Chapter 9 Transaction Processing, Functional Applications and Integration Information Technology for Management Improving Performance in the Digital Economy 7 th edition John Wiley & Sons, Inc. Slides contributed by Dr. Sandra Reid Chair, Graduate School of Business & Professor, Technology Dallas Baptist University Turban and Volonino 9-1 Copyright 2010 John Wiley & Sons, Inc.
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Chapter 9
Transaction Processing, Functional Applications and Integration
Information Technology for Management Improving Performance in the Digital Economy
7th edition
John Wiley & Sons, Inc.
Slides contributed by Dr. Sandra Reid Chair, Graduate School of Business & Professor, Technology
Dallas Baptist University Turb
an a
nd
Vo
lon
ino
9-1 Copyright 2010 John Wiley & Sons, Inc.
Transaction Processing, Functional Applications and Integration
1. Functional Information Systems and Transaction Processing Systems
2. Production/Operations and Logistics
3. Managing Marketing and Sales Systems
4. Managing Accounting and Finance Systems
5. Managing Human Resources Systems
6. Integrating Functional Information Systems
7. Managerial Issues
9-2 Copyright 2010 John Wiley & Sons, Inc.
How Long, Value Chain Perspective
Copyright 2010 John Wiley & Sons, Inc. 9-3
Figure IT7eU
Copyright 2010 John Wiley & Sons, Inc. 9-4
9.1 Functional Information Systems & Transaction Processing Systems
Chapter 7 5
Value Chain Model
The value chain model views activities in
organizations as:
• Primary (reflecting the flow of goods and
services) or
• Secondary (supporting the primary
activities).
The organizational structure of firms is
intended to support both of these types of
activities.
Chapter 7 6
Functional Areas in a Business
Chapter 7 7
Transaction Processing Information
Systems
Computerization of Routine Transaction Processes
Objectives – handle high volume, avoid errors, handling of large variations, avoid down time, privacy and security.
XTP
Chapter 7 8
Transaction Processing Information Systems
Transaction Processing Information Systems
Copyright 2010 John Wiley & Sons, Inc. 9-9
TPS monitors, collects, stores, processes, & disseminates information for all routine core business transactions.
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5 Great (Free) Analytics Tools You Might Not Know About Yet
manufacturers to control and share product-related
data as part of a products design and development
effort. Web-based supply chains and other
technologies are employed to automate this
collaborative effort.
Chapter 7 28
TPS – Product Lifecycle Management
This electronic-based collaboration can reduce
Product cost
Travel expenses
Costs associated with product-change
management
Time it takes to get a product to market
Figure 9.3
Copyright 2010 John Wiley & Sons, Inc. 9-29
The production/operations management functions transform inputs into useful outputs. (Source: J.R. Meredith and S. M. Shafer, Operations Management. New York: Wiley, 2002. Reprinted by permission of John Wiley & Sons, Inc.)
• Purchasing results in incoming materials & parts.
• Parts inspected for quality then stored.
• Activities supported by information systems.
Copyright 2010 John Wiley & Sons, Inc. 9-30
e-Procurement
Copyright 2010 John Wiley & Sons, Inc. 9-31
E-procurement (electronic procurement, sometimes also known as supplier exchange) is the business-to-business or business-to-consumer or Business-to-government purchase and sale of supplies.
Information systems that support logistics & materials management:
Radio-frequency identification (RFID) is the use of an object (typically referred to as an RFID tag) applied to or incorporated into a product, animal, or person for the purpose of identification and tracking using radio waves. Some tags can be read from several meters away and beyond the line of sight of the reader.
• May be part of enterprise-wide total quality management (TQM) effort.
• Provide information about quality of incoming materials & parts; quality of in-process semi-finished & finished products.
• May compare results to metrics such as Six Sigma.
• Per wikipedia.org, Six Sigma is a business management strategy, originally developed by Motorola, that today enjoys widespread application in many sectors of industry.
• Project management is enhanced by tools such as PERT (program evaluation & review technique) & CPM (critical path method).
• Computer-integrated manufacturing promotes integration of various computerized factory systems & has 3 basic goals: simplification, automation, & integration and coordination.
Copyright 2010 John Wiley & Sons, Inc. 9-33
Copyright 2010 John Wiley & Sons, Inc. 9-34
9.3 Managing Marketing & Sales Systems
Chapter 7 35
TPS – Marketing and Sales Systems
Channel systems are the TPS involved in
the process of getting a product or service to
customers and dealing with their needs.
These systems link and transform marketing,
sales, procurement, logistics, and delivery activities
with other corporate functional areas.
Chapter 7 36
TPS – Marketing and Sales Systems
Some of the channel-system activities are:
Customer relations
Distribution channels and in-store innovations
Marketing management
Telemarketing
Figure 9.4
9-37 Marketing channel systems.
Improving Shopping & Checkout at Retail Stores
Copyright 2010 John Wiley & Sons, Inc. 9-38
Macy's expands consumer electronics kiosks program
Information kiosk enable customers to view catalogs
in stores
Self-checkout machines
Check-writers attached to cash registers
Computerization of various activities in retail stores
Video-based systems count and track shoppers in a
physical store
Chapter 7 42
TPS – Marketing Management
Pricing of Products or Services.
Salesperson Productivity.
Profitability Analysis
Sales Analysis And Trends.
New Products, Services, and Market Planning.
Web-Based Systems
Managing Marketing & Sales Systems
The Customer is King/Queen
• Customer Profiles and Preference Analysis
• Prospective Customer Lists and Marketing Databases
• Mass Customization
• Personalization
• Advertising and Promotions
Copyright 2010 John Wiley & Sons, Inc. 9-43
Managing Marketing & Sales Systems
Distribution Channels and In-Store Innovations • Improving Shopping and Checkout at Retail Stores Marketing Management • Pricing of Products or Services • Salespersons Productivity • Productivity Software • Profitability Analysis • New Products, Services, and Market Planning • Web-Based Systems in marketing
Copyright 2010 John Wiley & Sons, Inc. 9-44
Copyright 2010 John Wiley & Sons, Inc. 9-46
9.4 Managing Accounting & Finance Systems
Managing Accounting & Finance Systems
Financial Planning and Budgeting
• Financial and Economic Forecasting and Budgeting
• Budgeting
– Software Support
• Capital Budgeting
Copyright 2010 John Wiley & Sons, Inc. 9-33
Major Benefits of Using Budgeting Software
• Reduces time & effort in the budget process.
• Possible to easily explore & analyze implications of organizational & environmental changes.
• Can facilitate integration of corporate strategic objectives with operational plans.
• May make planning an ongoing, continuous process.
• Automatically monitor exceptions for patterns & trends.
Copyright 2010 John Wiley & Sons, Inc. 9-33
Figure 9.5
Copyright 2010 John Wiley & Sons, Inc. 9-49
Integrated accounting business software.
ASP : Active Server Pages SFA : Sales Force Automation
Managing Accounting & Finance Systems
Managing Financial Transactions
• XBRL: Extensible Business Reporting Language
Investment Management
• Access to Financial and Economic Reports
• Financial Analysis
Copyright 2010 John Wiley & Sons, Inc. 9-33
Managing Accounting & Finance Systems
Control and Auditing
• Risk Analysis
• Budgetary Control
• Auditing
• Financial Ratio Analysis
• Profitability Analysis and Cost Control
• Expense Management Automation
Copyright 2010 John Wiley & Sons, Inc. 9-33
Integrated Accounting Software
Copyright 2010 John Wiley & Sons, Inc. 9-52
See Top 7 Accounting, Financial & Inventory Software
XBRL is a standards-based way to communicate business and financial information. These communications are defined by metadata set out in taxonomies. Taxonomies capture the definition of individual reporting concepts as well as the relationships between concepts and other semantic meaning.
Recruitment • Using the Web for Recruitment • Using Social Networks and Intelligent Software • HRM Portals and Salary Surveys • Employee Selection Human Resources Maintenance and Development • Performance Evaluation • Training and Human Resources Development Human Resources Planning and Management • Personnel Planning and HR Strategies • Benefits Administration • Employee Relationship Management
Copyright 2010 John Wiley & Sons, Inc. 9-57
HRIS Applications
• Payroll
• Work Time
• Benefits Administration
• Recruiting
• Training
• Performance Records
Copyright 2010 John Wiley & Sons, Inc. 9-58
Figure 9.7
Copyright 2010 John Wiley & Sons, Inc. 9-59
HRM activities.
Recruitment
• Search engines on the Web can help with attracting & repelling appropriate candidates.
• Internet makes advertising much simpler process, although large numbers may result.
• Embedded intelligence to help manage entire recruitment process.
• Social networking sites such as Jobster & LinkedIn have gained widespread popularity.
Copyright 2010 John Wiley & Sons, Inc. 9-60
HR Maintenance & Development
• Performance evaluation – supervisor, peer, &/or subordinate. Wage reviews are also related to performance evaluations.
• Training & HR development – planning classes & tailoring specific training programs to meet needs of organization & employees. May include career development plan for each employee.
• IT supports planning, monitoring & control of these activities.
Copyright 2010 John Wiley & Sons, Inc. 9-61
Training Devices
• Web-based video clips.
• Mobile devices.
• Virtual reality.
• Interactive simulations.
Copyright 2010 John Wiley & Sons, Inc. 9-62
Copyright 2010 John Wiley & Sons, Inc. 9-63
9.6 Integrating Functional Information Systems
Integrating Functional Information Systems
• Reasons for Integration
• Integration of Front-Office with Back-Office Operations
• Using Enterprise 2.0 and Virtual Worlds
Copyright 2010 John Wiley & Sons, Inc. 9-64
Copyright 2010 John Wiley & Sons, Inc. 9-65
9.7 Managerial Issues
Managerial Issues
• Integration of functional information systems
• Priority of transaction processing
• Finding innovative applications
• Using the Web
• Systems integration
• Ethical issues
Copyright 2010 John Wiley & Sons, Inc. 9-66
Extreme Transaction Processing
• In Computer Science, Extreme Transaction Processing (XTP) is an exceptionally demanding form of transaction processing. Transactions of most high-end (more than 10,000 concurrent accesses or 500 transaction per second).
• Ultra-high-end (more than 100,000 concurrent accesses or 5,000 transaction per second) requirements or more would require this form of processing.
Copyright 2010 John Wiley & Sons, Inc. 67
Time for Deprivation to Have Serious Extreme Effect