Transaction Processing, Electronic Commerce,

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Chapter 8

• Transaction Processing, Electronic Commerce,
  Enterprise Resource Planning Systems

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TPS, MIS, DSS, and AI/ES (Figure 8.1)
Transaction Processing Systems (TPS) Perform
routine operations serve as a foundation for
other systems
Transactions Basic business operations such as
customer orders, purchase orders, receipts, time
cards, invoices, payroll checks in an
organization
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Batch vs. On-Line Transaction Processing (Figure
8.2)
Batch Processing A system in which business
transactions are accumulated over a period of
time prepared for processing as a single unit
or batch
On-Line Transaction Processing (OLTP) A system
whereby each transaction is processed
immediately, without the delay of accumulating
transactions into a batch
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Integration and Objectives of TPS

• Integration of TPS (Figure 8.3)
• Objectives of TPS
• Process data generated by about transactions
• Maintain a high degree of accuracy
• Ensure data information integrity and accuracy
• Produce timely documents reports
• Increase labor efficiency
• Help provide increased enhanced service
• Help build maintain customer loyalty

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Simplified Overview of TPS (Figure 8.4)
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DP Activities Common to TPS (Figure 8.5)

• A Transaction Processing Cycle
• Data Collection
• Data Editing
• Data Correction
• Data Manipulation
• Data Storage
• Document Production
• Source Data Automation Process of capturing data
  at its source with minimal manual effort, entered
  directly into the computer without human
  intervention

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Control and Management Issues

• Business Resumption Planning Process of
  anticipating providing for disasters
• Disaster Recovery Implementation of the business
  resumption plan
• TPS Audit Examination of the TPS in an attempt
  to answer 3 basic questions
• Does the system meet the business need?
• What procedures controls have been established?
• Are the procedures controls being properly used?

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Traditional TPS Order Processing (Figure 8.7)
Order Processing Processing an order from entry
to delivery, including traditional accounting
transactions
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Enterprise Resource Planning (ERP) (Table 8.5)
ERP Real-time monitoring of business functions
across the enterprise
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Enterprise Resource Planning

• Advantages
• Eliminate costly, inflexible legacy systems
• Provide improved work processes
• Provide access to data for operational decision
  making
• Upgrading technology infrastructure
• Disadvantages
• Time consuming, difficult, expensive to implement
• Make radical changes in how a company operates
• Lack of vendor responsiveness in light of high
  demand

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Example of an ERP System - SAP/R3

• Clients in the SAP system
• Application servers in the SAP system
• Business application programming interfaces
  (BAPIs)
• Database server in the SAP system
• Objects in the SAP system
• Repository
• Tables

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SAP Three-Tier Client/Server Architecture (Figure
8.24)

• Database servers hold data that are accessed
  updated in real-time
• Applications servers are used to execute client
  requests to update master files
• Client desktop computers The R/3 system is able
  to support hundreds or thousands of clients
  (e.g., Pentium PCs)

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Business Application Programming Interface (BAPI)
(Figure 8.25)
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Chapter 8 Case

• Case 3 FedEx and SAP team up (pp. 385-86)

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Electronic Commerce (E-Commerce)

• Business-to-business problems
• Inadequate models
• Integrating with existing systems
• Improving relationships with suppliers,
  customers, distributors
• Consumer problems
• Waiting for images to download
• Security of credit information
• Figuring out the ordering process
• Currently a small part of all commerce

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5 Stage Model of E-Commerce (Figure 8.22)

• Stages consumers experience in the sales life
  cycle
• Search for identify supplier(s)
• Selection negotiation
• Purchasing
• Product service delivery
• traditional delivery
• electronic distribution
• After-sales service

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Forecasted Volume of E-Commerce
1997 2000
Consumer E-Commerce 0.5 billion 7
billion Business-to-business E-Commerce 8.0
billion 66 billion
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Purchasing Products Services Electronically

• Establish credit with suppliers
• Secure E-Commerce transactions
• Secure credit transactions
• Secure Financial Transaction (SET)
• Secure Sockets Layer (SSL)
• Others
• CyberCash
• Electronic wallets, purses, etc.
• Digicash options

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E-Commerce

• Everything you know about e-commerce is WRONG!
• CEOs still have control
• Online revenues do matter for justifying
  infrastructure
• Profitability is good
• It isnt just clicks versus mortar
• Business models may be different
• Indirect channels are crucial partners
• Going global includes importance of local image
• Speed, speed more speed

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E-C Components Principles (1)

• Search engines
• Portals
• Virtual community
• Topical sites
• Site design
• Ease of use (linking structure, intuitiveness)
• Robustness
• Push vs. Pull
• Push Web sites can push customized information
  to consumer/business
• Pull Consumers/businesses have to search for
  information/product/service

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E-C Components Principles (2)

• Security
• Firewalls
• Encryption
• Cookies
• Privacy considerations
• Collecting data
• Changing data (includes merging data)
• Notification of potential uses of data
• Permission to use data for purposes not
  originally intended

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E-C Components Principles (3)

• E-Markets
• Consumer auctions
• B2B auctions brokers
• Travel services
• One-click process patented
• E-Payments
• Cybercash
• Credit cards

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E-C Components Principles (4)

• Applications
• Bill paying
• Education
• Elections
• Entertainment
• Extranets
• Intranets
• Productivity tools
• Purchasing
• Research

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EC Customer Service

• Customer service
• 4 out of 5 online purchasers have experienced a
  failed purchase
• 25 of those frustrated say they will never go
  back
• 8 rate of abandonment

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EC Where To Now???

• What are trends?
• What are technological advances?
• Push vs. Pull
• Push Advances in technology push applications
  for the technology to be used
• Pull Business/consumer needs pull the technology
  to be developed to meet the needs
• Permanence of the Web as information space (Tim
  Berners-Lee, 1999)