Professional Documents
Culture Documents
Transaction
8-9 Processing, Electronic
Commerce, and
Enterprise Resource
Planning Systems
Transaction Processing
Transactions DSS
• The basic business operations such as
customer orders, purchase orders,
receipts, time cards, invoices, and MIS
payroll checks in an organization.
TPS
Sales/Inventory/Order Transactions
UPC from scanner
Record sale/date/time.
Update inventory.
Price/description of item
Shipping
TPS, MIS, DSS, and AI/ES
TPS
Data More Less More 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.
Documents
Internal Transactions •Pick list
•Shipped Orders •Checks to vendors
•Purchase Orders Databases •Receiving notices
•Employee Time Cards •Paychecks
Data Editing
Data Storage
Document
Production
Order Processing System
Customer
Invoice
Internet
Product
Mail
EDI
Order Entry Scheduling
Shipment
Execution
Orders
Invoicing System
• Customer invoices are generated and sent based on records
received from the Shipment Execution System.
Continued
Order-Processing System
Customer Interaction System
• Monitors and tracks Customer
each customer’s
interaction with the
company.
Problems,
Request for Other
Sale Ideas,
Proposal contacts
Information
Customer
Market Interaction Sys. R&D
Research
Sales QC Continued
Marketing
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 Commerce
Spare some change??
I use to be a sales clerk
at Egghead Software
before they became
www.egghead.com.
Electronic Commerce
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
Buyer
1. Search for
Sources
5. After-sales
service
2. Selection
and Negotiation
4. Product and
Service Delivery
3. Purchasing
E-Commerce: Five-Stage Model
1. Search for Sources
• Search for the desired items and identify the best source.
2. Selection and Negotiation
• Selects the desired item/s and gets a price.
3. Purchasing
• Fills in an electronic purchase form and arranges payment by
corporate account, credit card, check, or CyberCash.
4. Product and Service Delivery
• Product is delivered electronically or by conventional means.
5. After-sales service
• Capture demographic data about customer and data about
after-sales interaction with customer.
Enterprise Resource Planning
(ERP)
FAST, REALTIME ACCESS OF INFORMATION
ACROSS ALL FUNCTIONAL AREAS
OF A COMPANY
Enterprise Resource Planning (ERP)
FAST, REALTIME ACCESS OF INFORMATION
ACROSS ALL FUNCTIONAL AREAS
OF A COMPANY
R&D Information
Systems Purchasing
Accounting Finance
Distribution Marketing
Database
HR Sales
Manufacturing
Enterprise Resource Planning (ERP)
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)
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
• SAP - Systems Analysis and Program Development
• R/3 - Third Revision of a Relational
system. R/3 version is client/server. Database
• The company is based in Walldorf, Server
Germany.
• Many consider it “THE” software
for the 21 century.
• 20,000 employees worldwide. Application
• Data is kept only once in the Servers
system; thus, very little data
redundancy.
Client
Computers
Topic: TPS