Management information system ralp 7e ch09

• An organization’s TPS must support the routine, day-today 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 • Explain some key control and management issues associated with transaction processing systems • Describe the inputs, processing, and outputs for the transaction processing systems associated with order processing, purchasing, and accounting business processes Principles of Information Systems, Seventh Edition • 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 Principles of Information Systems, Seventh Edition • 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 • Discuss the advantages and disadvantages associated with the implementation of an enterprise resource planning system Principles of Information Systems, Seventh Edition An Overview of Transaction Processing Systems • A transaction processing system (TPS) provides data for other business processes • Management information system/decision support system (MIS/DSS) • Special-purpose information systems Principles of Information Systems, Seventh Edition Figure 9.1: TPS, MIS/DSS, and Special Information Systems in Perspective Principles of Information Systems, Seventh Edition An Overview of Transaction Processing Systems (continued) • TPSs • Process the detailed data necessary to update records about the fundamental business operations • Include order entry, inventory control, payroll, accounts payable, accounts receivable, the general ledger, and more Principles of Information Systems, Seventh Edition Traditional Transaction Processing Methods and Objectives • Batch processing system: method of computerized processing in which business transactions are accumulated over a period of time and prepared for processing as a single unit or batch • Online transaction processing (OLTP): computerized processing in which each transaction is processed immediately, without the delay of accumulating transactions into a batch Principles of Information Systems, Seventh Edition Figure 9.2: Batch Versus Online Transaction Processing Principles of Information Systems, Seventh Edition Traditional Transaction Processing Methods and Objectives (continued) • Online entry with delayed processing: transactions are entered into the computer system when they occur, but they are not processed immediately • Organizations expect their TPSs to: • Process data generated for and about transactions • Maintain a high degree of accuracy and integrity • Produce timely documents and reports Principles of Information Systems, Seventh Edition 10 Accounting Systems • Budget • Accounts receivable • Payroll • Asset management • General ledger Principles of Information Systems, Seventh Edition 34 Figure 9.16: Financial Systems Principles of Information Systems, Seventh Edition 35 Accounting Systems (continued) • Budget transaction processing system: automates many of the tasks required to amass budget data, distribute it to users, and consolidate the prepared budgets • Accounts receivable system: manages the cash flow of the company by keeping track of the money owed the company on charges for goods sold and services performed Principles of Information Systems, Seventh Edition 36 Figure 9.17: An Accounts Receivable Statement Principles of Information Systems, Seventh Edition 37 Accounting Systems (continued) • Payroll system prepares: • Payroll check and stub • Payroll register • W-2 statements • Asset management transaction processing system: controls investments in capital equipment and manages depreciation for maximum tax benefits Principles of Information Systems, Seventh Edition 38 Accounting Systems (continued) • General ledger system: designed to automate financial reporting and data entry Principles of Information Systems, Seventh Edition 39 International Issues • Issues that multinational corporations face in planning, building, and operating their TPSs • Different languages and cultures • Disparities in information system infrastructure • Varying laws and customs rules • Multiple currencies Principles of Information Systems, Seventh Edition 40 Enterprise Resource Planning: An Overview • Enterprise resource planning (ERP) systems are used in large, midsized, and small companies • Real-time monitoring of business functions • Timely analysis of key issues such as quality, availability, customer satisfaction, performance, and profitability Principles of Information Systems, Seventh Edition 41 An Overview of Enterprise Resource Planning (continued) • Steps in running a manufacturing organization using an ERP system • Develop demand forecast • Deduct demand forecast from inventory • Determine what is needed for production • Check inventory for needed raw materials Principles of Information Systems, Seventh Edition 42 An Overview of Enterprise Resource Planning (continued) • Steps in running a manufacturing organization using an ERP system (continued) • Schedule production • Assess need for additional production resources • Financial forecasting Principles of Information Systems, Seventh Edition 43 Advantages and Disadvantages of ERP • Elimination of costly, inflexible legacy systems • Improvement of work processes • Increase in access to data for operational decision making • Upgrade of technology infrastructure • Expense and time in implementation Principles of Information Systems, Seventh Edition 44 Advantages and Disadvantages of ERP (continued) • Difficulty implementing change • Difficulty integrating with other systems • Risks in using one vendor • Risk of implementation failure Principles of Information Systems, Seventh Edition 45 Summary • Transaction processing systems (TPSs): process the detailed data necessary to update records about the fundamental business operations • Batch processing system: transactions are accumulated over a period of time and prepared for processing as a single unit or batch • Online transaction processing (OLTP): transaction is processed immediately, without the delay of accumulating transactions into a batch Principles of Information Systems, Seventh Edition 46 Summary (continued) • The transaction processing cycle: data collection, data editing, data correction, data manipulation, data storage, and document production • Order processing systems include order entry, sales configuration, shipment planning, shipment execution, inventory control, invoicing, customer relationship management, and routing and scheduling Principles of Information Systems, Seventh Edition 47 Summary (continued) • Purchasing transaction processing systems include inventory control, purchase order processing, receiving, and accounts payable • Accounting systems include budget, accounts receivable, payroll, asset management, and general ledger • Enterprise resource planning (ERP) systems permit timely analysis of key issues such as quality, availability, customer satisfaction, performance, and profitability Principles of Information Systems, Seventh Edition 48 ... Processing Systems • A transaction processing system (TPS) provides data for other business processes • Management information system/ decision support system (MIS/DSS) • Special-purpose information systems... Principles of Information Systems, Seventh Edition 27 Figure 9.12: Customer Relationship Management System Principles of Information Systems, Seventh Edition 28 Order Processing Systems (continued)... of Information Systems, Seventh Edition 34 Figure 9.16: Financial Systems Principles of Information Systems, Seventh Edition 35 Accounting Systems (continued) • Budget transaction processing system: