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Transaction Processing Systems

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Enterprise Resource Planning Systems ... ERP may have implemented best-in-class processes. Improve data access and data integrity ... – PowerPoint PPT presentation

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Title: Transaction Processing Systems


1
Transaction Processing Systems
  • Manual or automatic all businesses
    systematically process transactions
  • Function process routine, day-to-day business
    activities
  • Computerized TPS
  • Batch
  • Online (real-time, OLTP)
  • The foundation of business systems

2
Batch TPS
  • Originally, the only available option
  • Transactions accumulated over period of time
  • Time period day, week, month
  • Transaction records accumulated in files
  • When batches are processed, what happens?
  • Update databases
  • Generate reports
  • Generate transactions for other systems

3
Batch Processing Pros and Cons
  • Pros
  • Relatively easy to program, install and maintain
  • Batches can be processed during low-activity
    periods
  • Cons
  • Information is delayed

4
Online TPS (OLTP)
  • Transactions are processed in real time
  • Required for any modern application where time
    is critical
  • Well supported by client/server computing model

5
Hybrid TPS
  • OLTP applications can feed transactions to batch
    systems
  • Examine GL only updated once per day
  • Real time order capture with delayed processing

6
TPS Requirements
  • Capture, process and store transactions
  • Produce reports and information about
    transactions
  • Produce transactions for other TPS
  • Be accurate and timely
  • Be efficient require less labor
  • Increase customer service
  • Increase competitive advantage

7
TPS Activity Model
  • Data capture
  • From online entry or external system
  • Data validation
  • Should be done as close to source as possible
  • Processing
  • Data manipulation
  • Database updating
  • Generation of transactions for other systems
  • Archive Transaction
  • Create documents and reports

8
Management Issues
  • Uptime
  • How long can the system be down before
    significant costs are incurred?
  • Processing Delays / Response Times
  • How quickly must a transaction be processed?
  • What is the worst online response time that is
    acceptable

9
Management Issues (2)
  • Disaster Recovery
  • What plans are in place to recover lost business
    data?
  • What plans are in place to resume business
    processing in case of disaster?
  • Audit
  • Can you verify the integrity of the system?
  • How will you know if transactions are not
    processed or are processed incorrectly?

10
TPS By Function
  • Order Processing
  • Procurement Inventory Control
  • Accounting

11
Order Processing TPS
  • Order capture
  • Variety of means
  • Configuration
  • Shipment planning and inventory allocation
  • Prioritize orders, select shipment locations,
    allocate inventory to orders
  • Shipping and warehousing
  • Picking, packing, invoicing, reporting

12
Procurement
  • Inventory Control
  • Raw materials, WIP, FGI, etc
  • Purchase Order Processing
  • Generating, transmitting, maintaining purchase
    orders
  • Receiving
  • Accounts Payable
  • Boundary between procurement and accounting

13
Accounting
  • Accounts Payable
  • Accounts Receivable
  • Budget
  • Payroll
  • General Ledger
  • Asset Management

14
Disadvantages of Functionally Organized TPS
  • Processing inefficiency
  • Data redundancy
  • Causes integrity problems
  • Inefficient
  • Temporal integrity problems
  • Caused by different times at which processing
    occurs
  • Lack of information coherence

15
Enterprise Resource Planning Systems
  • Key word is Enterprise solution designed for
    entire enterprise
  • All processes organized around one
    enterprise-wide data model

16
Advantages of ERP
  • Elimination of costly legacy systems
  • Old systems are expensive to maintain and reduce
    business agility
  • Improvement of processes
  • ERP may have implemented best-in-class processes
  • Improve data access and data integrity
  • Provide complete, consistent view of enterprise
    data

17
Disadvantages of ERP
  • Implementation cost
  • Software and hardware
  • Expertise
  • Opportunity costs
  • Time to implementation
  • Lengthy and difficult process
  • MOC (management of change) challenges
  • System integration difficulties
  • Vendor dependence

18
Current ERP Vendors
  • SAP
  • Baan
  • PeopleSoft
  • Oracle
  • J. D. Edwards
  • Manugistics

19
R/3 Architecture
  • Functionally rich
  • More functional options than a business will ever
    need
  • Logical
  • Built around information model
  • 10,000 tables
  • Control tables
  • Application data tables
  • Heavily parameterized

20
R/3 Architecture (cont)
  • Hardware
  • PC Clients
  • Application server
  • Database server
  • Public interfaces
  • BAPI
  • Customization
  • ABAP Development System
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