1. CHAPTER 10 Information Systems within the Organization

2. CHAPTER OUTLINE 10.1 Transaction Processing Systems 10.2 Functional Area Information Systems 10.3 Enterprise Resource Planning Systems 10.4 Reports

3. LEARNING OBJECTIVES 1. Explain the purposes of transaction processing systems, and provide at least one example of how businesses use these systems. 2. Define functional area information systems, and provide an example of the support they provide for each functional area of the organization.

4. LEARNING OBJECTIVES 3. Explain the purpose of enterprise resource planning systems, and identify four advantages and four drawbacks to implementing an ERP system. 4. Discuss the three major types of reports generated by the functional area information systems and enterprise resource planning systems, and provide an example of each type.

5. 10.1 Transaction Processing Systems (TPS)

6. Transaction Processing Systems (TPS) – Batch Processing – Online Transaction Processing (OLTP)

7. 10.2 Functional Area Information Systems

8. 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

9. 10.3 Enterprise Resource Planning Systems (ERP)

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

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

12. 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.

13. 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.

14. 10.4 Functional Area Information Systems Reports

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

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

17. Closing Case The Problem The Solution The Results