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C H A P T E RS 8 -9 Transaction Processing, Electronic Commerce, and C H A P T E RS 8 -9 Transaction Processing, Electronic Commerce, and Enterprise Resource Planning Systems

Transaction Processing Bel Air Mc. Donalds Transaction Processing Bel Air Mc. Donalds

TPS, MIS, DSS, and AI/ES Transaction Processing Systems (TPS) • Performs routine operations and TPS, MIS, DSS, and AI/ES Transaction Processing Systems (TPS) • Performs routine operations and serve as a foundation for other systems. AI/ES Transactions • The basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, and payroll checks in an organization. DSS MIS TPS

Sales/Inventory/Order Transactions UPC from scanner Record sale/date/time. Update inventory. Price/description of item EDI Electronic Sales/Inventory/Order Transactions UPC from scanner Record sale/date/time. Update inventory. Price/description of item EDI Electronic Data Interchange (Order) Re inv -sto en ck tor y Shipping

TPS, MIS, DSS, and AI/ES Information AI/ES DSS Less More Decision Routine support Less TPS, MIS, DSS, and AI/ES Information AI/ES DSS Less More Decision Routine support Less More I/O Complex processing/ analysis More Less MIS Data TPS More Less

Batch vs On-line Processing Batch processing • All transactions are accumulated over a period Batch vs On-line Processing Batch processing • All transactions are accumulated over a period of time and processed as a single unit. • Typical periods: daily, weekly, biweekly, monthly, etc. • Examples • Payroll • Billing Transactions

Batch vs On-line Processing On-Line Transaction Processing (OLTP)) • All transactions are processed immediately, Batch vs On-line Processing On-Line Transaction Processing (OLTP)) • All transactions are processed immediately, without delay. • Also called Real-time transaction processing. Airline Reservations Hotel Reservations Car Rentals

On-line Delayed Transaction Processing On-Line Delayed Transaction Processing • All transactions are entered into On-line Delayed Transaction Processing On-Line Delayed Transaction Processing • All transactions are entered into the computer when they occur, but are processed at a later time. Catalog Orders Deposits

Simplified View of a TPS Data Input Internal Transactions • Shipped Orders • Purchase Simplified View of a TPS Data Input Internal Transactions • Shipped Orders • Purchase Orders • Employee Time Cards External Transactions • Customer Orders • Vender Invoices • Customer payments Processing Databases Database Update • Customer orders • Inventory • Purchase Orders • Suppliers Document and Reports Documents • Pick list • Checks to vendors • Receiving notices • Paychecks Operational Reports • Finished goods status • Raw Materials • Inventory status • Packing materials • Spare parts

Source Data Automation • Capturing data at its source in a form that can Source Data Automation • Capturing data at its source in a form that can be directly entered into the computer. It does NOT require keyboard input. Mark Sense Reader POS Register Time Clock Barcode Reader POS Register RFID Magnetic Strip Reader POS Register

Transaction Processing Cycle Corrected Data Original Data Collection ad B ata D Data Correction Transaction Processing Cycle Corrected Data Original Data Collection ad B ata D Data Correction Data Editing Go od Da ta Data Manipulation Data Storage Document Production

Order Processing System Customer Internet Mail EDI Product Phone Invoice Order Entry at u Order Processing System Customer Internet Mail EDI Product Phone Invoice Order Entry at u s Scheduling Orders In ve nt or y St Shipment Execution Shipment Planning Picking List Planned Shipments Routing

Order-Processing System Order Entry System • Captures data needed to process the customer’s order. Order-Processing System Order Entry System • Captures data needed to process the customer’s order. • Sources of data: • Telephone • EDI • E-mail • Internet • Salesperson Sales Configuration System • Ensures that products/services ordered will accomplish customer’s objectives and will work well together. • Customer orders a five-station network. Does the customer have all they need? Continued

Order-Processing System Shipment Planning System • A system that determines which open orders will Order-Processing System Shipment Planning System • A system that determines which open orders will be filled and from which location they will be shipped. Shipment Execution System • A system that coordinates the outflow of all products and goods from the organization, with the objective of delivering quality products on time to customers. • Uses a picking list from Shipment Planning. Continued

Order-Processing System Inventory Control System • For each item picked during Shipment Execution, inventory Order-Processing System Inventory Control System • For each item picked during Shipment Execution, inventory is updated. Invoicing System • Customer invoices are generated and sent based on records received from the Shipment Execution System. Continued

Order-Processing System Customer Interaction System • Monitors and tracks each customer’s interaction with the Order-Processing System Customer Interaction System • Monitors and tracks each customer’s interaction with the company. Request for Proposal Customer Sale Problems, Ideas, Information Customer Interaction Sys. Market Research Sales Marketing Other contacts R&D QC Continued

Order-Processing System Routing System • Determines the best way to get goods from one Order-Processing System Routing System • Determines the best way to get goods from one location to another. Scheduling System • Determines the best time to deliver goods and services.

TPS Summary TPS SUMMARY • A TPS records and processes detailed data necessary to TPS Summary TPS SUMMARY • A TPS records and processes detailed data necessary to update records about the business operations of an organization. • Types of Systems: • Order entry • Inventory control • Payroll • Account payable and receivable • General ledger • Etc, etc

Electronic Commerce Spare some change? ? I use to be a sales clerk at Electronic Commerce Spare some change? ? I use to be a sales clerk at Egghead Software before they became www. egghead. com.

Electronic Commerce IBM’s Shopping Assistant (Intelligent Agent) • Helps you find items you want. Electronic Commerce IBM’s Shopping Assistant (Intelligent Agent) • Helps you find items you want. • Reminds you when items go on sale, or birthdays etc. • Learns your preferences: • Rearranges merchandise at shopping malls so that you see the items you like most, first. • Can correlate buying patterns of whole groups of shoppers: Shirts and ties, shoes and socks.

E-Commerce Visit Sites Price. Watch. com Tiger. Direct. com www. amazon. com www. dell. E-Commerce Visit Sites Price. Watch. com Tiger. Direct. com www. amazon. com www. dell. com www. pennlaurelrealty. com www. ebay. com www. pricewatch. com http: //www. google-watch. org/bigbro. html www. scroogle. org http: //www. google-watch. org/jobad. html http: //www. spychips. com/index. html Drudge. Report. com (News somewhat out of the cave. ) http: //www. wnd. com (News somewhat out of the cave. )

E-Commerce THE FUTURE RFID Card • Intelligent card with embedded computer. • Holds a E-Commerce THE FUTURE RFID Card • Intelligent card with embedded computer. • Holds a great deal of information that identifies the bearer. • Operates as an electronic purse. • Applications: • Telecommunications • Banking • Airlines • Transportation • Medical industries

E-Commerce: Five-Stage Model ion ut Traditional Delivery rib ist c. D i on ctr E-Commerce: Five-Stage Model ion ut Traditional Delivery rib ist c. D i on ctr le Buyer 1. Search for Sources E 5. After-sales service 2. Selection and Negotiation 4. Product and Service Delivery 3. Purchasing

E-Commerce: Five-Stage Model 1. Search for Sources • Search for the desired items and E-Commerce: Five-Stage Model 1. Search for Sources • Search for the desired items and identify the best source. 2. Selection and Negotiation • Selects the desired item/s and gets a price. 3. Purchasing • Fills in an electronic purchase form and arranges payment by corporate account, credit card, check, or Cyber. Cash. 4. Product and Service Delivery • Product is delivered electronically or by conventional means. 5. After-sales service • Capture demographic data about customer and data about after-sales interaction with customer.

Enterprise Resource Planning (ERP) FAST, REALTIME ACCESS OF INFORMATION ACROSS ALL FUNCTIONAL AREAS OF Enterprise Resource Planning (ERP) FAST, REALTIME ACCESS OF INFORMATION ACROSS ALL FUNCTIONAL AREAS OF A COMPANY

Enterprise Resource Planning (ERP) FAST, REALTIME ACCESS OF INFORMATION ACROSS ALL FUNCTIONAL AREAS OF Enterprise Resource Planning (ERP) FAST, REALTIME ACCESS OF INFORMATION ACROSS ALL FUNCTIONAL AREAS OF A COMPANY R&D Information Systems Accounting Distribution HR Purchasing Finance Database Marketing Sales Manufacturing

Enterprise Resource Planning (ERP) Enterprise Resource Planning Characteristics: • Major Goal: Fast, real-time monitoring Enterprise Resource Planning (ERP) Enterprise Resource Planning Characteristics: • Major Goal: Fast, real-time monitoring of business functions. • ERP permits real-time analysis of key issues: • Quality • Availability • Customer satisfaction • Performance • Profitability • Automatically sends exception reports to affected functional areas. • Only purchase application modules you need.

Enterprise Resource Planning (ERP) Advantages of ERP • Enterprise-wide access to real-time information for Enterprise Resource Planning (ERP) Advantages of ERP • Enterprise-wide access to real-time information for decision • • • making. Eliminates costly, inflexible legacy systems. ERP venders use very good work process procedures in their application modules. Uses a highly integrated database and uses essentially one set of data to support all business functions. Only need to purchase the application modules you need. Upgrade technology infrastructure: • Eliminates the hodgepodge of multiple hardware platforms, operating systems, and databases it is using from multiple vendors.

Enterprise Resource Planning (ERP) Disadvantages of ERP • High cost • Consultants often get Enterprise Resource Planning (ERP) Disadvantages of ERP • High cost • Consultants often get $2, 000 per day. • Kodak $500 million • Chevron $160 million • CSUS $700 million-plus (People. Soft ERP by Oracle) • Typically takes one or more years to implement. • Difficult to implement because companies often need to make radical changes to conform to he “best practice” model. High Cost Time Radical Change

Enterprise Resource Planning (ERP) SAP R/3 • SAP is the most widely used ERP Enterprise Resource Planning (ERP) SAP R/3 • SAP is the most widely used ERP system in the world. • SAP - Systems Analysis and Program Development • Developed from the perspective of the corporation as a whole, rather than any business department. • Top-down development. • Runs on a wide variety of hardware servers from small Windows NT to massively parallel systems. • Only purchase the application modules you need. • Support 1, 000’s of users on a single database server with satisfactory response times. • Uses a three-tier client/server architecture.

Enterprise Resource Planning (ERP) SAP R/3 Three-Tier Client/Server Architecture • SAP - Systems Analysis Enterprise Resource Planning (ERP) SAP R/3 Three-Tier Client/Server Architecture • SAP - Systems Analysis and Program Development • R/3 - Third Revision of a Relational system. R/3 version is client/server. Database • The company is based in Walldorf, Server Germany. • Many consider it “THE” software for the 21 century. • 20, 000 employees worldwide. Application • Data is kept only once in the Servers system; thus, very little data redundancy. Client Computers

Topic: TPS 1. This system helps eliminate costly, inflexible legacy systems and uses a Topic: TPS 1. This system helps eliminate costly, inflexible legacy systems and uses a “best -practices model”. a. ABC b. ERP (Enterprise Resource Planning) c. SAP d. DBMS e. b and c

2. A system that monitors and tracks each customer’s interaction with a company is 2. A system that monitors and tracks each customer’s interaction with a company is called. a. Customer satisfaction system. b. Customer interaction system. c. Customer tracking system. d. Customer goodwill system. e. None of the above.

3. When computers communicate from different companies so that the output from one system 3. When computers communicate from different companies so that the output from one system is processed by another without human intervention, the system is called: a. Coupling b. Electronic Data Interchange c. EDI d. b and c

4. Which system below would be more likely to use batch processing? a. payroll 4. Which system below would be more likely to use batch processing? a. payroll b. airline reservations c. hotel reservations d. auto rental e. college course registration

5. In a three-tier client/server ERP architecture, where would the programs for accounting, sales, 5. In a three-tier client/server ERP architecture, where would the programs for accounting, sales, R&D, purchasing, etc. be located? a. database server b. client c. application servers d. function servers e. business functions servers

6. Any information system must involve the organization’s strategic plan? a. True b. False 6. Any information system must involve the organization’s strategic plan? a. True b. False

7. In this form of processing, transactions are accumulated over a period of time 7. In this form of processing, transactions are accumulated over a period of time and processed as a single unit. a. Batch processing b. On-line transaction processing c. Real-time processing d. On-line delayed processing e. a and d

8. In this form of processing, transactions are entered into the computer and stored 8. In this form of processing, transactions are entered into the computer and stored on a disk or tape and processed at a later time. a. On-line transaction processing b. Real-time processing c. On-line delayed processing

9. In this form of processing, transactions are entered into the computer and are 9. In this form of processing, transactions are entered into the computer and are immediately processed. a. On-line transaction processing b. Real-time processing c. On-line delayed processing d. a, b, and c e. a and b

10. In this type of data input into the computer, the data are captured 10. In this type of data input into the computer, the data are captured at the source by a device, such as a barcode reader, and entered directly into the computer. It is called Source Data Automation. a. True b. False

11. After collecting data for processing it must pass through a “filter” called Data 11. After collecting data for processing it must pass through a “filter” called Data Editing or Data Validation. This filter helps eliminate: a. GIFO b. GIGO c. GGIO d. GFIO

12. This system is very important for recording and monitoring the interaction the customer 12. This system is very important for recording and monitoring the interaction the customer has with a company. a. Customer tracking system b. Customer satisfaction system c. Customer interaction system d. Customer goodwill system

13. Examples of a TPS: a. Order entry b. Inventory control c. Payroll d. 13. Examples of a TPS: a. Order entry b. Inventory control c. Payroll d. Sales at a cash register e. All of the above

14. The CSUS university system uses what ERP? a. SAP b. People. Soft c. 14. The CSUS university system uses what ERP? a. SAP b. People. Soft c. None of the above