CHAPTER 8
Organizational Information
Systems
CHAPTER OUTLINE
 Transaction Processing Systems (TPS)
 Functional Area Information Systems
(FAIS)
 Enterprise Resource Planning (ERP)
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Type of Information Systems: Inside an
Organization
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Transaction Processing Systems
 Provides Operational level support
 Goal: Increasing efficiency through
automation
 Examples:
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Payroll
Sales and ordering
Inventory
Purchasing, receiving, shipping
Accounts payable and receivable
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How Are TPS Related to Other
Information Systems
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Architecture of a TPS
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Transaction Processing Mode
 Batch Processing

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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
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Each transaction is processed as soon as it occurs
Keeps data up-to-date; better service at a higher cost
than batch processing
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Functional Area Information Systems
FAIS support lowerand middle-level
managerial
decision-making
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FAIS Reports
 Routine reports – produced automatically on a
fixed schedule
 Ad hoc reports – produced on demand to answer
a specific question
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Drill-down reports
Key-indicator reports
Comparative reports
 Exception reports – highlights situations where
data is out of normal range (e.g. Monthly Late
Shipments)
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Enterprise Resource Planning (ERP) Systems
Legacy Systems were developed piece-meal
within each functional area
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Problems with
information silos
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ERP Systems (cont.)
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ERP Implementation
 Typically bought from an ERP vendor, e.g., SAP,
Oracle, and PeopleSoft (now part of Oracle)
 Expensive customizations usually required
 May require Business Process Management (BPM)

Rethinking and redesign of business processes in order to
achieve dramatic improvements in performance (e.g. quality,
cycle time, cost)
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Business Process Management
A business process is a set of related steps or
procedures designed to produce a specific
outcome.
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