lecture 2c tps processing 1

8/9/2019 Lecture 2C TPS Processing 1

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Integration of a Firms TPSs


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Order Processing Systems


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Order Processing Systems


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Order Entry System


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Shipment Planning


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Inventory Status Report


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Invoicing


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Purchasing Systems

Inventory control

Purchase order processing

Receiving

Accounts payable


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Purchasing Systems


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Accounts Payable


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Accounting Systems


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Accounts Receivable


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Accounts Receivable Aging Report


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Typical Paycheck Stub


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Payroll Journal


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General Ledger


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General Ledger


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Enterprise ResourcePlanning (ERP)


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ERP Enterprise resource planning (ERP) makes

timely information easily available for analysisand decision-making in companies of all sizes.

ERP systems monitor business functions inreal-time to provide timely information inmanufacturing, finance, distribution, sales orhuman resources. A strength ofERP systems

is that they integrate data across allfunctions.

For example, a manufacturing supervisorwould be notified when raw materialinventory falls below a set floor.


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ERP Software Vendors


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Enterprise Resource Planning

Real-time monitoring of business functions

Supports human resources, sales, and

distribution

Accommodates the different ways eachcompany runs business


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Advantages of ERP

Eliminates costly, inflexible legacy systems

Improved technology infrastructure

Improved work processes

Increased data access for decision making

Current business conditions make enterprise-wide accessibility of information a key to success. ERP software offers that possibility.

Deploying an ERP system allows a firm to replace numerous separate, sometimes isolated, inefficient legacy applications with a singleset of integrated products. This improves the efficiency of systems and decreases the cost of maintaining old systems. This improves

an organizations ability to adapt to changing conditions. Implementing an ERP system also gives an enterprise the chance to upgrade

and standardize hardware, software and databases, reducing support and operations costs.

ERP systems are designed around the most effective and customer-oriented business pract ices found. Thus, deploying an ERP system

will help an organization follow the industrys best practices. Although the adoption of improved work processes can be beneficial, as

noted on the next slide, this can also be a disadvantage. Often established processes must be re-engineered, possibly causing

dissatisfaction or turnover among experienced employees.

Since ERP systems maintain an integrated database, decisions can be made based on enterprise-wide data. This is far more efficient

than trying to coordinate decisions across units.


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Disadvantages of ERP

Expense & time

Radical change

Integrating with other systems

One vendor risks

However, ERP systems are time-consuming, expensive, and difficult to implement.

Some companies have spent millions of dollars and many years implementing ERP systems

not always with successful outcomes.

Many companies have also had problems making ERP systems work with existing systems, adding to the expense and difficulty of deploying ER

After investing so many resources in implementing ERP, switching costs are very high,

so an ERP vendor essentially holds a business that uses its system hostage.

Even with these problems, however, many organizations are successfully using ERP systems.


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Example ofERP

SAP

Refer text book page 399


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ERP System- SAP Three Tier Client ServerArchitecture


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Summary

Transaction Processing Systems - consist of allcomponents of a CBIS, including databases,telecommunications, and people

Transaction Processing Systems Methods - batch,on-line, and on-line with delayed processing

Enterprise resource planning (ERP) software - aset of integrated programs that manage a companysvital business operations for an entire multisite, globalorganization

lecture 2c tps processing 1

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