Profitability is good
It isn’t just clicks versus mortar
Business models may be different
Indirect channels are crucial partners
Going global includes importance of local image
Speed, speed & more speed
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20. E-C Components & Principles (1)
Search engines
Portals
Virtual community
Topical sites
Site design
Ease of use (linking structure, intuitiveness)
Robustness
Push vs. Pull
Push: Web sites can push customized information to consumer/business
Pull: Consumers/businesses have to search for information/product/service
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21. E-C Components & Principles (2)
Security
Firewalls
Encryption
Cookies
Privacy considerations
Collecting data
Changing data (includes merging data)
Notification of potential uses of data
Permission to use data for purposes not originally intended
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22. E-C Components & Principles (3)
E-Markets
Consumer auctions
B2B auctions & brokers
Travel services
One-click process patented
E-Payments
Cybercash
Credit cards
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23. E-C Components & Principles (4)
Applications
Bill paying
Education
Elections
Entertainment
Extranets
Intranets
Productivity tools
Purchasing
Research
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24. EC & Customer Service Customer service
4 out of 5 online purchasers have experienced a failed purchase
25% of those frustrated say they will never go back
8% rate of abandonment
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25. EC: Where To Now??? What are trends? What are technological advances?
Push vs. Pull
Push: Advances in technology push applications for the technology to be used
Pull: Business/consumer needs pull the technology to be developed to meet the needs
Permanence of the Web as “information space” (Tim Berners-Lee, 1999)
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IS for Management