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