Post on 02-Jan-2016
Handling the Present:Transaction Processing
SystemsCopyright © 2001 by Harcourt, Inc.
All rights reserved
Part 2Part 2
2001
I. S. In OrganizationsI. S. In Organizations
• Transaction processing system (TPS)
• Management Information systems (IS)
• Decision support systems (DSS)
2001
Transaction Processing Systems
• Tracks daily, routine transactions– Order Entry– Payroll– Paying Bills
• Repetitious
• Link to customers, suppliers
• Operations personnel, supervisors
2001
Transactions ProcessingSummary of TPS Characteristics
Characteristic Explanation
Large number of transactions TPS must quickly and efficiently handle alarge number of transactions
Correct transactions TPS must be able to validate correctness oftransactions and correct invalid data
Security problems Transactions involve transfer of funds,resulting in potential security problems
Importance to organization If TPS fails, the organization can quicklycease to operate
2001
TPS DATA FEEDS MIS APPLICATIONS
TPS
ORDER PROCESSING
MATERIALS RESOURCE PLANNING
GENERAL LEDGER
ORDER FILEORDER FILE
PRODUCTION MASTER FILEPRODUCTION MASTER FILE
ACCOUNTING FILESACCOUNTING FILES
MISMIS
MIS FILESMIS FILES
SALES DATA
UNIT PRODUCT COST
PRODUCT CHANGE DATA
EXPENSE DATA
MIS REPORTS
MANAGERSMANAGERS
2001
Management Information Systems (MIS)
• Serves Middle Management• More historical • Summary, Control oriented
– Sales Summary Report
• Used in Decision Making• Done periodically (scheduled)• Exception Reports
– Accounts Past Due Report
2001
2001
Office Automation Systems
• Paperless Office
• Data Workers
• Increase Productivity
• Used in Coordination and Communication– Word Processing– E-mail– Scheduling
2001
Decision Support Systems
• For “problem specific” decision
• Non-recurring decision
• “What-if” oriented– Interactive…run many scenarios
• Future oriented
• Source: TPS, MIS, External data
• Use statistical and modeling tools
2001
Information System Cycle
Tran
sact
ions
Tran
sact
ions
Data Storage
Data Storage
DecisionsDecisions
Remember the PastRemember the Past
Preparing forthe Future
Preparing forthe Future
Handlingthe PresentHandling
the Present
People andTechnologyPeople andTechnology
I. S. In OrganizationsI. S. In Organizations
2001
I. S. In OrganizationsI. S. In OrganizationsType Purpose Role
Transaction processing system (TPS)
Handles transactions and stores result in organizational memory
Handle the present
Organizational memory (MIS)
Stores data from TPS
Remember the past
Decision support systems
Aids employees and managers to make decisions
Prepare for the future
2001
Transactions Processing• Batch processing
–Banking
• Online processing–Point of sale (POS) transaction
processing
–UPC bar code
–Data storage & reporting
2001
POS Transaction Processing System
Bar Code Reader Point of Sale TPS
Receipt
Customer Display
Item Nameand Price
Item Nameand Price
Nameand
Price
UPC
Back Office Server
UPC
Update Inventoryand Purchase Databases
2001
Processing and Manipulating Transaction Data
QueryingDatabases
Classificationof Data
UpdatingDatabases
Combine withOther Data
SummaryData
Edited andCorrected
Data
OtherData
OtherData
2001
Business-to-business TPSClassification of Interorganizational
CommunicationsIOS >> EDI Extranet Internet Intranet
Breadth Businesspartnership
Businesspartnership
Global Organizational
Focus Distributionchannelcooperation
Distributionchannelcooperation
Stakeholderrelationships
Employeecommunicationandcooperation
Reach Narrow Broad Broad Broad
Businessprocesses
Revenue andexpenditure
Revenue andexpenditure
Revenue Expenditureandconversion
2001
Business-to-business TPS
• Value chain
• Supply chain
• Demand chain
2001
Value Chain
• Activities which add a margin of value to the firm’s products or services
• Primary– Related to production and distribution of
products and services
• Support– Organization Infrastructure– Employees and Management
2001
Supply-chain• Deals with
– Managing warehouse– Inventory supplies– Distribution channels
• Find “bottlenecks” in operation• Computer Applications address:
– Demand, Supply, Manufacturing, Transportation, Distribution
• Need human coordination/communication
2001
Demand-chain
• Predict what “WILL” happen
• Get “BIG” picture
• Use data to gain “Knowledge” on future trends vs. just what “HAS” happened
• DSS vs. MIS
• Front-end
2001
Partnerships/Alliance
• Two companies sharing Information or Services to gain Strategic advantage– Banks and Airlines
• Name and Address files
– UPS• Shipping and Tracking
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Copyright © 2001 by Harcourt, Inc.
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Remembering the Past withOrganizational Memory
Chapter 5Chapter 5