Chapter 11: Information systems within the organization. In this chapter, the learning objectives are: Explain the purpose of transaction processing systems, explain the types of support that information systems can provide for each functional area of the organization, identify advantages and drawbacks to businesses implementing an enterprise resource planning system. | CHAPTER 11 Information Systems within the Organization CHAPTER OUTLINE Transaction Processing Systems Functional Area Information Systems Enterprise Resource Planning (ERP) Systems ERP Support for Business Processes LEARNING OBJECTIVES Explain the purpose of transaction processing systems. Explain the types of support that information systems can provide for each functional area of the organization. Identify advantages and drawbacks to businesses implementing an enterprise resource planning system. Describe the three main business processes supported by ERP systems. Transaction Processing Systems (TPS) Transaction Processing Systems (TPS) Transaction Transaction Processing System (TPS) Batch Processing Online Transaction Processing (OLTP) Functional Area Information Systems Functional Area Information Systems IS for Accounting and Finance IS for Marketing IS for Production/Operations Management IS for Human Resource Management Reports IS for Accounting and Finance Financial Planning and Budgeting Managing Financial Transactions Investment Management Control and Auditing IS for Production/Operations Management (POM) In-House Logistics and Materials Management Inventory Management Quality Control Planning Production and Operations Management Computer-Integrated Manufacturing Product Lifecycle Management IS for Human Resource Management Recruitment Human Resources Development Human Resources Planning and Management Reports Routine Reports Ad-hoc (On-Demand) Reports Drill-down reports Key indicator reports Comparative reports Exception reports Enterprise Resource Planning Systems (ERP) Enterprise Resource Planning Systems (ERP) ERP II Systems Benefits and Limitations of ERP Systems Implementing ERP Systems Enterprise Application Integration Benefits of ERP Systems They can make organizations more flexible, agile, and adaptive. They can improve managers’ ability to make better, more timely decisions. They can improve customer service, production, and distribution. Limitations of ERP Systems May require organizations to change existing business processes to fit the predefined business processes of the ERP software. Can be complex, expensive, and time consuming to implement. Major Causes of ERP Implementation Failure Failure to involve affected employees in planning and development Attempting too much too fast Insufficient training Failure to perform proper data conversion and testing Implementing ERP Systems On-Premise ERP Implementation Software-as-a-Service (SaaS) ERP Implementation ERP Support for Business Processes The Procurement, Fulfillment, and Production Processes Procurement Process Order Fulfillment Process Production Process Interorganizational Processes: ERP with SCM and CRM Enterprise Resource Planning (ERP) Supply Chain Management (SCM) Systems Enterprise Resource Planning (ERP) Customer Relationship Management (CRM) Systems Closing Case #1 The Problem The Solution The Results Closing Case #2 The Problem The Solution The Results
