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MIS 175 Spring 2002 Chapter 9MIS 221,1,Transaction Processing Systems,Manual or automatic all businesses systematically process transactions Function: process routine, day-to-day business activities Computerized TPS: Batch Online (real-time, OLTP) The foundation of business systems,MIS 175 Spring 2002 Chapter 9MIS 221,2,Batch TPS,Originally, the only available option Transactions accumulated over period of time Time period day, week, month Transaction records accumulated in files When batches are processed, what happens? Update databases Generate reports Generate transactions for other systems,MIS 175 Spring 2002 Chapter 9MIS 221,3,Batch Processing Pros and Cons,Pros Relatively easy to program, install and maintain Batches can be processed during low-activity periods Cons Information is delayed,MIS 175 Spring 2002 Chapter 9MIS 221,4,Online TPS (OLTP),Transactions are processed in real time Required for any “modern” application where time is critical Well supported by client/server computing model,MIS 175 Spring 2002 Chapter 9MIS 221,5,Hybrid TPS,OLTP applications can feed transactions to batch systems Examine: GL only updated once per day Real time order capture with delayed processing,MIS 175 Spring 2002 Chapter 9MIS 221,6,TPS Requirements,Capture, process and store transactions Produce reports and information about transactions Produce transactions for other TPS Be accurate and timely Be efficient require less labor Increase customer service Increase competitive advantage,MIS 175 Spring 2002 Chapter 9MIS 221,7,TPS Activity Model,Data capture From online entry or “external” system Data validation Should be done as close to source as possible Processing Data manipulation Database updating Generation of transactions for other systems Archive Transaction Create documents and reports,MIS 175 Spring 2002 Chapter 9MIS 221,8,Management Issues,Uptime How long can the system be “down” before significant costs are incurred? Processing Delays / Response Times How quickly must a transaction be processed? What is the worst online response time that is acceptable,MIS 175 Spring 2002 Chapter 9MIS 221,9,Management Issues (2),Disaster Recovery What plans are in place to recover lost business data? What plans are in place to resume business processing in case of disaster? Audit Can you verify the integrity of the system? How will you know if transactions are not processed or are processed incorrectly?,MIS 175 Spring 2002 Chapter 9MIS 221,10,TPS By Function,Order Processing Procurement & Inventory Control Accounting,MIS 175 Spring 2002 Chapter 9MIS 221,11,Order Processing TPS,Order capture Variety of means Configuration Shipment planning and inventory allocation Prioritize orders, select shipment locations, allocate inventory to orders Shipping and warehousing Picking, packing, invoicing, reporting,MIS 175 Spring 2002 Chapter 9MIS 221,12,Procurement,Inventory Control Raw materials, WIP, FGI, etc Purchase Order Processing Generating, transmitting, maintaining purchase orders Receiving Accounts Payable Boundary between procurement and accounting,MIS 175 Spring 2002 Chapter 9MIS 221,13,Accounting,Accounts Payable Accounts Receivable Budget Payroll General Ledger Asset Management,MIS 175 Spring 2002 Chapter 9MIS 221,14,Disadvantages of Functionally Organized TPS,Processing inefficiency Data redundancy Causes integrity problems Inefficient Temporal integrity problems Caused by different times at which processing occurs Lack of information coherence,MIS 175 Spring 2002 Chapter 9MIS 221,15,Enterprise Resource Planning Systems,Key word is Enterprise: solution designed for entire enterprise All processes organized around one enterprise-wide data model,MIS 175 Spring 2002 Chapter 9MIS 221,16,Advantages of ERP,Elimination of costly legacy systems Old systems are expensive to maintain and reduce business agility Improvement of processes ERP may have implemented best-in-class processes Improve data access and data integrity Provide complete, consistent view of enterprise data,MIS 175 Spring 2002 Chapter 9MIS 221,17,Disadvantages of ERP,Implementation cost Software and hardware Expertise Opportunity costs Time to implementation Lengthy and difficult process MOC (management of change) challenges System integration difficulties Vendor dependence,MIS 175 Spring 2002 Chapter 9MIS 221,18,Current ERP Vendors,SAP Baan PeopleSoft Oracle J. D. Edwards Manugistics,MIS 175 Spring 2002 Chapter 9MIS 221,19,R/3 Architecture,Functionally rich More functional options than a business will ever need Logical Built around information model 10,000 tables