Transcript Chapter 8
Chapter 8 Transaction Processing, Electronic Commerce, and Enterprise Resource Planning Systems Transactions Transactions… Basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, and payroll checks in an organization Transaction processing systems (TPS) Perform routine operations and serve as a foundation for other systems Batch vs. On-Line Transaction Processing Two types of TPS: Batch processing A system whereby business transactions are accumulated over a period of time and 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 Batch Schematic Data entry of accumulated transactions Input (batched) Output On-line Schematic Terminal Terminal Terminal Output Immediate processing of each transaction Terminal Terminal Terminal Objectives of TPS Process data generated by and about transactions Maintain a high degree of accuracy Ensure data and information integrity and accuracy Produce timely documents and reports Increase labour efficiency Help provide increased and enhanced service Help build and maintain customer loyalty Achieve competitive advantage Simplified Overview of a Transaction Processing System Schematic Data entry & input Processing Internally generated transactions: • shipped orders • purchase orders • employee time cards Externally generated transactions: Documents & reports Documents: • pick list Database • cheques to vendors • receiving notices Database update: • paycheques • customer orders Operational reports: • inventory • finished product inventory status • customer orders • purchase orders • vendor invoices • customers • customer payments • suppliers • raw materials; packing materials; spare parts; inventory status Data Processing Activities Common to TPSs A transaction processing cycle Data collection Data editing Data correction Data manipulation Data storage Document production Schematic Original data Data collection Data edit Data correction Data manipulation Data storage Document production Source Data Automation Source data automation The process of capturing data at its source with minimal manual effort Data are entered directly into the computer Traditional TPS – Order Processing Order processing Processing an order from entry to delivery, including traditional accounting transactions Schematic Invoice Customer Products Customer order in person or via mail, phone, EDI, internet Inventory status Order entry/ sales configuration Orders Finished product inventory Shipment planning Planned shipments Pick list Shipment execution Shipped orders Invoicing Routing Planned shipments & routes Scheduling Data Flow Diagram of an Order Entry System Schematic D6 Inventory D1 Products/prices Product numbers, inventory levels 1. Collect order info D2 Customer payment history Products, price information Orders 2. Verify product numbers & stock on hand Orders Credit status Open orders 3. Authorize credit D3 New orders Rejected, partly filled orders Back orders Customer Customer notification 4. Notify customer Back orders Rejected orders D5 Rejected orders D4 Back orders Order Processing Support Systems - Sales Configuration Sales configuration Ensures that products and services ordered are sufficient to accomplish customer’s objectives and will work well together Order Processing Support Systems Shipment Planning Shipment planning A system that determines which open orders will be filled and from which location they will be shipped E.g., (from Figure 8.9) LOC LINK ITEM NUMBER DESCRIPTION 8 105 10 L1L16028 20 S8276 30 S8279 40 FASENTING TOOL STAPLE ¾ INCH STAPLE 1 INCH SHIPPING CHARGE 3 15 15 ORDERED SHIPPED BO EACH CASE CASE 3 15 12 3 Order Processing Support Systems Shipment Execution Shipment execution A system that coordinates the outflow of all products and goods from the organization, with the objective of delivering quality products on time to customers Order Processing Support Systems Inventory Control Inventory control A system that updates the computerized inventory records to reflect the exact quantity on hand of each stock keeping unit Status reports Summarize all inventory items in stock, or shipped over a specified period of time E.g., see Figure 8.10 Order Processing Support Systems Invoicing Invoicing Generates customer invoices based on records received from the shipment execution TPS E.g., see Figure 8.11 Order Processing Support Systems Customer Interaction System Customer interaction A system that monitors and tracks each customer interaction with the company Customer Request for proposal Sale Problem, idea, request for information Other contacts Customer interaction system Market research Product development Sales Marketing Quality control Order Processing Support Systems - Routing and Scheduling Routing A system that determines the best way to get goods and products from one location to another Scheduling A system that determines the best time to deliver goods and services