E-Business & Transaction Processing System
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Transaction processing systems process data from business transactions in real-time or through periodic batch processing. They capture transaction data, update organizational databases to reflect changes from transactions, and generate documents and reports. Transaction processing systems allow users to make inquiries about transaction processing activity and receive immediate responses.
E-Business & Transaction Processing System
- 2. TRANSACTION PROCESSING SYSTEMS Transaction processing systems (TPS) are cross-functional information systems that process data resulting from the occurrence of business transactions. Transactions are events that occur as part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments. Think, for example, of the data generated whenever a business sells something to a customer on credit, whether in a retail store or at an e-commerce site on the Web. Data about the customer, product, salesperson, store, and so on, must be captured and processed.
- 3. ONLINE TRANSACTION PROCESSING SYSTEMS Online transaction processing systems play a strategic role in Web- enabled businesses. Many firms are using the Internet and other networks that tie them electronically to their customers or suppliers for online transaction processing (OLTP). Such real-time systems, which capture and process transactions immediately, can help firms provide superior service to customers and other trading partners.
- 4. THE TRANSACTION PROCESSING CYCLE Transaction processing systems, capture and process data describing business transactions, update organizational databases, and produce a variety of information products.
- 5. DATA ENTRY The first step of the transaction processing cycle is the capture of business data. For example, transaction data may be collected by point-of-sale terminals using optical scanning of bar codes and credit card readers at a retail store or other business. Transaction data can also be captured at an e-commerce Web site on the Internet.
- 6. TRANSACTION PROCESSING Transaction processing systems process data in two basic ways: (1) batch processing , where transaction data are accumulated over a period of time and processed periodically, and (2) real-time processing (also called online processing), where data are processed immediately after a transaction occurs. All online transaction processing systems incorporate real-time processing capabilities. Many online systems also depend on the capabilities of fault tolerant computer systems that can continue to operate even if parts of the system fail.
- 7. DATABASE MAINTENANCE An organization’s databases must be updated by its transaction processing systems so that they are always correct and up-to-date. Therefore, transaction processing systems serve to assist in maintaining the corporate databases of an organization to reflect changes resulting from day-to-day business transactions. For example, credit sales made to customers will cause customer account balances to be increased and the amount of inventory on hand to be decreased. Database maintenance ensures that these and other changes are reflected in the data records stored in the company’s databases
- 8. DOCUMENT AND REPORT GENERATION Transaction processing systems produce a variety of documents and reports. Examples of transaction documents include purchase orders, paychecks, sales receipts, invoices, and customer statements. Transaction reports might take the form of a transaction listing such as a payroll register, or edit reports that describe errors detected during processing.
- 9. INQUIRY PROCESSING Many transaction processing systems allow you to use the Internet, intranets, extranets, and Web browsers or database management query languages to make inquiries and receive responses concerning the results of transaction processing activity. Typically, responses are displayed in a variety of prespecified formats or screens. For example, you might check on the status of a sales order, the balance in an account, or the amount of stock in inventory and receive immediate responses at your PC.
- 10. ENTERPRISE COLLABORATION SYSTEMS Enterprise collaboration systems (ECS) are cross-functional information systems that enhance communication, coordination, and collaboration among the members of business teams and workgroups. Information technology, especially Internet technologies, provides tools to help us collaborate—to communicate ideas, share resources, and coordinate our cooperative work efforts as members of the many formal and informal process and project teams and workgroups that make up many of today’s organizations. Thus, the goal of enterprise collaboration systems is to enable us to work together more easily and effectively by helping us to: • Communicate: Share information with each other. • Coordinate: Organize our individual work efforts and use of resources.
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- 12. TOOLS FOR ENTERPRISE COLLABORATION The capabilities and potential of the Internet, as well as intranets and extranets, are driving the demand for better enterprise collaboration tools in business. However, Internet technologies like Web browsers and servers, hypermedia documents and databases, and intranets and extranets provide the hardware, software, data, and network platforms for many of the groupware tools for enterprise collaboration that business users want.
- 13. ELECTRONIC COMMUNICATION TOOLS Electronic communication tools include e-mail, voice mail, faxing, Web publishing, bulletin board systems, paging, and Internet phone systems. These tools enable you to send electronically messages, documents, and files in data, text, voice, or multimedia over computer networks. This helps you share everything from voice and text messages to copies of project documents and data files with your team members, wherever they may be. The ease and efficiency of such communications are major contributors to the collaboration process.
- 14. ELECTRONIC CONFERENCING TOOLS Electronic conferencing tools help people communicate and collaborate as they work together. A variety of conferencing methods enable the members of teams and workgroups at different locations to exchange ideas interactively at the same time, or at different times at their convenience. These include data and voice conferencing, videoconferencing, chat systems, and discussion forums. Electronic conferencing options also include electronic meeting systems and other group support systems where team members can meet at the same time and place in a decision room setting, or use the Internet to work collaboratively anywhere in the world.
- 15. COLLABORATIVE WORK MANAGEMENT TOOLS Collaborative work management tools help people accomplish or manage group work activities. This category of software includes calendaring and scheduling tools, task and project management, workflow systems, and knowledge management tools.
- 17. FUNCTIONAL BUSINESS SYSTEMS Functional Business System is a variety of types of information systems(transaction processing, management information , decision support , and so on) that support the business functions of accounting, finance, marketing, operation management and human resource management.
- 19. MARKETING INFORMATION SYSTEM Marketing information system provide information technologies that support major components of the marketing function. For example, Internet/intranet Web sites and services make an interactive marketing process possible where customers can become partners in creating, marketing, purchasing, and improving products and services. Sales force automation systems use mobile computing and Internet technologies to automate many information processing activities for sales support and management.
- 21. INTERACTIVE MARKETING The term interactive marketing has been coined to describe a customer-focused marketing process that is based on using the Internet, intranets, and extranets to establish two-way transactions between a business and its customers or potential customers. The goal of interactive marketing is to enable a company to use those networks profitably to attract and keep customers who will become partners with the business in creating, purchasing, and improving products and services.
- 22. TARGETED MARKETING Targeted marketing has become an important tool in developing advertising and promotion strategies to strengthen a company’s e- commerce initiatives, as well as its traditional business venues. Targeted marketing is an advertising and promotion management concept that includes five targeting components:
- 23. COMMUNITY Companies can customize their Web advertising messages and promotion methods to appeal to people in specific communities. They can be communities of interest, such as virtual communities of online sporting enthusiasts, or arts and crafts hobbyists, or geographic communities formed by the Web sites of a city or other local organization.
- 24. CONTENT Advertising, such as electronic billboards or banners, can be placed on a variety of selected Web sites, in addition to a company’s Web site. The content of these messages is aimed at the targeted audience. An ad for a product campaign on the opening page of an Internet search engine is a typical example.
- 25. CONTEXT Advertising appears only in Web pages that are relevant to the content of a product or service. So, advertising is targeted only at people who are already looking for information about a subject matter (e.g., vacation travel) that is related to a company’s products (e.g., car rental services).
- 26. DEMOGRAPHIC/PSYCHOGRAPHIC Web marketing efforts can be aimed only at specific types or classes of people: for example, unmarried, twenty-something, middle income, male college graduates.
- 27. ONLINE BEHAVIOR Advertising and promotion efforts can be tailored to each visit to a site by an individual. This strategy is based on a variety of tracking techniques, such as Web “cookie” files recorded on the visitor’s disk drive from previous visits. This enables a company to track a person’s online behavior at its Web site so marketing efforts (such as coupons redeemable at retail stores or e-commerce Web sites) can be targeted to that individual at each visit to its Web site
- 28. SALES FORCE AUTOMATION Increasingly, computers and the Internet are providing the basis for sales force automation. In many companies, the sales force is being outfitted with notebook computers, Web browsers, and sales contact management software that connect them to marketing Web sites on the Internet, extranets, and their company intranets. This not only increases the personal productivity of salespeople, but it dramatically speeds up the capture and analysis of sales data from the field to marketing managers at company headquarters. In return, it allows marketing and sales management to improve the delivery of information and the support they provide to their salespeople. Therefore, many companies are viewing sales force automation as a way to gain a strategic advantage in sales productivity and marketing responsiveness.
- 29. MANUFACTURING SYSTEMS Manufacturing information systems support the production/operations function that includes all activities concerned with the planning and control of the processes producing goods or services. Thus, the production/operations function is concerned with the management of the operational processes and systems of all business firms. Information systems used for operations management and transaction processing support all firms that must plan, monitor, and control inventories, purchases, and the flow of goods and service.
- 30. COMPUTER INTEGRATED MANUFACTURING A variety of manufacturing information systems, many of them Web- enabled, are used to support computer-integrated manufacturing (CIM). An overall concept that emphasizes that the objectives of computer- based systems in manufacturing must be to: • Simplify (reengineer) production processes, product designs, and factory organization as a vital foundation to automation and integration. • Automate production processes and the business functions that support them with computers, machines, and robots. • Integrate all production and support processes using computer networks, cross functional business software, and other information technologies.
- 31. CONT.. The overall goal of CIM and such manufacturing information systems is to create flexible, agile, manufacturing processes that efficiently produce products of the highest quality. Thus, CIM supports the concepts of flexible manufacturing systems, agile manufacturing, and total quality management. Manufacturing information systems help companies simplify, automate, and integrate many of the activities needed to produce products of all kinds. For example, computers are used to help engineers design better products using both computer- aided engineering (CAE) and computer-aided design (CAD) systems, and better production processes with computer-aided process planning. They are also used to help plan the types of material
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- 33. CONT.. Computer-aided manufacturing (CAM) systems are those that automate the production process. For example, this could be accomplished by monitoring and controlling the production process in a factory (manufacturing execution systems) or by directly controlling a physical process (process control), a machine tool (machine control), or machines with some humanlike work capabilities (robots)
- 34. CONT.. Manufacturing execution systems (MES) are performance-monitoring information systems for factory floor operations. They monitor, track, and control the five essential components involved in a production process: materials, equipment, personnel, instructions and specifications, and production facilities. MES includes shop floor scheduling and control, machine control, robotics control, and process control systems. These manufacturing systems monitor, report, and adjust the status and performance of production components to help a company achieve a flexible, high- quality manufacturing process.
- 35. CONT.. Process control is the use of computers to control an ongoing physical process. Process control computers control physical processes in petroleum refineries, cement plants, steel mills, chemical plants, food product manufacturing plants, pulp and paper mills, electric power plants, and so on. A process control computer system requires the use of special sensing devices that measure physical phenomena such as temperature or pressure changes. These continuous physical measurements are converted to digital form by analog-to-digital converters and relayed to computers for processing.
- 36. CONT.. Machine control is the use of computers to control the actions of machines. This is also popularly called numerical control. The computer-based control of machine tools to manufacture products of all kinds is a typical numerical control application used by many factories throughout the world.
- 37. HUMAN RESOURCE SYSTEMS The human resource management (HRM) function involves the recruitment, placement, evaluation, compensation, and development of the employees of an organization. The goal of human resource management is the effective and efficient use of the human resources of a company. Thus, human resource information systems (HRIS) are designed to support (1) planning to meet the personnel needs of the business (2) development of employees to their full potential (3) control of all personnel policies and programs.
- 38. CONT.. Originally, businesses used computer-based information systems to: (1) produce paychecks and payroll reports (2) maintain personnel records (3) analyze the use of personnel in business operations. Many firms have gone beyond these traditional personnel management functions and have developed human resource information systems that also support (1) recruitment, selection, and hiring (2) job placement (3) performance appraisals (4) employee benefits analysis (5) training and development (6) health, safety, and security.
- 40. ACCOUNTING SYSTEMS Accounting information systems are the oldest and most widely used information systems in business. They record and report business transactions and other economic events. Computer-based accounting systems record and report the flow of funds through an organization on a historical basis and produce important financial statements such as balance sheets and income statements. Such systems also produce forecasts of future conditions such as projected financial statements and financial budgets. A firm’s financial performance is measured against such forecasts by other analytical accounting reports.
- 41. CONT.. Operational accounting systems emphasize legal and historical record-keeping and the production of accurate financial statements. Typically, these systems include transaction processing systems such as order processing, inventory control, accounts receivable, accounts payable, payroll, and general ledger systems.
- 43. FINANCIAL MANAGEMENT SYSTEMS Computer-based financial management systems support business managers and professionals in decisions concerning (1) the financing of a business (2) the allocation and control of financial resources within a business. Major financial management system categories include cash and investment management, capital budgeting, financial forecasting, and financial planning.
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- 45. CONT.. Financial analysts also typically use electronic spreadsheets and other financial planning software to evaluate the present and projected financial performance of a business. They also help determine the financing needs of a business and analyze alternative methods of financing.