mis 175 spring 2002 chapter 9mis 221 1 transaction processing systems manual or automatic – all...

MIS 175 Spring 2002 Chapter 9MIS 221

1

Transaction Processing Systems

• Manual or automatic – all businesses systematically process transactions

• Function: process routine, day-to-day business activities

• Computerized TPS:– Batch– Online (real-time, OLTP)

• The foundation of business systems


2

Batch TPS

• Originally, the only available option• Transactions accumulated over period of time• Time period – day, week, month• Transaction records accumulated in files• When batches are processed, what happens?

– Update databases– Generate reports– Generate transactions for other systems


3

Batch Processing Pros and Cons

• Pros– Relatively easy to program, install and

maintain– Batches can be processed during low-activity

periods

• Cons– Information is delayed


4

Online TPS (OLTP)

• Transactions are processed in real time

• Required for any “modern” application where time is critical

• Well supported by client/server computing model


5

Hybrid TPS

• OLTP applications can feed transactions to batch systems– Examine: GL only updated once per day

• Real time order capture with delayed processing


6

TPS Requirements

• Capture, process and store transactions• Produce reports and information about

transactions• Produce transactions for other TPS• Be accurate and timely• Be efficient – require less labor• Increase customer service• Increase competitive advantage


7

TPS Activity Model

• Data capture– From online entry or “external” system

• Data validation– Should be done as close to source as possible

• Processing– Data manipulation– Database updating– Generation of transactions for other systems

• Archive Transaction• Create documents and reports


8

Management Issues

• Uptime– How long can the system be “down” before

significant costs are incurred?

• Processing Delays / Response Times– How quickly must a transaction be

processed? – What is the worst online response time that is

acceptable


9

Management Issues (2)

• Disaster Recovery– What plans are in place to recover lost

business data?– What plans are in place to resume business

processing in case of disaster?

• Audit– Can you verify the integrity of the system?– How will you know if transactions are not

processed or are processed incorrectly?


10

TPS By Function

• Order Processing

• Procurement & Inventory Control

• Accounting


11

Order Processing TPS

• Order capture– Variety of means

• Configuration• Shipment planning and inventory

allocation– Prioritize orders, select shipment locations,

allocate inventory to orders

• Shipping and warehousing– Picking, packing, invoicing, reporting


12

Procurement

• Inventory Control– Raw materials, WIP, FGI, etc

• Purchase Order Processing– Generating, transmitting, maintaining

purchase orders

• Receiving• Accounts Payable

– Boundary between procurement and accounting


13

Accounting

• Accounts Payable

• Accounts Receivable

• Budget

• Payroll

• General Ledger

• Asset Management


14

Disadvantages of Functionally Organized TPS

• Processing inefficiency

• Data redundancy– Causes integrity problems– Inefficient

• Temporal integrity problems– Caused by different times at which processing

occurs

• Lack of information coherence


15

Enterprise Resource Planning Systems

• Key word is Enterprise: solution designed for entire enterprise

• All processes organized around one enterprise-wide data model


16

Advantages of ERP

• Elimination of costly legacy systems– Old systems are expensive to maintain and

reduce business agility

• Improvement of processes– ERP may have implemented best-in-class

processes

• Improve data access and data integrity– Provide complete, consistent view of

enterprise data


17

Disadvantages of ERP

• Implementation cost– Software and hardware– Expertise– Opportunity costs

• Time to implementation– Lengthy and difficult process

• MOC (management of change) challenges• System integration difficulties• Vendor dependence


18

Current ERP Vendors

• SAP

• Baan

• PeopleSoft

• Oracle

• J. D. Edwards

• Manugistics


19

R/3 Architecture

• Functionally rich– More functional options than a business will

ever need

• Logical– Built around information model– 10,000 tables

• Control tables• Application data tables

– Heavily parameterized


20

R/3 Architecture (con’t)

• Hardware– PC Clients– Application server– Database server

• Public interfaces– BAPI

• Customization– ABAP Development System

mis 175 spring 2002 chapter 9mis 221 1 transaction processing systems manual or automatic – all...

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