1. Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc. 8-1 Introduction to Information Technology Chapter 8: Functional, Enterprise, and Inter- organizational Systems

2. Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc. 8-2 Transaction Processing Systems  What is a transaction? Every business event that occurs during business operationsEvery business event that occurs during business operations Transaction processing systems (TPS) are designed to record and store the data that describes every business event that occursTransaction processing systems (TPS) are designed to record and store the data that describes every business event that occurs  TPSs provide foundation for all other information systems

3. Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc. 8-3 Typical TPS Tasks  Order processing  General ledger  Accounts payable and receivable  Inventory management, shipping, and receiving  Payroll  Periodic reports and statements

4. Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc. 8-4 How to Integrate Information Systems Connect existing systemsConnect existing systems  maximize the use of existing systems and allows the addition of new applications Using supply chain management softwareUsing supply chain management software  Overcomes the isolation of traditional departmental structure by integrating processing across several functional areas Use Enterprise Resource Planning softwareUse Enterprise Resource Planning software  control all major business processes with a single software architecture in real time  increased efficiency to improve quality, productivity, and profitability

5. Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc. 8-5 Inter-organizational Information Systems (IOS)  Electronic systems involving information flow among two or more organizations in an on- going relationship  Objective – efficient transaction processing  Many large businesses require suppliers to be linked to them though IOS applications

6. Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc. 8-6 Inter-organizational Systems (continued)  Basic Types of Inter-organizational Systems: Global systemsGlobal systems Electronic data interchange (EDI)Electronic data interchange (EDI) Electronic funds transfer (EFT)Electronic funds transfer (EFT) ExtranetsExtranets

7. Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc. 8-7 Issues in IOS / Global IS Design  Cultural differences  Economic differences  Political differences

8. Introduction to Information Technology, 2nd Edition Turban, Rainer & Potter © 2003 John Wiley & Sons, Inc. 8-8 Copyright © 2003 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United Stated Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein. THE END