1. Information Systems within the Organization
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 ERP Support for Business Processes 10.5 Reports

3. LEARNING OBJECTIVES
1. Explain the purpose of transaction processing systems.
2. Explain the types of support information systems can provide for each functional area of the organization.
3. Identify advantages and drawbacks to businesses implementing an enterprise resource planning system.

4. LEARNING OBJECTIVES
4. Describe the three main business processes supported by ERP systems.
5. Discuss the three major types of reports generated by the functional area information systems and enterprise resource planning systems, providing examples 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:
Financial Planning and Budgeting
Managing Financial Transactions
Investment Management
Control and Auditing

9. Managing Financial Transactions
Global stock exchanges
Managing multiple currencies
Virtual close
Expense management automation (EMA)

10. Control and Auditing Budgetary control Auditing
Financial ratio analysis

11. Information Systems for Production/ Operations Management
In-House Logistics and Materials Management
Inventory Management
Quality Control
Planning Production and Operations
Computer-Integrated Manufacturing
Product Life Cycle Management

12. Information Systems for Human Resource Management
Recruitment
Human Resources Development
Human Resources Planning and Management

13. 10.3 Enterprise Resource Planning Systems (ERP)

14. Enterprise Resource Planning Systems (ERP)
Benefits:
Limitations:
Major causes of ERP implementation failure:

15. Implementing ERP Systems
On-Premise ERP Implementation
Software-as-a-Service
Benefits and Limitations of each:

16. Cloud Based ERP Systems
Advantages:
Disadvantages:

17. 10.4 ERP Support for Business Processes

18. The Procurement, Fulfillment, and Production Processes
The Procurement Process
The Fulfillment Process
The Production Process

19. Interorganizational Processes: ERP with SCM and CRM
ERP SCM
ERP CRM

20. 10.5 Reports

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

22. Closing Case
The Problem
The Solution
The Results