Transaction Processing Enterprise Resource Planning Systems Chapter

Transaction Processing & Enterprise Resource Planning Systems Chapter 9 MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 1

Principles and Learning Objectives • An organization’s TPS must support the routine, dayto-day activities that occur in the normal course of business and help a company add value to its products and services. – Identify the basic activities and business objectives common to all transaction processing systems. – Describe the inputs, processing, and outputs for the transaction processing systems associated with order, purchasing, and accounting business processes. MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 2

Principles and Learning Objectives • TPSs help multinational corporations form business links with their business partners, customers, and subsidiaries. – Identify the challenges that multinational corporations must face in planning, building, and operating their TPSs. MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 3

Principles and Learning Objectives • Implementation of an enterprise resource planning system enables a company to achieve numerous business benefits through the creation of a highly integrated set of systems. – Define the term enterprise resource planning system and discuss the advantages and disadvantages associated with the implementation of such a system. MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 4

An Overview of Transaction Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 5

TPS, MIS/DSS, and Special Information Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 6

Traditional Transaction Processing Methods & Objectives • • Batch processing systems On-line transaction processing (OLTP) On-line entry with delayed processing Process data generated by and about transactions Process data generated for and about transactions Maintain a high degree of accuracy and integrity Produce timely documents & reports MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 7

Traditional Transaction Processing Methods & Objectives • • Increase labor efficiency Help provide improved service Help build and maintain customer loyalty Achieve competitive advantage MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 8

Batch versus On-Line Transaction Processing MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 9

Integration of a Firm’s TPSs MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 10

Examples of Transaction Processing MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 11

Transaction Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 12

Transaction Processing Activities • Data collection – Should be collected at source – Should be recorded accurately, in a timely fashion • Data editing • Data correction MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 13

Document Production and Reports MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 14

Control & Management Issues • Business resumption planning • Disaster recovery – Backups MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 15

Transaction Processing Audit • Does the system meet its business requirements? • Are there procedures and controls? • Are the procedures & controls properly used? MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 16

Order Processing Systems • • Order entry Sales configuration Shipment planning Shipment execution Invoicing Customer relationship management (CRM) Routing and scheduling Scheduling systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 17

Document Production Reports MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 18

Traditional Transaction Processing Applications MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 19

Order Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 20

Order Processing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 21

Order Entry System MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 22

Shipment Planning MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 23

Inventory Status Report MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 24

Invoicing MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 25

Customer Relationship Management MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 26

The 15 Top-Rated CRM Software Packages MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 27

Purchasing Systems • • Inventory control Purchase order processing Receiving Accounts payable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 28

Purchasing Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 29

Accounts Payable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 30

Accounts Payable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 31

Accounting Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 32

Accounts Receivable MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 33

Accounts Receivable Aging Report MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 34

Typical Paycheck Stub MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 35

Payroll Journal MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 36

General Ledger MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 37

General Ledger MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 38

ERP Software Vendors MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 39

International Issues • • Different languages and cultures Disparities in information systems infrastructure Varying laws and custom rules Multiple currencies MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 40

Enterprise Resource Planning MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 41

Enterprise Resource Planning • Real-time monitoring of business functions • Supports human resources, sales, and distribution • Accommodates the different ways each company runs business MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 42

Advantages of ERP • • Eliminates costly, inflexible legacy systems Improved technology infrastructure Improved work processes Increased data access for decision making MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 43

Disadvantages of ERP • • Expense & time Radical change Integrating with other systems One vendor risks MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 44

ERP System MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 45

Business Application Programming Interface (BAPI) MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 46

Summary • Transaction Processing Systems - consist of all components of a CBIS, including databases, telecommunications, and people • Transaction Processing Systems Methods - batch, on -line, and on-line with delayed processing • Enterprise resource planning (ERP) software - a set of integrated programs that manage a company’s vital business operations for an entire multisite, global organization MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 47