Señor

Chapter 9

Transaction Processing,
Functional Applications &
Integration
Information Technology For Management 6th Edition
Turban, Leidner, McLean, Wetherbe
Based on lecture slides by L. Beaubien, Providence College

John Wiley & Sons, Inc.
Chapter 9

1

Functional Areas in a Business

Chapter 9

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Functional Information Systems





Functional Information Systemsupports one functional
area within a company by increasing its internal
effectiveness and efficiency.
Flow of work and information between departments might
suffer.
Characteristics:
●
Composed of smaller systems
●
Integrated or independent
●
Interfacing
●
Supportive of different levels
Chapter 9

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Transaction Processing Information
Systems


Enable core operations of anorganization



Business transactions that support mission-critical activities

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TPS monitors, collects, stores, processes, and
disseminates information for all core routine business
transactions



Typically involves high amount of data, and transactions
rates, regular basis, high level of detail, high integrity and
security concerns,...



Batch processing (processingonce per time interval) vs.
online processing (as soon as transaction occurs)
Chapter 9

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TPS – Online Transaction Processing Systems


With OLTP and Web technologies such as an extranet,
suppliers can look at the firm’s inventory level or production
schedule in real time. The suppliers themselves, in
partnership with their customers, can then assume
responsibility for inventorymanagement and ordering.



Interactive Internet TPS expands OLTP to provide
enhanced real time transaction processing over the
Internet or intranets. Multi-store chains can access a
centralized computer system no longer requiring in-store
processors.
Chapter 9

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TPS – Managing Production/Operations & Logistics

Chapter 9

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TPS – Managing Production/Operations &
LogisticsThe production and operations management (POM) function in 
an organization is responsible for the processes that transform 
inputs into useful outputs. In comparison to the other functional 
areas, POM is very diversified as are the supporting TPS. It 
also differs considerably among organizations (hospital vs 
production). 


A few of the IT supported POM areas are:


In-houselogistics and materials management



Planning production/operations



Computer-integrated manufacturing (CIM)
Chapter 9

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TPS – In-House Logistics & Materials Management
Logistics management deals with ordering, purchasing, inbound 
logistics (receiving), and outbound logistics (shipping) activities. 
These logistical activities cross several primary and secondary activities on the value chain. 


Inventory management determines how much inventory to keep.
Overstocking can be expensive; so are understock conditions.



Just-in-Time Systems is an approach that attempts to minimize
waste of all kinds (space, labor, materials, energy, etc.) and to
continuously improve processes and systems. The JIT concept is
used in mass customization and build-to-orderenvironments.



Project Management. A project is usually a one-time effort
composed of many interrelated activities, costing a substantial
amount of money, and lasting for weeks or years. Software tools
such as: program evaluation and review technique (PERT) and the
critical path method (CPM) are used to manage milestones,
resources, costs, etc.
Chapter 9

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TPS – Marketing and Sales -Customer Relations
It is essential for companies to know who their customers are and to treat 
them properly. Innovative products and services, successful promotions, 
customization, and customer service are a necessity for most organization.  

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Customer Profiles and Preference Analysis. Sophisticated information systems are
being developed to collect data on existing and potential...