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Transaction Processing & Enterprise Resource Planning Systems

This chapter provides an overview of transaction processing systems (TPS) and enterprise resource planning (ERP) systems. It covers traditional TPS methods and objectives, batch processing systems, online transaction processing (OLTP), and data processing activities. The chapter also discusses order processing systems, purchasing systems, international issues, and the advantages and disadvantages of ERP systems.

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Transaction Processing & Enterprise Resource Planning Systems

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  1. 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

  17. 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

  39. 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 systemand discuss the advantages and disadvantages associated with the implementation of such a system.

  49. End of Chapter 9

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