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Transaction Processing & Enterprise Resource Planning Systems

Transaction Processing & Enterprise Resource Planning Systems. Chapter 9. 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.

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Transaction Processing & Enterprise Resource Planning Systems

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  1. Transaction Processing & Enterprise Resource Planning Systems Chapter 9 MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  2. 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. MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  3. 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. MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  4. 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. MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  5. An Overview of Transaction Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  6. TPS, MIS/DSS, and Special Information Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  7. 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 MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  8. Traditional Transaction Processing Methods & Objectives • Increase labor efficiency • Help provide improved service • Help build and maintain customer loyalty • Achieve competitive advantage MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  9. Batch versus On-Line Transaction Processing MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  10. Integration of a Firm’s TPSs MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  11. Examples of Transaction Processing MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  12. Transaction Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  13. Transaction Processing Activities • Data collection • Should be collected at source • Should be recorded accurately, in a timely fashion • Data editing • Data correction MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  14. Document Production and Reports MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  15. Control & Management Issues • Business resumption planning • Disaster recovery • Backups MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  16. Transaction Processing Audit • Does the system meet its business requirements? • Are there procedures and controls? • Are the procedures & controls properly used? MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  17. Order Processing Systems • Order entry • Sales configuration • Shipment planning • Shipment execution • Invoicing • Customer relationship management (CRM) • Routing and scheduling • Scheduling systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  18. Document Production Reports MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  19. Traditional Transaction Processing Applications MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  20. Order Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  21. Order Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  22. Order Entry System MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  23. Shipment Planning MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  24. Inventory Status Report MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  25. Invoicing MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  26. Customer Relationship Management MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  27. The 15 Top-Rated CRM Software Packages MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  28. Purchasing Systems • Inventory control • Purchase order processing • Receiving • Accounts payable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  29. Purchasing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  30. Accounts Payable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  31. Accounts Payable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  32. Accounting Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  33. Accounts Receivable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  34. Accounts Receivable Aging Report MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  35. Typical Paycheck Stub MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  36. Payroll Journal MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  37. General Ledger MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  38. General Ledger MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  39. ERP Software Vendors MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  40. International Issues • Different languages and cultures • Disparities in information systems infrastructure • Varying laws and custom rules • Multiple currencies MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  41. Enterprise Resource Planning MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  42. Enterprise Resource Planning • Real-time monitoring of business functions • Supports human resources, sales, and distribution • Accommodates the different ways each company runs business MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  43. Advantages of ERP • Eliminates costly, inflexible legacy systems • Improved technology infrastructure • Improved work processes • Increased data access for decision making MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  44. Disadvantages of ERP • Expense & time • Radical change • Integrating with other systems • One vendor risks MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  45. ERP System MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  46. Business Application Programming Interface (BAPI) MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

  47. 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 MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan

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