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8/10/2019 Chapter 9(00001)
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Transaction Processing & Enterprise
Resource Planning Systems
Chapter 9
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Principles and Learning Objectives
The concept of transaction processing system. The stage of processing a transaction.
Identify the basic activities and businessobjectives common to all transaction processingsystems.
Describe the inputs, processing, and outputs forthe transaction processing systems associatedwith order, purchasing, and accounting businessprocesses.
Define the term enterprise resource planning
system
and discuss the advantages anddisadvantages associated with the implementationof such a system.
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TPS, MIS/DSS, and Special
Information Systems
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Traditional Transaction Processing
Methods & 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 of accuracy and integrity
Produce timely documents & reports
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Traditional Transaction Processing
Methods & Objectives
Increase labor efficiency
Help provide improved service
Help build and maintain customer loyalty
Achieve competitive advantage
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Batch versus On-Line Transaction Processing
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Integration of a Firms TPSs
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Examples of Transaction Processing
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Transaction Processing Systems
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Steps of Processing a Transaction
1. Data entry
Data from a source document (documentsgenerated at the point where a transaction
occurs) are entered to the system via input
devices.2. Data validation
This step includes checking the accuracy of
Data by comparing actual data withPredetermined standards. It also includes
error correction.
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3. Processing and revalidation
Processing of data may include organizing,
calculating, classification or summing ofdata.
There are two approaches to process a
transaction:- A- Batch processing
According to this approach, transactions are
accumulated over a certain period of timeand processed periodically (daily, weekly,
And monthly).
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In Batch processing, the outputs orinformation is not up to date and that can
Be risky specially in banking sector.
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B- Onl ine processing
According to this approach, data are processed as
they are created. There is no time lag between datacreation and data processing.
Example: ATM systemThe information that are provided or asked at
any time will be up to date information.
After processing, the outputs should be revalidated
and this includes checking the information in term
of its accuracy, face validity and content validity.
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4. Data storage for future use
To increase the value of TPS and to make it
useful for other system, processed data should
be stored. This enables maximization of
Benefits by using the information more than
once. It also can be a management tool to
ensure effective control.
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5. Output reporting to the decision
makers Output reporting can be made using
documents or reports or using forms and
models.Document -Record of one transaction.
Report - A summary of two or more
transaction
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6. Query support
To allow users to access data and informationwhen needed. This can increase the value of
TPS.
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Document Production and Reports
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Control & Management Issues
Business resumption planning
Disaster recovery
Backups
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Transaction Processing Audit
Does the system meet its business
requirements?
Are there procedures and controls? Are the procedures & controls properly used?
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Order Processing Systems
Order entry
Sales configuration
Shipment planning
Shipment execution
Invoicing
Customer relationship management (CRM)
Routing and scheduling
Scheduling systems
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Document Production Reports
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Traditional Transaction
Processing Applications
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Order Processing Systems
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Order Processing Systems
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Order Entry System
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Shipment Planning
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Inventory Status Report
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Invoicing
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Customer Relationship Management
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Purchasing Systems
Inventory control
Purchase order processing
Receiving
Accounts payable
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Purchasing Systems
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Accounts Payable
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Accounts Payable
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Accounting Systems
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Accounts Receivable
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Typical Paycheck Stub
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Payroll Journal
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General Ledger
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General Ledger
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Enterprise Resource
Planning
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Enterprise Resource Planning
(ERP)
ERPis an organizational-wide informationsystem that serves as a common,integrated information infrastructure for
basic business processes. ERP systemsintegrate the business processes in alldepartments and functions across anorganization into a single computer systemthat can serve all departments specificneeds.
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ERP Model
Management
ERP
Branch
B
Branch
C
Branch
A
Training &Research
HumanResource
Dep.
Productive
Dep.
Finance
Dep.
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ERP System
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ERP Software Vendors
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International Issues
Different languages and cultures
Disparities in information systems infrastructure
Varying laws and custom rules
Multiple currencies
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Summary
Transaction Processing Systems- consist of allcomponents of a CBIS, including databases,
telecommunications, and people
Transaction Processing Systems Methods- batch,on-line, and on-line with delayed processing
Enterprise resource planning (ERP) software- a set
of integrated programs that manage a companys vitalbusiness operations for an entire multisite, global
organization