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This chapter explores the fundamental aspects of Transaction Processing Systems (TPS) and Enterprise Resource Planning (ERP) systems, which are essential for managing data and business processes within organizations. Transaction events, such as sales and payroll, generate valuable data. TPS streamline transaction processing through methods like batch processing and Online Transaction Processing (OLTP). ERP systems integrate various functional areas, enabling seamless information flow and improved decision-making for managers. The chapter also highlights popular ERP software and the benefits and limitations of implementing such systems.
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Information Systems within the Organization Chapter 10
Transaction Processing Systems (TPSs) • Transaction – “any business event that generates data worth being captured and stored in a database.” (p.266) • Examples: a product manufactured, a service sold (hair cut), a person hired, a payroll check generated, merchandise sale, airline reservation, credit card purchase, etc. • Processing of transactions: • Batch processing • OLTP
Functional area information Systems (FAIS) • Increase the effectiveness and efficiency within each functional area of an organization • Provide information to low- and middle-level managers, typically in the form of reports
Accounting and Finance • Microsoft Dynamics • Peachtree • QuickBooks • Quicken • Sage • SAP • Lawson
Marketing, POM, HR • Marketing • CRM • Production/Operations Management • variety of software packages • Human Resources Management • Oracle • http://www.softwareadvice.com/hr/ • Kronos
By Industry • Healthcare • http://www.healthcare-informatics.com/article/100-companies-revenue-headliners • Conemaugh – McKesson, HL7 • Retail • http://www.micros.com/Solutions/ • Banking • variety of companies and applications offered
8.3 Enterprise Resource Planning Systems (ERP) The major objective of ERP systems: integrate the functional areas of the organization by enabling seamless information flows across them.
Enterprise Resource Planning Systems • Provide information necessary to control the business processes of an organization • What is ERP? • List of ERP software packages - Wikipedia, the free encyclopedia • List of ERP vendors - Wikipedia, the free encyclopedia • SAP United States - SAP ERP: Demos • SAP R/3
SAP Modules • SAP is moving away from describing their system as a set of modules, and now is using the term “solutions.” On their Website, SAP has structured their Solutions tab as follows: • Financials • Human Resources • Customer Relationship Management • Supplier Relationship Management • Product Lifecycle Management • Supply Chain Management • Business Intelligence
ERP II Systems • Inter-organizational ERP systems • Web-enabled links between a company’s key business systems (inventory and production) and its customers, suppliers, distributors, etc. • E-business suites • Oracle E-Business Suite • Oracle E-Business Suite applications • SAP’s mySAP
Benefits of ERP Systems • Organizational flexibility and agility • React quickly to changing business conditions • Capitalize on new business opportunities • Decision support • Better and more timely decisions • Quality and efficiency • By integrating and improving business processes resulting in improvements in quality of customer service, production and distribution
Limitations of ERP Systems • Business processes predefined by best practices developed by ERP vendor. • Need to change existing business processes to fit the predefined business processes of the software. • Extremely complex, expensive, and time consuming to implement.
Enterprise Application Integration (EAI) • Suitable for companies who do not wish to implement an ERP but still need to connect disparate systems. • Middleware is used to connect applications together.
Reports • Routine – scheduled intervals • Ad hoc (on demand) • Drill-down report • Key-indicator report • Comparative report • Exception – outside the norm • Inventory levels fall below a certain level
Summary Report A summary report is one type of routine report
Detailed Report A detailed report is another type of routine report
Drill-Down Report Drill-down report is a type of ad-hoc report
Key-Indicator Report Key-indicator report is a type of ad-hoc report
Comparative Report Comparative report is one type of ad-hoc report.
University of Pittsburgh • PeopleSoft • Student administration system • Web-based enterprise solution • Modules: Admissions, Campus community, Financial Aid, Student Records, and Student Financials • PRISM (Pitt’s Real Time Integrated Solutions for Management) • Enterprise Financial and Human Resources System • Web-based • Purchasing, General Ledger, Accounts Payable, HR, Payroll, Benefits, Time Keeping, and others