Information Systems within the Organization CHAPTER 11 Information Systems within the Organization

CHAPTER OUTLINE 11.1 Transaction Processing Systems 11.2 Functional Area Information Systems 11.3 Enterprise Resource Planning Systems 11.4 Reports

LEARNING OBJECTIVES Explain the purpose of transaction processing systems Explain the types of support information systems can provide for each functional area of the organization Identify advantages and drawbacks to businesses implementing an enterprise resource planning system Discuss the three major types of reports generated by the functional area information systems and enterprise resource planning systems, providing examples of each type

11.1 Transaction Processing Systems (TPS)

Transaction Processing Systems (TPS) Batch Processing Online Transaction Processing (OLTP)

11.2 Functional Area Information Systems

Functional Area Information Systems Functional Area Information Systems are designed to support a functional area by increasing its internal effectiveness and efficiency in the following areas: Accounting Finance Marketing Operations (POM) Human Resources Management

11.3 Enterprise Resource Planning Systems (ERP)

Enterprise Resource Planning Systems (ERP) ERP systems integrate the functional areas of the organization by enabling seamless information flows across them.

SAP Modules SAP Solutions: Financials Human Resources Customer Relationship Management Supplier Relationship Management Product Lifecycle Management Supply Chain Management Business Intelligence

Benefits of ERP Systems They can make organizations more flexible, agile, and adaptive. They can improve managers’ ability to make better, more timely decisions. They can improve customer service, production, and distribution.

Limitations of ERP Systems May require organizations to change existing business processes to fit the predefined business processes of the ERP software. Can be complex, expensive, and time consuming to implement.

11.4 Functional Area Information Systems Reports

Functional Area Information Systems Reports Routine reports Ad hoc (on demand) reports Drill-down reports Key-indicator reports Comparative reports Exception reports

Types of Reports Summary Report Detailed report Drill-down report Key-indicator report Comparative report Exception Report

Closing Case #1 Truck Manufacturer Incorporates Information Systems in Trucks The Problem The Solution The Results

Closing Case #2 Hilton Embraces Collaboration with Information Technology Partners The Problem The Solution The Results