Presented By:

Deepali Bhardwaj

Transaction Processing Systems

Business Transactions
Record of events that occur as part of doing business, such as

a sale, purchase, deposit, refund, transfer, payment, etc.

Transaction Processing Systems Perform and record daily, routine transactions, necessary to conduct business
such as a sale, purchase, deposit, refund, transfer, payment, etc. Tasks, resources, goals are predefined and structured Example: Sales order processing, payroll, etc

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Types of Transaction Processing

Batch processing On-line processing

Real-time processing

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Business Information Systems TPS And MIS

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Enterprise Applications
Span functional areas
Execute business processes across firm Include all levels of management

Four major applications:

Enterprise systems aka Enterprise Resource Planning Supply chain management systems Customer relationship management systems

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Enterprise Applications Architecture

Enterprise applications automate processes that span multiple business functions and organizational levels and may extend outside the organization.

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Enterprise Applications
SCM SRM CRM

ELM

ERP

PLM

EAM

CPM

BIW

SCM: Supply Chain Management CRM: Customer Relationship Management ERP: Enterprise Resource Management EAM: Enterprise Asset Management CPM: Corporate Performance Management
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SRM: Supplier Relationship Management ELM: Employee Lifecycle Management PLM: Product Lifecycle management BIW: Business Intelligence Management
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Enterprise Application Suites

Consists of various groups of Products or components

ERP

PLC

SCM

CRM

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Enterprise Application Suites

Each product consists of modules Each module is specialized and connected Entities are shared and data is transferred

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Potential Of Enterprise Applications

Enterprise integration

Better decision making

Standardising Systems and Procedures across the

Enterprise Transparency Best global management practices Global IS Infrastructure

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Enterprise Resource Planning (ERP)

Software application with a centralized database that

you can run your company on and manage companys resources

Suite of integrated software modules and a common

central database

Resolves problem of fragmented, redundant data sets

and systems

ERP includes analytical tools to use captured data to

evaluate overall performance

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ERP Systems

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ERP Software
Built around thousands of predefined business

processes that reflect best practices

To implement, firms:
Select modules they wish to use Map business processes to software processes Use softwares configuration tables for customizing

Some ERP products: Oracle Peoplesoft, SAP, SSA Global(BaaN), Microsoft (Great Plains)
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What problems was BSE encountering as it expanded?

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Management factors responsible for these problems

Good to have management commitment but poor

planning of time allocation led to problems in the day to day operations

Management decision to extensively customize SAP

when little knowledge of the product existed

Weak project planning and execution
Converting and cleansing data not planned well Testing not completed

Training not planned well too early so needed retraining

Delayed decision to upgrade SAP

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ERP Customization vs Configuration

Difference between Configuration and Customization: Configuration is the normal set-up of the software, such as parameters, fields, and workflows. Do not require changes to the source code. Customization, on the other hand, requires changes to the source code and also requires a higher level of technical sophistication.

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ERP Customization vs Configuration

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Organization factors responsible for these problems

Customization process
Lack of SAP skills Poor testing process

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Technology factors responsible for these problems

New technology
Certain features not supported

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Potential Of Enterprise Applications

Enterprise integration

Operational efficiency
Better decision making Standardising Systems and Procedures across the

Enterprise Transparency Best global management practices Global IS Infrastructure

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Must Remember
Levels of customization Lose leverage of best practices High cost of management ERP roll-out transition from old system to new

system Training Focus on change management Long run ROI

Post-ERP depression (because of performance

degradation)
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If you had been in charge of SAPs ERP implementations, what would you have done differently?

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Hidden Costs of ERP Implementation

Training Integration and testing Customisation Data conversion Consultants Replacing your best and brightest staff System may suffer from weakest link problem due to inefficiency of one department affecting others ROI takes much longer Post-ERP depression (because of performance degradation)

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Some Statistics
A study of 63 Fortune 500 companies by META

group revealed:
Average time taken for implementation: 23 months Average Total Cost of Ownership(TCO): US$ 15 M

US$ 300 M for the largest and US$ 400K for the smallest organization

Drop in business performance in atleast 1 in 4 cases Drop in performance lasted between 3-9 months

after going live

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Some Statistics
Other studies reveal: 1/3rd implementation fail to achieve business benefits because its was considered an automation program and not change management program Only 10% ERP projects implemented in time and on budget Systems Integration and Change Management represent 80% of the TCO H/W and S/W represent 20% of TCO

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