CHAPTER 8

Organizational Information Systems

CHAPTER OUTLINE

Transaction Processing Systems (TPS) Functional Area Information Systems

(FAIS) Enterprise Resource Planning (ERP)

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Type of Information Systems: Inside an Organization

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Transaction Processing Systems

Provides Operational level supportGoal: Increasing efficiency through

automationExamples:

Payroll Sales and ordering Inventory Purchasing, receiving, shipping Accounts payable and receivable

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How Are TPS Related to Other Information Systems

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Architecture of a TPS

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Transaction Processing Mode

Batch Processing Process a batch of transactions at a time Cost/efficient but data will not be up-to-date between

processing cycles

Real Time (Online) Processing Each transaction is processed as soon as it occurs Keeps data up-to-date; better service at a higher cost

than batch processing

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Functional Area Information Systems

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FAIS support lower- and middle-level managerial decision-making

FAIS Reports

Routine reports – produced automatically on a fixed schedule

Ad hoc reports – produced on demand to answer a specific question Drill-down reports Key-indicator reports Comparative reports

Exception reports – highlights situations where data is out of normal range (e.g. Monthly Late Shipments)

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Enterprise Resource Planning (ERP) Systems

Legacy Systems were developed piece-meal within each functional area

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Problems with information silos

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ERP Systems (cont.)

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ERP Implementation

Typically bought from an ERP vendor, e.g., SAP, Oracle, and PeopleSoft (now part of Oracle)

Expensive customizations usually required May require Business Process Management (BPM)

Rethinking and redesign of business processes in order to achieve dramatic improvements in performance (e.g. quality, cycle time, cost)

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Business Process Management

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

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