TPS, MIS, DSS, and AI/ES
(Figure 8.1)
Transaction Processing Systems (TPS)
Perform routine operations & serve as a foundation for other systems
Transactions
Basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, & payroll checks in an organization
Chapter 8 2 IS for Management

Batch vs. On-Line Transaction
Processing
(Figure 8.2)
Batch Processing
A system in which business transactions are accumulated over a period of time & prepared for processing as a single unit or batch
On-Line Transaction
Processing (OLTP)
A system whereby each transaction is processed immediately, without the delay of accumulating transactions into a batch
Chapter 8 3 IS for Management

Integration and Objectives of TPS

Integration of TPS
(Figure 8.3)

Objectives of TPS
–
Process data generated by & about transactions
– Maintain a high degree of accuracy
–
Ensure data & information integrity and accuracy
–
Produce timely documents & reports
– Increase labor efficiency
–
Help provide increased & enhanced service
– Help build & maintain customer loyalty
Chapter 8 4 IS for Management

Simplified Overview of TPS
(Figure 8.4)
Chapter 8 5 IS for Management

DP Activities Common to TPS
(Figure 8.5)

A Transaction Processing Cycle
– Data Collection
–
Data Editing
–
Data Correction
–
Data Manipulation
– Data Storage
– Document Production

Source Data Automation : P rocess of capturing data at its source with minimal manual effort, entered directly into the computer without human intervention
Chapter 8 6 IS for Management

Control and Management Issues

Business Resumption Planning : Process of anticipating & providing for disasters

Disaster Recovery : Implementation of the business resumption plan

TPS Audit : Examination of the TPS in an attempt to answer 3 basic questions
• Does the system meet the business need?
• What procedures & controls have been established?
• Are the procedures & controls being properly used?
Chapter 8 7 IS for Management

Traditional TPS Order Processing
(Figure 8.7)
Order
Processing
Processing an order from entry to delivery, including traditional accounting transactions
Chapter 8 8 IS for Management

Enterprise Resource Planning (ERP)
(Table 8.5)
ERP : Real-time monitoring of business functions across the enterprise
Software VendorName of Software
Avalon Software qad.inc
Oracle
SAP America
Baan
PeopleSoft
J.D. Edwards
Avalon CIM
MRG/PRO
Oracle Manufacturing
SAP R/3
Triton
PeopleSoft
World
Chapter 8 9 IS for Management

Enterprise Resource Planning

Advantages
–
Eliminate costly, inflexible legacy systems
–
Provide improved work processes
– Provide access to data for operational decision making
–
Upgrading technology infrastructure

Disadvantages
– Time consuming, difficult, expensive to implement
–
Make radical changes in how a company operates
– Lack of vendor responsiveness in light of high demand
Chapter 8 10 IS for Management

Example of an ERP System - SAP/R3

Clients in the SAP system

Application servers in the SAP system

Business application programming interfaces
(BAPIs)

Database server in the SAP system

Objects in the SAP system

Repository

Tables
Chapter 8 11 IS for Management

SAP Three-Tier Client/Server
Architecture
(Figure 8.24)

Database servers hold data that are accessed
& updated in real-time

Applications servers are used to execute client requests & to update master files

Client desktop computers: The R/3 system is able to support hundreds or thousands of clients (e.g., Pentium PCs)
Chapter 8 12 IS for Management

Business Application Programming
Interface (BAPI)
(Figure 8.25)
Chapter 8 13 IS for Management

Chapter 8 Case

Case 3: FedEx and SAP team up (pp. 385-86)
Chapter 8 14 IS for Management

Electronic Commerce (E-Commerce)

Business-to-business problems
– Inadequate models
– Integrating with existing systems
–
Improving relationships with suppliers, customers, & distributors

Consumer problems
– Waiting for images to download
– Security of credit information
– Figuring out the ordering process

Currently a small part of all commerce
Chapter 8 15 IS for Management

5 Stage Model of E-Commerce
(Figure 8.22)
Stages consumers experience in the sales life cycle:
1.
Search for & identify supplier(s)
2.
Selection & negotiation
3.
Purchasing
4.
Product & service delivery a) traditional delivery b) electronic distribution
5.
After-sales service
Chapter 8 16 IS for Management

Forecasted Volume of E-Commerce
1997 2000
Consumer E-Commerce $0.5 billion $ 7 billion
Business-to-business E-Commerce $8.0 billion $66 billion
Chapter 8 17 IS for Management

Purchasing Products & Services
Electronically

Establish credit with suppliers

Secure E-Commerce transactions
– Secure credit transactions
• Secure Financial Transaction (SET)
• Secure Sockets Layer (SSL)
• Others
–
CyberCash
• Electronic wallets, purses, etc.
•
Digicash options
Chapter 8 18 IS for Management

Everything you know about e-commerce is
WRONG!
–
CEOs still have control
– Online revenues do matter for justifying infrastructure
–
Profitability is good
– It isn’t just clicks versus mortar
–
Business models may be different
– Indirect channels are crucial partners
–
Going global includes importance of local image
– Speed, speed & more speed
Chapter 8 19 IS for Management

 Search engines
 Portals
 Virtual community
 Topical sites
 Site design
–
Ease of use (linking structure, intuitiveness)
–
Robustness

Push vs. Pull
–
Push : Web sites can push customized information to consumer/business
–
Pull : Consumers/businesses have to search for information/product/service
Chapter 8 20 IS for Management


Security
–
Firewalls
–
Encryption
– Cookies
– Privacy considerations
Chapter 8
• Collecting data
•
Changing data (includes merging data)
•
Notification of potential uses of data
•
Permission to use data for purposes not originally intended
21 IS for Management


E-Markets
–
Consumer auctions
– B2B auctions & brokers
– Travel services
– One-click process patented

E-Payments
–
Cybercash
– Credit cards
Chapter 8 22 IS for Management


Applications
– Bill paying
–
Education
– Elections
–
Entertainment
– Extranets
–
Intranets
–
Productivity tools
– Purchasing
–
Research
Chapter 8 23 IS for Management


Customer service
–
4 out of 5 online purchasers have experienced a failed purchase
–
25% of those frustrated say they will never go back
–
8% rate of abandonment
Chapter 8 24 IS for Management


What are trends ?

What are technological advances ?

Push vs. Pull
–
Push : Advances in technology push applications for the technology to be used
–
Pull : Business/consumer needs pull the technology to be developed to meet the needs
 Permanence of the Web as “ information space
”
(Tim Berners-Lee, 1999)
Chapter 8 25 IS for Management