Chapter 8
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CHAPTER 8. Information Systems that Support Organizations. CHAPTER OUTLINE. 8.1 Transaction Processing Systems 8.2 Functional Area Information Systems 8.3 Enterprise Resource Planning Systems. LEARNING OBJECTIVES. Describe transaction processing systems.

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Chapter 8


Information Systems that Support Organizations

Chapter outline


8.1 Transaction Processing Systems

8.2 Functional Area Information Systems

8.3 Enterprise Resource Planning Systems

Learning objectives


  • Describe transaction processing systems.

  • Describe functional area information systems and the support they provide for each functional area of the organization.

  • Describe enterprise resource planning systems.

Chapter opening case

Chapter Opening Case

UPS: Synchronizing the world of commerce

Chapter opening case continued

Chapter opening case (continued)

UPS Worldport

8 1 transaction processing systems tps

8.1 Transaction Processing Systems (TPS)

Batch Processing

Online Transaction Processing (OLTP)

Rudy Giuliani checking out of a Wal-Mart using a bar code scanner that produces data captured by a transaction processing system

Note: the barcode scanner is an example of source data automation

How transaction processing systems manage data

How Transaction Processing Systems Manage Data

8 2 functional area information systems

8.2 Functional Area Information Systems

  • Functional Area Information Systems are designed to support a functional area by increasing its internal effectiveness and efficiency in the following areas:

    • Accounting

    • Finance

    • Marketing

    • Operations (POM)

    • Human Resources Management

The world s cheapest car

The World’s Cheapest Car

Examples of information systems supporting the functional areas

Examples of Information Systems Supporting the Functional Areas

Functional area information systems reports

Functional Area Information Systems Reports

  • Routine reports

  • Ad hoc (on demand) reports

    • Drill-down reports

    • Key-indicator reports

    • Comparative reports

  • Exception reports

Summary report

Summary Report

A summary report is one type of routine report

Detailed report

Detailed Report

A detailed report is another type of routine report

Drill down report

Drill-Down Report

Drill-down report is a type of ad-hoc report

Key indicator report

Key-Indicator Report

Key-indicator report is a type of ad-hoc report

Comparative report

Comparative Report

Comparative report is one type of ad-hoc report.

Exception report

Exception Report

8 3 enterprise resource planning systems erp

8.3 Enterprise Resource Planning Systems (ERP)

The major objective of ERP systems: integrate the functional areas of the organization by enabling seamless information flows across them.

Problems with information silos

Problems with information silos

Sap modules

SAP Modules

Erp systems continued

ERP Systems (continued)

Abusiness processis a set of related steps or procedures designed to produce a specific outcome.

Chapter 8

Core ERP Modules




& Production


Customer Relationship Management Module

Human Resources Module

Accounting and Financial Module

Supply Chain Management Module

E-Business Module



ERPPlatform & Database




Extended ERP Modules

The world bank

The World Bank

Chapter closing case

Chapter Closing Case

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