MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan1 Transaction Processing & Enterprise Resource Planning Systems Chapter 9

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan2 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. Mathiyalakan3 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. Mathiyalakan4 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 system and discuss the advantages and disadvantages associated with the implementation of such a system.

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan5 An Overview of Transaction Processing Systems

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan6 TPS, MIS/DSS, and Special Information Systems

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan7 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. Mathiyalakan8 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. Mathiyalakan9 Batch versus On-Line Transaction Processing

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan10 Integration of a Firm’s TPSs

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan11 Examples of Transaction Processing

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan12 Transaction Processing Systems

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan13 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. Mathiyalakan14 Document Production and Reports

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan15 Control & Management Issues Business resumption planning Disaster recovery –Backups

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan16 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. Mathiyalakan17 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. Mathiyalakan18 Document Production Reports

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan19 Traditional Transaction Processing Applications

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan20 Order Processing Systems

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan21 Order Processing Systems

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan22 Order Entry System

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan23 Shipment Planning

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan24 Inventory Status Report

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan25 Invoicing

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan26 Customer Relationship Management

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan27 The 15 Top-Rated CRM Software Packages

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan28 Purchasing Systems Inventory control Purchase order processing Receiving Accounts payable

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan29 Purchasing Systems

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan30 Accounts Payable

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan31 Accounts Payable

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan32 Accounting Systems

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan33 Accounts Receivable

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan34 Accounts Receivable Aging Report

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan35 Typical Paycheck Stub

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan36 Payroll Journal

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan37 General Ledger

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan38 General Ledger

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan39 ERP Software Vendors

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan40 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. Mathiyalakan41 Enterprise Resource Planning

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan42 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. Mathiyalakan43 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. Mathiyalakan44 Disadvantages of ERP Expense & time Radical change Integrating with other systems One vendor risks

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan45 ERP System

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan46 Business Application Programming Interface (BAPI)

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan47 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