TPS ERP E-Business

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1 8-9 8-9 C H A P T E RS Transaction Transaction Processing, Processing, Electronic Electronic Commerce, and Commerce, and Enterprise Enterprise Resource Resource Planning Planning

Transcript of TPS ERP E-Business

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8-98-9

C H A P T E RS

Transaction Transaction Processing, Electronic Processing, Electronic

Commerce, and Commerce, and Enterprise Resource Enterprise Resource

Planning SystemsPlanning Systems

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Transaction ProcessingTransaction Processing

Bel Air McDonalds

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TPS, MIS, DSS, and AI/ES

Transaction Processing Systems (TPS)• Performs routine operations and serve as a foundation for other systems.

Transactions• The basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, and payroll checks in an organization.

TPS

MIS

DSS

AI/ES

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Sales/Inventory/Order TransactionsUPC from scanner

Price/description of item

Record sale/date/time.Update inventory.

Shipping

Re-stockinventory

EDI (Order)

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TPS, MIS, DSS, and AI/ES

TPS

MIS

DSS

AI/ESInformation

Data

Less

Routine

More

More

Decisionsupport

Less

Less

I/O

More

More

Complexprocessing/

analysis

Less

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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

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

AirlineReservations

HotelReservations

CarRentals

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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

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Simplified View of a TPSDocument

andReports

Data Input Processing

Databases

Database Update•Customer orders•Inventory•Purchase Orders•Suppliers

Internal Transactions•Shipped Orders•Purchase Orders•Employee Time Cards

External Transactions•Customer Orders•Vender Invoices•Customer payments

Documents•Pick list•Checks to vendors•Receiving notices•Paychecks

Operational Reports•Finished goods status•Raw Materials•Inventory status•Packing materials•Spare parts

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Source Data Automation

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.

Time ClockMark Sense Reader

POS Register POS Register

Magnetic Strip Reader

POS Register

BarcodeReader

RFID

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Transaction Processing Cycle

Data Collection

Document Production

Data Storage

Data Correction

Data Editing

Data Manipulation

Bad Data Good Data

Original DataCorrected Data

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Customer

Order EntryM

ail

ED

IPh

one

Inte

rnet

Routing

Scheduling

Shipment Planning

PlannedShipments

Ord

ers

ShipmentExecution

Picking List

Product

Invoice

Inve

ntory S

tatus

Order Processing System

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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

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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

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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

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Order-Processing System

Continued

Customer Interaction System • Monitors and tracks each customer’s interaction with the company.

Customer

Othercontacts

Problems,Ideas,

Information

MarketResearch

SalesMarketing

QC

R & DCustomer

Interaction Sys.

SaleRequest for

Proposal

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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.

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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

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Electronic CommerceElectronic CommerceSpare some change??

I use to be a sales clerkat Egghead Softwarebefore they became www.egghead.com.

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Electronic CommerceIBM’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.

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E-CommerceVisit Sites www.amazon.com www.dealtime.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 http://www.wnd.com (News somewhat out of the cave.)

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E-CommerceTHE 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

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E-Commerce: Five-Stage Model

1. Search for Sources

2. Selectionand Negotiation

3. Purchasing

5. After-salesservice

4. Product andService Delivery

Electro

nic Distr

ibution

Buyer

Tra

ditio

nal D

eliv

ery

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E-Commerce: Five-Stage Model 1. Search for Sources

2. Selection and Negotiation

3. Purchasing

5. After-sales service

4. Product and Service Delivery

• Search for the desired items and identify the best source.

• Selects the desired item/s and gets a price.

• Fills in an electronic purchase form and arranges payment by corporate account, credit card, check, or CyberCash.

• Product is delivered electronically or by conventional means.

• Capture demographic data about customer and data about after-sales interaction with customer.

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EEnterprise nterprise RResource esource PPlanninglanning((ERPERP))

FAST, REALTIME ACCESS OF INFORMATIONACROSS ALL FUNCTIONAL AREAS

OF A COMPANY

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Enterprise Resource Planning (ERP)

InformationSystems

Marketing

ManufacturingHR

Finance

Sales

Purchasing

DatabaseDistribution

R & D

Accounting

FAST, REALTIME ACCESS OF INFORMATIONACROSS ALL FUNCTIONAL AREAS

OF A COMPANY

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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)

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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.

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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 (PeopleSoft 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

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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.

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Enterprise Resource Planning (ERP)SAP R/3 Three-Tier Client/Server Architecture

DatabaseServer

ApplicationServers

ClientComputers

• SAP - Systems Analysis and Program Development• R/3 - Third Revision of a Relational system. R/3 version is client/server.• The company is based in Walldorf, Germany.• Many consider it “THE” software for the 21 century.• 20,000 employees worldwide.• Data is kept only once in the system; thus, very little data redundancy.

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