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C H A P T E RS
Transaction Transaction Processing, Electronic Processing, Electronic
Commerce, and Commerce, and Enterprise Resource Enterprise Resource
Planning SystemsPlanning Systems
Transaction ProcessingTransaction Processing
Bel Air McDonalds
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
Sales/Inventory/Order Transactions
UPC from scanner
Price/description of item
Record sale/date/time.Update inventory.
Shipping
Re-stockinventory
EDI Electronic Data Interchange (Order)
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
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, without delay.• Also called Real-time transaction processing.
AirlineReservations
HotelReservations
CarRentals
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
Documentand
Reports
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
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
Transaction Processing Cycle
Data Collection
Document Production
Data Storage
Data Correction
Data Editing
Data Manipulation
Bad DataGood Data
Original DataCorrected Data
Customer
Order EntryM
ail
ED
I
Ph
one
Inte
rnet
Routing
Scheduling
Shipment Planning
PlannedShipments
Ord
ers
ShipmentExecution
Picking List
Product
Invoice
Inve
ntory
Sta
tus
Order Processing System
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 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 is updated.
Invoicing System
• Customer invoices are generated and sent based on records received from the Shipment Execution System.
Continued
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
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 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 CommerceElectronic Commerce
Spare some change??I use to be a sales clerkat Egghead Softwarebefore they became www.egghead.com.
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 SitesPriceWatch.comTigerDirect.comwww.amazon.comwww.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 DrudgeReport.com (News somewhat out of the cave.)
http://www.wnd.com (News somewhat out of the cave.)
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
E-Commerce: Five-Stage Model
1. Search for Sources
2. Selectionand Negotiation
3. Purchasing
5. After-salesservice
4. Product andService Delivery
Electro
nic Dist
ributio
nBuyer
Tra
dit
ion
al D
eliv
ery
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.
EEnterprise nterprise RResource esource PPlanninglanning
((ERPERP))
FAST, REALTIME ACCESS OF INFORMATIONACROSS ALL FUNCTIONAL AREAS
OF A COMPANY
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
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)
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 $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
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
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.
Topic: TPS
1. This system helps eliminate costly, inflexible legacy systems and uses a “best-practices model”.a. ABCb. ERP (Enterprise Resource Planning)c. SAPd. DBMSe. b and c
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 is processed by another without human intervention, the system is called:a. Couplingb. Electronic Data Interchangec. EDId. b and c
4. Which system below would be morelikely to use batch processing?a. payrollb. airline reservationsc. hotel reservationsd. auto rentale. college course registration
5. In a three-tier client/server ERP architecture, where would the programs for accounting, sales, R&D, purchasing, etc. be located?
a. database serverb. clientc. application serversd. function serverse. business functions servers
6. Any information system must involve the organization’s strategicplan?a. Trueb. False
7. In this form of processing, transactions are accumulated over a period of time and processed as a single unit.
a. Batch processingb. On-line transaction processingc. Real-time processingd. On-line delayed processinge. a and d
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 processingb. Real-time processingc. On-line delayed processing
9. In this form of processing, transactions are entered into the computer and are immediately processed.
a. On-line transaction processingb. Real-time processingc. On-line delayed processingd. a, b, and ce. a and b
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. Trueb. False
11. After collecting data for processing it must pass through a “filter” called Data Editing or Data Validation. This filter helps eliminate:a. GIFOb. GIGOc. GGIOd. GFIO
12. This system is very important for recording and monitoring the interaction the customer has with a company.
a. Customer tracking systemb. Customer satisfaction systemc. Customer interaction systemd. Customer goodwill system
13. Examples of a TPS:
a. Order entryb. Inventory controlc. Payrolld. Sales at a cash registere. All of the above
14. The CSUS university system uses what ERP?
a. SAPb. PeopleSoftc. None of the above
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