Unit 3 Flashcards
- What are transaction processing systems (TPS)?
Transaction processing system (TPS) supports
the monitoring, collection, storage and processing of
data generated by each of the organization’s basic
business transactions.
The data is input to the organisation’s database (no integration among application systems).
- What are the major features of TPS?
TPS must handle large volumes of data, avoid errors, and provide a highly secure and stable environment.
Main features: performance, availability, data integrity, ease of use, and modular growth.
- Describe the relationship between TPS, MIS and DSS.
In terms of a decision-making hierarchy, TPS–>MIS–>DSS. TPS extracts useful information to input into the MIS for managers, which in turn hands this information over to the DSS which most commonly is senior-managers/executives taking decision at an organisational level.
- What is an audit trail in transaction processing systems?
An audit trail is a function that traces the detailed transactions relating to any item in an accounting record.
- What is an ERP system? How does an ERP system enforce best practices in an organisation?
An Enterprise Resource Planning System (ERP) is a centralised IS that allow for information sharing across business processes. ERP adopts a business process view of the overall organisation.
The primary features are data sharing, joint execution, and consolidation of information.
ERP integrates all departments and functions throughout an organisation into a single information system so that employees can make enterprise-wide decisions by viewing enterprisewide information on all business operations.
In NetSuite, best-practice ERP is embedded in the software, which grants an organisation the pleasure of having a smooth information flow throughout the organisation.
- What is the relationship between ERP and information silos?
ERP systems effectively eliminates information silos.
- Describe two main business processes supported by ERP systems.
Accounting and Manufacturing.
- What are the costs and benefits of ERP systems?
Benefits: data sharing in real-time, implements integrated processes, better insight, information silos eliminated, better integration with supply chain partners.
Costs: package size, new hardware, consultant fees, implementation costs, training costs.
- What are the challenges of implementing ERP systems?
ERP vendor selection, gap capabilities and requirements, customisation, change management (underestimating the complexity of the transition process).
