Transaction Processing

1
Transaction Processing Enterprise Resource
Planning Systems

• Chapter 9

2
Chapter 9 Outline

• An overview of Transaction Processing Systems
• Traditional Transaction Processing Applications
• Enterprise Resource Planning

3
An Overview of Transaction Processing Systems
4
TPS, MIS/DSS, and Special Information Systems
5
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

6
Traditional Transaction Processing Methods
Objectives

• Increase labor efficiency
• Help provide improved service
• Help build and maintain customer loyalty
• Achieve competitive advantage

7
Batch versus On-Line Transaction Processing
8
Integration of a Firms TPSs
9
Examples of Transaction Processing
10
Transaction Processing Systems
11
Transaction Processing Activities

• Data collection
• Should be collected at source
• Should be recorded accurately, in a timely
  fashion
• Data editing
• Data correction

12
Document Production and Reports
13
Control Management Issues

• Business resumption planning
• Disaster recovery
• Backups

14
Transaction Processing Audit

• Does the system meet its business requirements?
• Are there procedures and controls?
• Are the procedures controls properly used?

15
Order Processing Systems

• Order entry
• Sales configuration
• Shipment planning
• Shipment execution
• Invoicing
• Customer relationship management (CRM)
• Routing and scheduling
• Scheduling systems

16
Document Production Reports
17
Traditional Transaction Processing
Applications
18
Order Processing Systems
19
Order Processing Systems
20
Order Entry System
21
Shipment Planning
22
Inventory Status Report
23
Invoicing
24
Customer Relationship Management
25
The 15 Top-Rated CRM Software Packages
26
Purchasing Systems

• Inventory control
• Purchase order processing
• Receiving
• Accounts payable

27
Purchasing Systems
28
Accounts Payable
29
Accounts Payable
30
Accounting Systems
31
Accounts Receivable
32
Accounts Receivable Aging Report
33
Typical Paycheck Stub
34
Payroll Journal
35
General Ledger
36
General Ledger
37
ERP Software Vendors
38
International Issues

• Different languages and cultures
• Disparities in information systems infrastructure
• Varying laws and custom rules
• Multiple currencies

39
Enterprise Resource Planning
40
Enterprise Resource Planning

• Real-time monitoring of business functions
• Supports human resources, sales, and distribution
• Accommodates the different ways each company runs
  business

41
Advantages of ERP

• Eliminates costly, inflexible legacy systems
• Improved technology infrastructure
• Improved work processes
• Increased data access for decision making

42
Disadvantages of ERP

• Expense time
• Radical change
• Integrating with other systems
• One vendor risks

43
ERP System
44
Business Application Programming Interface (BAPI)
45
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
  companys vital business operations for an entire
  multisite, global organization

46
Principles and Learning Objectives

• An organizations TPS must support the routine,
  day-to-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.

47
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.

48
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.

49
End of Chapter 9