2. Handling the Present: Transaction Processing Systems Copyright © 2001 by Harcourt, Inc. All rights reserved Part 2

3. 2001 I. S. In Organizations Transaction processing system (TPS) Management Information systems (IS) Decision support systems (DSS)

4. 2001 T ransaction P rocessing S ystems Tracks daily, routine transactions –Order Entry –Payroll –Paying Bills Repetitious Link to customers, suppliers Operations personnel, supervisors

5. 2001 Transactions Processing Summary of TPS Characteristics

6. 2001 TPS DATA FEEDS MIS APPLICATIONS TPS ORDER PROCESSING MATERIALS RESOURCE PLANNING GENERAL LEDGER ORDER FILE PRODUCTION MASTER FILE ACCOUNTING FILES MIS MIS FILES SALES DATA UNIT PRODUCT COST PRODUCT CHANGE DATA EXPENSE DATA MIS REPORTS MANAGERS

7. 2001 M anagement I nformation S ystems (MIS) Serves Middle Management More historical Summary, Control oriented –Sales Summary Report Used in Decision Making Done periodically (scheduled) Exception Reports –Accounts Past Due Report

8. 2001

9. Office Automation Systems Paperless Office Data Workers Increase Productivity Used in Coordination and Communication –Word Processing –E-mail –Scheduling

10. 2001 D ecision S upport S ystems For “problem specific” decision Non-recurring decision “What-if” oriented –Interactive…run many scenarios Future oriented Source: TPS, MIS, External data Use statistical and modeling tools

11. 2001 Information System Cycle Transactions Data Storage Decisions Remember the Past Preparing for the Future Preparing for the Future Handling the Present Handling the Present People and Technology People and Technology I. S. In Organizations

12. 2001 I. S. In Organizations

13. 2001 Transactions Processing Batch processing –Banking Online processing –Point of sale (POS) transaction processing –UPC bar code –Data storage & reporting

14. 2001 POS Transaction Processing System Bar Code ReaderPoint of Sale TPS Receipt Customer Display Item Name and Price Item Name and Price Name and Price UPC Back Office Server UPC Update Inventory and Purchase Databases

15. 2001 Processing and Manipulating Transaction Data Querying Databases Classification of Data Updating Databases Combine with Other Data Summary Data Edited and Corrected Data Other Data Other Data

16. 2001 Business-to-business TPS Classification of Interorganizational Communications

17. 2001 Business-to-business TPS Value chain Supply chain Demand chain

18. 2001 Value Chain Activities which add a margin of value to the firm’s products or services Primary –Related to production and distribution of products and services Support –Organization Infrastructure –Employees and Management

19. 2001 Supply-chain Deals with –Managing warehouse –Inventory supplies –Distribution channels Find “bottlenecks” in operation Computer Applications address: –Demand, Supply, Manufacturing, Transportation, Distribution Need human coordination/communication

20. 2001 Demand-chain Predict what “WILL” happen Get “BIG” picture Use data to gain “Knowledge” on future trends vs. just what “HAS” happened DSS vs. MIS Front-end

21. 2001 Partnerships/Alliance Two companies sharing Information or Services to gain Strategic advantage –Banks and Airlines Name and Address files –UPS Shipping and Tracking

22. 4 - 21 PAST SLIDE NEXT SLIDE Copyright © 2001 by Harcourt, Inc. All rights reserved Remembering the Past with Organizational Memory Chapter 5