Information Systems for Business Operations Chapter 8

Business Information Systems Business Information Systems Production/ Operations MarketingHRM AccountingFinance CAE CAM Machine control Robotics Process control MRP Interactive marketing Sales mgt Advertising and promotion Product mgt Marketing mgt Market research Compensation analysis Capacity plan Personnel administration training and development reporting Accounts payable Acc. receivable Budgeting Cost accounting Fixed assets acc. General ledger Tax accounting Inventory control Order processing Payroll Cash mgt. Credit mgt. Investment mgt Capital Budgeting Financial forecasting Financial planning O’Brien p. 306

CIM  CAD  design of products and production processes  CAM  Robotics  Assembly and packing  Logistics and stock management  Maintenance  monitoring of equipment, automatic tuning, error diagnosis, preventive and corrective maintenance  Quality control  testing of raw materials, products and handling processes  Production management  coordination of production orders, supplies,... O’Brien p. 313

HR Information systems Strategic Systems Tactic Systems Operational systems Staffing Training and Compensation Development administration Succession Planning Performance appraisal planning. Contract costing Salary forecasting Labor cost Analysis Turnover analysis Training Effectiveness Career Matching Compensation Effectiveness Equity analysis Benefit preference Recruiting Workforce planning Skill assessment Performance evaluation Payroll control Benefits administration Manpower planning Labor force tracking O’Brien p. 315

Accounting Information Systems Sales order processing Billing Sales analysis Accounts receivable Cash Receipts General ledger Financial reporting Accounts payable Cash disbursement PurchasesPayroll Inventory processing Time keeping O’Brien p 323

Transactions e.g.: a client buys something on credit  required data on:  client  product  salesman  stock  newly generated transactions  credit checks  customer billing  inventory changes  increases in accounts receivable balances Transactions are events that occur as part of doing business such as: sales, purchases, deposits, withdrawals, refunds and payments O’Brien p 330

Transaction Processing Systems Data entry Transaction processing - Batch - Online Database maintenance Document and report Generation Inquiry processing Transaction processing cycle in 5 stages of data entry. O’Brien p. 332

Data Entry Coding and storing data, following predefined rules Traditional input  verification activities  conversion into standardized format examples:sales transaction automated input (POS,...) EDI/XML  Business transactions between computers of different partners direct exchange electronic mailbox provided by third parties

Source data automation  Reduced input risk  capture data as early as possible after a transaction or other event occurs (POS);  capture data as close as possible to the source that generates the data (salesperson);  capture data by using machine-readable media initially, instead of preparing written source documents (bar-code, mag.strip,…)  capture data that rarely changes by pre-recording it on machine-readable media, or by storing it in the computer system;  capture data directly without the use of data media by optical scanning.

Batch- versus real-time (on-line) processing  Transaction data are stored and gathered in batches and processed periodically  processing time is unknown for the user  when the transaction file is processed  hours or days after the data have been prepared  no interaction with the environment  results are transmitted afterwards  Transaction data are processed as soon as they are generated or recorded  user has immediate result  when the transaction is recorded  immediately after recording a transaction  permanent dialog between the program and the user  user friendly Batch processing OLTP Processing Update file Response time Interaction O’Brien p. 334

 cheap  safe  simple implementation  late error messages  control lists  not exact situation on every moment in time  unavoidable intermediate persons  database up-to-date  inquiries immediately answered  user friendly  complex systems  security problems  expensive communication  missing basic documents Batch processing OLTP Advantages Drawbacks Advantages and Drawbacks O’Brien p. 337