Professional Documents
Culture Documents
(AQ029-2-1-AIS)
OVERVIEW OF TRANSACTION
PROCESSING & ENTERPRISE
RESOURCE PLANNING (ERP)
SYSTEM
Learning Objectives
• Describe the four major steps in the data processing
cycle.
– Describe the major activities in each cycle.
• Describe documents and procedures used to collected
and process data.
• Describe the ways information is stored in computer-
based information systems.
• Discuss the types of information that an AIS can
provide.
• Discuss how organizations use ERP systems to
process transactions and provide information.
Storage
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The Data Processing Cycle
Determines
Turnaround Document
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Source Data Automation
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Journals
• General
– Infrequent or specialized transactions
• Specialized
– Repetitive transactions
• E.g., sales transactions
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Computer Based Storage
• Entity
– Person, place, or thing (Noun)
– Something an organization wishes to store data about
– Attributes
• Facts about the entity
– Fields
• Where attributes are stored
– Records
• Group of related attributes about an entity
– File
• Group of related Records
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AQ011-3-1-AIS OVERVIEW OF TRANSACTION
File Types
• Transaction
– Contains records of a
business from a
specific period of time
• Master
– Permanent records
– Updated by transaction
with the transaction file
• Database
– Set of interrelated files
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Data Processing
• Soft copy
– Displayed on a screen
• Hard copy
– Printed on paper
– Print out products on 3 –D printer
• Cost
• Time-consuming to implement
• Changes to an organization’s existing
business processes can be disruptive
• Complex
• Resistance to change
• Internal Benefits
– Integration of a single source of data
– Common data definition
– A real-time system
– Increased productivity
– Reduced operating costs
– Improved internal communication
– Foundation for future improvement
• External Benefits
– Improved customer service and order
fulfillment
– Improved communication with suppliers and
customers
– Enhanced competitive position
– Increased sales and profits
• Project Management
– Organizations link implementation teams to both the
technical (IS) and functional departments.
– They tightly control implementation processes
– They appropriately use consultants throughout the
implementation process
– They manage turnover of key implementation employees
– They have basic business reasons for implementation
– They align implementation with organizational strategies
• Technology Excellence
– Organizations rely heavily on the ERP
package as the majority of their application
configuration.
– Organizations implement ERP packages on
time and within budget
– Organizations centralize support groups
within their IT departments
372002.
Source: http://www.intelligententerprise.com/020903/514feat2_1.shtml, viewed September 19, 1-37
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How Do ERP Systems Work?
Managers and
Stakeholders
Financial
Reporting Applications
Human
Sales and
Resource Applications
Delivery
Management
Applications
Applications
Sales Force Central
Manufacturing Back-office
Customers And Customer Database
Service Reps Applications Administrators Suppliers
And Workers
Service Human
Applications Resource Inventory
Management And Supply
Applications Applications
Employees
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Source: Davenport, Thomas, “Putting the Enterprise into the Enterprise System”, Harvard Business Review, July-Aug. 1998.
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An ERP Example: Before ERP
Orders
Parts
Sends report Customer
Demographic
Sales Dept. Files Customers
Accounting
Invoices Sends report
Sends report accounting
Ships parts
Vendor
Warehouse
Order is placed
“We Need parts #XX”
with Vendor
Inventory
Purchasing Files
Files “We ordered the parts”
Purchasing
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An ERP Example: After ERP
Orders
Parts Inventory Data
If no parts,
order is placed
Customers Sales Dept. through DB Accounting
Order is submitted
to Purchasing. Database
Purchasing record Books inventory
order in DB against PO
Order is placed
with Vendor
Warehouse
Vendor Purchasing
Ships parts
And invoices accounting
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Who are the main ERP vendors?
• Baan
• JD Edwards
• Oracle
• PeopleSoft
• SAP
("Systems, Applications & Products in
Data Processing“)
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QUICK REVIEW QUESTIONS
Q&A