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Data Storage
•Updating one or more databases with new transactions
•After being updated, this data can be further processed and manipulated by other systems
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Document Production and Reports
•Generating output records, documents, and reports:
–Hard-copy paper reports
–Displays on computer screens
•Results from one TPS can be inputs to another system
Traditional Transaction Processing Applications
•A TPS typically includes the following types of systems:
–Order processing systems
–Accounting systems
–Purchasing systems
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Transaction Processing Systems For Small and Medium-Size Enterprises (SMEs)
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Enterprise Resource Planning
•ERP systems:
–Central to the organization
–Ensure information can be shared across all business functions
–Employ a database of key operational and planning data that can be shared by all
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Enterprise Resource Planning (continued)
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An Overview of Enterprise Resource Planning
•ERP systems:
–Evolved from materials requirement planning systems (MRP)
•Large organizations:
–The first to take on the challenge of implementing ERP
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Advantages of ERP
•Improved access to data for operational decision making
•Elimination of costly, inflexible legacy systems
•Improvement of work processes
•Upgrade of technology infrastructure
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Disadvantages of ERP Systems
•Expense and time in implementation
•Difficulty implementing change
•Difficulty integrating with other systems
•Difficulty in loading data into new ERP system
•Risks in using one vendor
•Risk of implementation failure
ERP for Small and Medium-Size Enterprises (SMEs)
•Many SMEs elect to implement open-source ERP systems
•With open-source software:
–Anyone can see and modify the source code to customize it to meet their needs
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Supply Chain Management (SCM)
•A system that includes:
–Planning, executing, and controlling all activities involved in raw material sourcing and procurement
–Converting raw materials to finished products and warehousing and delivering finished product to customers
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Supply Chain Management (SCM) (continued)
•Process for developing a production plan:
–Sales forecasting
–Sales and operations plan (S&OP)
–Demand management
–Detailed scheduling
–Materials requirement planning (MRP)
–Purchasing
–Production
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Financial and Managerial Accounting
•General ledger:
–Main accounting record of a business
•ERP system:
–Captures transactions entered by workers in all functional areas of the business
–Creates associated general ledger record to track the financial impact of the transaction
Customer Relationship Management
•Key features of a CRM system:
–Contact management
–Sales management
–Customer support
–Marketing automation
–Analysis
–Social networking
–Access by smartphones
–Import contact data
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Hosted Software Model for Enterprise Software
•Many business application software vendors:
–Are pushing the use of the hosted software model for SMEs
•Using the hosted software model:
–Means the small business firm does not need to employ a full-time IT person to maintain key business applications
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Hosted Software Model for Enterprise Software (continued)Fundamentals of Information Systems, Sixth Edition
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International Issues Associated with Enterprise Systems
•Challenges that must be met by an enterprise system of a multinational company include:
–Different languages and cultures
–Disparities in IS infrastructure
–Varying laws and customs rules
–Multiple currencies
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Summary
•Electronic commerce:
–Conducting business activities electronically over computer networks
•Mobile commerce:
–The use of wireless devices such as cell phones and smartphones to facilitate the sale of goods or services—anytime, anywhere
•Electronic payment systems:
–Key component of the e-commerce infrastructure
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Summary (continued)
•Transaction processing system:
–An organized collection of people, procedures, software, databases, and devices
•Enterprise resource planning (ERP) software
–Supports the efficient operation of business processes
•Production and supply chain management process starts with sales forecasting
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Summary (continued)
•A CRM:
–Helps an organization build a database about its customers
•Challenges faced by multinational corporations when planning, building, and operating their TPSs:
–Dealing with different languages and cultures
–Disparities in IS infrastructure
–Varying laws and customs rules
–Multiple currencies