CHAPTER 8

Information Systems that Support Organizations

CHAPTER OUTLINE

8.1 Transaction Processing Systems

8.2 Functional Area Information Systems

8.3 Enterprise Resource Planning Systems

LEARNING OBJECTIVES

Describe transaction processing systems. Describe functional area information systems

and the support they provide for each functional area of the organization.

Describe enterprise resource planning systems.

Chapter Opening Case

UPS: Synchronizing the world of commerce

Chapter opening case (continued)

UPS Worldport

8.1 Transaction Processing Systems (TPS)

Batch Processing

Online Transaction Processing (OLTP)

Rudy Giuliani checking out of a Wal-Mart using a bar code scanner that produces data captured by a transaction processing system

Note: the barcode scanner is an example of source data automation

How Transaction Processing Systems Manage Data

8.2 Functional Area Information Systems

Functional Area Information Systems are designed to support a functional area by increasing its internal effectiveness and efficiency in the following areas: Accounting Finance Marketing Operations (POM) Human Resources Management

The World’s Cheapest Car

Examples of Information Systems Supporting the Functional Areas

Functional Area Information Systems Reports

Routine reports Ad hoc (on demand) reports

Drill-down reports Key-indicator reports Comparative reports

Exception reports

Summary Report

A summary report is one type of routine report

Detailed Report

A detailed report is another type of routine report

Drill-Down Report

Drill-down report is a type of ad-hoc report

Key-Indicator Report

Key-indicator report is a type of ad-hoc report

Comparative Report

Comparative report is one type of ad-hoc report.

Exception Report

8.3 Enterprise Resource Planning Systems (ERP)

The major objective of ERP systems: integrate the functional areas of the organization by enabling seamless information flows across them.

Problems with information silos

SAP Modules

ERP Systems (continued)

A business process is a set of related steps or procedures designed to produce a specific outcome.

Manufacturing&

ProductionModuleAccounting

and Financial Module

BusinessIntelligence

Module

Supply Chain

Management Module

E-Business Module

Customer Relationshi

p Managemen

t Module

Human Resources

Module

Core ERP Modules

Extended ERP Modules

Suppliers Customers

ERP Platform & Database

ERP IISYSTEM

The World Bank

Chapter Closing Case