2. 8-1 Transaction Processing, Innovative Functional Systems, and Supply Chain Integration

3. 8-2 Functional Information Systems Cross functional boundaries Porter’s value chain model and supply chain Major characteristics

4. 8-3 Major Characteristics Federation of smaller systems Integrated / independent systems Corporate systems interface Environmental interface Support three levels: –Operational –Managerial –Strategic

5. 8-4 Transaction Processing Information Systems Computerization of routine transaction processes Objectives of Transaction Processing Systems (TPS) Activities and methods of TPS Client / server and internet-based TPS Typical tasks

6. 8-5 Objectives of TPS Efficient and effective operation of the organization Provide timely documents and reports Increase the competitive advantage Data for tactical and strategic systems Safeguard assets Security of information

7. 8-6 Internet Transaction Processing Flexibility to accommodate unpredictable growth Cost effectiveness Interactive automatic billing Timely search Multimedia data

8. 8-7 Internet Transaction Processing High data throughput to support queries requiring massive file size Fast response time Effective storage

9. 8-8 Typical Tasks in TPS Order processing The ledger Accounts payable and receivable Receiving and shipping Fixed assets management

10. 8-9 Typical Tasks in TPS Payroll Personnel files and skills inventory Government reports Periodic reports and statements

11. 8-10 Innovative IT Applications in the Functional Areas Managing production/operations and logistics Managing marketing and sales Managing the accounting and finance systems Managing human resource systems

12. 8-11 Managing Production/Operations and Logistics In-house logistics and material management Planning production / operations Automating design work and manufacturing Computer-Integrated Manufacturing (CIM)

13. 8-12 In-House Logistics and Material Management Logistics management –Ordering, purchasing, inbound and outbound logistics Inventory management Quality control

14. 8-13 Planning Production / Operations Material Requirement Planning (MRP) Manufacturing Resource Planning (MRP II) Just-In-Time systems (JIT) Project management Short-term schedules

15. 8-14 Planning Production / Operations Computer-Aided Design (CAD) Computer-Aided Engineering (CAE) Computer-Aided Manufacturing (CAM) Computer-Integrated Manufacturing (CIM)

16. 8-15 Managing Marketing and Sales Channel systems Customer profiles and preference analysis Prospective customer lists and marketing databases Customer inquiry systems and automated help desk

17. 8-16 Managing Marketing and Sales Telemarketing Distribution channels Improving sales at retail stores Marketing management

18. 8-17 Marketing Management Pricing Salesperson productivity Product profitability analysis Sales analysis and trends New product, service and market planning

19. 8-18 Managing the Accounting and Finance Systems Managing financial transactions Financial planning and budgeting Financial and economic forecasting Planning for incoming funds Budgeting

20. 8-19 Managing the Accounting and Finance Systems Capital budgeting Investment management Access to financial and economic reports Financial analysis Control and auditing –Budgetary control –Auditing

21. 8-20 Managing the Accounting and Finance Systems Financial health analysis Profitability analysis and cost control Product pricing

22. 8-21 Managing Human Resource Systems Recruitment Position inventory Employee selection Human resource maintenance and development

23. 8-22 Managing Human Resource Systems Performance evaluation Training and human resource development Turnover, tardiness, and absenteeism analysis

24. 8-23 Human Resource Planning and Management - Labor Negotiations Personnel planning Succession planning Labor - management negotiations Benefits administration Intranet applications

25. 8-24 Integrating Functional Systems Reasons for integration Enterprise Resource Planning (ERP) and SAP software

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