Chapter 8

Transaction Processing Systems

Agenda

• OLD transaction processing systems

• Innovative IT applications

• SAP R/3

Old Transaction Processing Systems

• Characteristics

• Processing methods

• Types

• Trends

Characteristics

• Large volume, storage, output

• Internal usage

• Scheduled time frame

• Structured I/O

• High I/O speed

• Accuracy, integrity, security, reliability

• Inquiry

Processing Methods

• Batch

• Online

• Online realtime

Types

• Ordering• Ledger• A/P & A/R• Receiving & shipping• Inventory• Fixed Assets• Payroll• Human resources

Trends

• Internet & EDI

• Networking: client/server, web-based

• Outsourcing

Agenda

• Transaction processing systems

• Innovative IT applications

• SAP R/3

Production/Operations & Logistics

• Supply chain management (Extranet, EDI)• In-house logistics and material management

(Intranet)• Planning production/operations (Intranet,

Extranet)– Material requirement planning (MRP)– Manufacturing resource planning (MRP II)– Just-in-Time systems (JIT)

Production/Operations & Logistics

• Project Management (Intranet)– Program Evaluation and Review Technique (PERT)– Critical Path Method (CPM)

• Design & manufacturing (Intranet)– Computer-aided design (CAD)– Computer-aided engineering (CAE)– Computer-aided manufacturing (CAM)– Computer-integrated manufacturing (CIM)

• 20% IT• 80% business process & people (planning & management)

Marketing & Sales

• Customer profile (market database)• Mass customization (Internet)• Customer services (Internet)• Advertisement (Internet)• Telemarketing (phone, TV)• Distribution network (Extranet)• Price, product, service, sales, trend (databases)

Accounting & finance

• Budgeting (Internet, Extranet, Internet, database, DSS, ES)

• Economic forecasting (Extranet, Internet, Internet, DSS, ES, database)

• Investment (Internet, DSS, ES, database)

• Auditing (DSS, ES)

Human Resources

• Recruitment (Internet, database)

• Training (ES, Intranet)

• Performance (ES)

• Benefit (Intranet)

Agenda

• Transaction processing systems

• Innovative IT applications

• SAP R/3

SAP R/3

• Enterprise resource planning– Accounting– Sales– Manufacturing– Human resources

• Multinational• Complex• Expensive

Points to Remember

• Transaction processing systems

• Innovative IT applications

• SAP R/3

Discussion Question

• Does your organization integrate old transaction processing systems with e-commerce?– Yes, any problem?– No, why?

Assignment

• Review chapters 10, 8

• Read chapter 9, 11

• Group assignment

• Research paper