CHAPTER 8 Organizational Information Systems CHAPTER OUTLINE Transaction

CHAPTER 8 Organizational Information Systems

CHAPTER OUTLINE § Transaction Processing Systems (TPS) § Functional Area Information Systems (FAIS) § Enterprise Resource Planning (ERP) 2

Type of Information Systems: Inside an Organization 3

Transaction Processing Systems n Provides Operational level support n Goal: Increasing efficiency through automation n Examples: n n n Payroll Sales and ordering Inventory Purchasing, receiving, shipping Accounts payable and receivable 4

How Are TPS Related to Other Information Systems 5

Architecture of a TPS 6

Transaction Processing Mode § Batch Processing n n Process a batch of transactions at a time Cost/efficient but data will not be up-to-date between processing cycles § Real Time (Online) Processing n n Each transaction is processed as soon as it occurs Keeps data up-to-date; better service at a higher cost than batch processing 7

Functional Area Information Systems FAIS support lowerand middle-level managerial decision -making 8

FAIS Reports n Routine reports – produced automatically on a fixed schedule n Ad hoc reports – produced on demand to answer a specific question n Drill-down reports Key-indicator reports Comparative reports n Exception reports – highlights situations where data is out of normal range (e. g. Monthly Late Shipments) 9

Enterprise Resource Planning (ERP) Systems Legacy Systems were developed piecemeal within each functional area 10

Problems with information silos 11

ERP Systems (cont. ) 12

ERP Implementation n Typically bought from an ERP vendor, e. g. , SAP, Oracle, and People. Soft (now part of Oracle) n Expensive customizations usually required n May require Business Process Management (BPM) n Rethinking and redesign of business processes in order to achieve dramatic improvements in performance (e. g. quality, cycle time, cost) 13

Business Process Management A business process is a set of related steps or procedures designed to produce a specific outcome. 14