Download - Information Systems Within the Organization
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Information Systems Within the Organization
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1. Explain the purpose of transaction processing systems.
2. Explain the types of support information systems can provide for each functional area of the organization.
3. Identify advantages and drawbacks to businesses implementing an enterprise resource planning system.
4. Describe the three main business processes supported by ERP systems.
5. Discuss the three major types of reports generated by the functional area information systems and enterprise resource planning systems, providing examples of each type.
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1.Transaction Processing Systems
2.Functional Area Information Systems
3.Enterprise Resource Planning (ERP) Systems
4.ERP Support for Business Processes
5.Reports
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[ [ Opening Case Opening Case IT Transformation at IT Transformation at
Ford Motor Company Ford Motor Company ]]
• The Problem
• The Solution
• The Results
• What We Learned from This Case
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About About [small] [small] businessbusiness
Henthorn Mower & Engine Service and ADP
10.1
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Transaction Processing Systems (TPS)
10.1
• Transaction• Transaction Processing System
(TPS)• Online Transaction Processing
(OLTP)
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Transaction Processing Systems (TPS)• Transaction Processing System (TPS)
– Continuous ‘real-time’ data collection– Efficiently handle high volumes of data and large
variations in those volumes– Avoid errors and downtime– Record results accurately and securely– Maintain privacy and security– Source data automation– Batch processing
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Functional Area Information Systems
10.2
• Information Systems for Accounting and Finance
• Information Systems for Marketing
• Information Systems for Production/Operations Management
• Information Systems for Human Resource Management
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Information Systems for Accounting and Finance
• Financial Planning and Budgeting• Managing Financial Transactions• Investment Management• Control and Auditing
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Financial Planning and Budgeting• Financial Planning and Budgeting
– Financial and economic forecasting
– Budgeting
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Managing Financial Transactions• Managing Financial Transactions
– Global stock exchanges
– Managing multiple currencies
– Virtual close
– Expense management automation (EMA)
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Control and Auditing
• Control and Auditing– Budgetary control
– Auditing• Two basic purposes of Audits
– Monitor how the organization’s monies are being spent
– Access the organization’s financial health
– Financial ratio analysis
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Information Systems for Production/ Operations Management• In-House Logistics and Materials
Management• Inventory Management• Quality Control• Planning Production and Operations• Computer-Integrated Manufacturing• Product Life Cycle Management
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Information Systems for Human Resource Management• Recruitment• Human Resources Development• Human Resources Planning and
Management– Payroll and employees’ records
– Benefits administration
– Employee relationship management
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Enterprise Resource Planning (ERP) Systems
10.3
• ERP II Systems• Benefits and Limitation of ERP
Systems• Implementing ERP Systems• Software-as-a-Service ERP
Implementation• Enterprise Application Integration
– Enterprise Application Integration (EAI)
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Benefits and Limitations of ERP Systems
• Major Benefits of ERP Systems• Major limitations of ERP
implementations• Major causes of ERP implementation
failure
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Major Benefits of ERP Systems• Organizational flexibility and agility• Decision support• Quality and efficiency
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Major Limitations of ERP Implementations• Since ERP’s are based on best
practices companies may need to change their methods of achieving business objectives
• ERP systems can be complex, expensive, and time-consuming to implement.
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Major Causes of ERP Implementation Failure• Failure to involve affected employees in
the planning and development phases and in change management processes
• Trying to do too much too fast in the conversion process
• Insufficient training in the new work tasks required by the ERP system
• The failure to perform proper data conversion and testing for the new system
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Implementing ERP Systems• On-Premise ERP Implementation
– Vanilla approach
– Custom approach
– Best of breed approach
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Software-as-a-Service ERP Implementation
• Three major advantages of using a cloud-based ERP system are:
• Three major disadvantages of using cloud-based ERP systems
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Three major advantages of using a cloud-based ERP system are:• The system can be used from any location
that provides Internet access• Companies using cloud-based ERP avoid the
initial hardware and software expenses that are typical of on-premise implementations
• Cloud-based ERP solutions are scalable, meaning it is possible to extend ERP support to new business processes and new business partners (e.g., suppliers) by purchasing new ERP modules.
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Three major disadvantages of using cloud-based ERP systems are:
• It is not clear whether cloud-based ERP systems are more secure than on-premise systems
• Companies that adopt cloud-based ERP systems sacrifice their control over a strategic IT resource
• Lack of control over IT resources when the ERP system experiences problems
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[about business][about business]
European Railway Successfully Converts to SAP
10.2
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ERP Support for Business Processes
10.4
• The Procurement, Fulfillment, and Production Processes– The Procurement Process– The Fulfillment Process– The Production Process
• Interorganizational Processes: ERP with SCM and CRM– SCM and CRM– ERP SCM– ERP CRM
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ERP Support for Business Processes
• The Procurement, Fulfillment, and Production Processes
• Interorganizational Processes: ERP with SCM and CRM
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The Procurement, Fulfillment, and Production Processes• The Procurement Process• The Fulfillment Process• The Production Process
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Interorganizational Processes: ERP with SCM and CRM• SCM and CRM• ERP SCM• ERP CRM
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Reports10.5
• Routine Reports• Ad-hoc (on-demand) Reports
– Drill-down reports
– Key-indicator reports
– Comparative reports
• Exception Reports
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[[ Closing Case Closing Case Truck Manufacturer Truck Manufacturer
Incorporates IS’s in Trucks Incorporates IS’s in Trucks ]]
• The Problem
• The IT Solution
• The Results