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Information Systems ISM 3011 An Overview of Transaction ...

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mhepp@computer.org<strong>Information</strong> <strong>Systems</strong><strong>ISM</strong> <strong>3011</strong>Unit 9A<strong>Transaction</strong> Processing & EnterpriseResource Planning <strong>Systems</strong>Chapter 9Dr. Martin Hepp 1Dr. Martin Hepp 2Principles and Learning Objectives• <strong>An</strong> organization’s TPS must support the routine, dayto-dayactivities that occur in the normal course <strong>of</strong>business and help a company add value to itsproducts and services.– Identify the basic activities and business objectives commonto all transaction processing systems.– Describe the inputs, processing, and outputs for thetransaction processing systems associated with order,purchasing, and accounting business processes.Principles and Learning Objectives• TPSs help multinational corporations formbusiness links with their business partners,customers, and subsidiaries.– Identify the challenges that multinationalcorporations must face in planning, building, andoperating their TPSs.Dr. Martin Hepp 3Dr. Martin Hepp 4Principles and Learning Objectives• Implementation <strong>of</strong> an enterprise resourceplanning system enables a company toachieve numerous business benefits throughthe creation <strong>of</strong> a highly integrated set <strong>of</strong>systems.<strong>An</strong> <strong>Overview</strong> <strong>of</strong> <strong>Transaction</strong>Processing <strong>Systems</strong>– Define the term enterprise resource planningsystem and discuss the advantages anddisadvantages associated with the implementation<strong>of</strong> such a system.Dr. Martin Hepp 5Dr. Martin Hepp 6Some content with kind permission <strong>of</strong>Thomson Course Technology 1


mhepp@computer.org<strong>Transaction</strong> Processing <strong>Systems</strong>Traditional <strong>Transaction</strong> ProcessingMethods & 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 <strong>of</strong> accuracy and integrity• Produce timely documents & reportsDr. Martin Hepp 7Dr. Martin Hepp 8Traditional <strong>Transaction</strong> ProcessingMethods & Objectives• Increase labor efficiency• Help provide improved service• Help build and maintain customerloyalty• Achieve competitive advantageBatch versus On-Line <strong>Transaction</strong>ProcessingDr. Martin Hepp 9Dr. Martin Hepp 10Integration <strong>of</strong> a Firm’s TPSsAdvantages <strong>of</strong> ERP• Eliminates costly, inflexible legacy systems• Improved technology infrastructure• Improved work processes• Increased data access for decision makingDr. Martin Hepp 11Dr. Martin Hepp 12Some content with kind permission <strong>of</strong>Thomson Course Technology 2


mhepp@computer.orgDisadvantages <strong>of</strong> ERP• Expense & time• Radical change• Integrating with other systems• One vendor risksControl & Management Issues• Business resumption planning• Disaster recovery & BackupsDr. Martin Hepp 13Dr. Martin Hepp 14Summary• <strong>Transaction</strong> Processing <strong>Systems</strong> - consist <strong>of</strong> allcomponents <strong>of</strong> a CBIS, including databases,telecommunications, and people• <strong>Transaction</strong> Processing <strong>Systems</strong> Methods - batch, online,and on-line with delayed processing• Enterprise resource planning (ERP) s<strong>of</strong>tware - a set <strong>of</strong>integrated programs that manage a company’s vitalbusiness operations for an entire multisite, globalorganizationThank you!<strong>An</strong>y questions? Please send an e-mail to mhepp@computer.org!http://ruby.fgcu.edu/courses/mhepp/Dr. Martin Hepp 15Dr. Martin Hepp 16Some content with kind permission <strong>of</strong>Thomson Course Technology 3

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