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Lecture Introduction to MIS - Chapter 5: Operations and transactions

After reading this chapter, you should be able to answer the following questions: What are transactions? What difficulties arise in data capture and how do information system minimize the problems? What risks arise in transactions? How are transaction risks mitigated in electronic commerce? Why are new payment mechanisms needed? What are the major characteristics of data quality? What is the role of accounting in transactions? What are the operational elements in a human resources management system? | Introduction to MIS Chapter 5 Operations and Transactions Central Computer Sales Reports POS Terminals/ Registers Customers EDI Supplier Bank Additional Stores Process Control Transactions Outline Data Capture Electronic and Mobile Commerce Payment Mechanisms Data Quality Transactions The Role of Accounting HRM and Transaction Processing Cases: Retail Sales Appendix: Accounting Business Operations Tactical Management Strategic Mgt. EIS ES DSS Transaction Processing Process Control Data Capture Point of Sale Process Control Electronic Data Interchange Central Computer Sales Reports POS Cash Registers Customers EDI Supplier Bank Process Control Additional Stores Strategy Tactics Operations Warehouse Inventory Management CEO Information Data Capture: Sales Collecting transaction data at the point of sale ensures accurate data, speeds transactions, and provides up-to-the-minute data to managers. Process Control Various Production machines: lathe, press, dryer, . Control Terminal Production data: Quantity Quality Time Machine status Control settings and commands Electronic Data Interchange The price of paper $30 to $40 for each purchase order $24 to $28 for suppliers to handle EDI $12 for orders 0.32 for suppliers Proprietary EDI Commercial providers and standards EDI: Proprietary Supplier Customer 1 Queries & Orders Invoices & confirmation Production Database & Accounts Order Database & Accounts Convert data Convert data Different format Customer 2 Firms must support multiple data formats and sometimes different computers for each contact. EDI: Standards Supplier Customer 1 Production Database & Accounts Order Database & Accounts Customer 2 Bank/EDI consolidator Convert to Standard Route Messages Messages to/from any customer Convert to Standard Convert to Standard EDI Standards Message Segment Composite Data Element Data Element Code Lists UN Edifact US ANSI X12 Segments for each area Detail data formats ANSI X12 Segments Partial List of segments Detailed . | Introduction to MIS Chapter 5 Operations and Transactions Central Computer Sales Reports POS Terminals/ Registers Customers EDI Supplier Bank Additional Stores Process Control Transactions Outline Data Capture Electronic and Mobile Commerce Payment Mechanisms Data Quality Transactions The Role of Accounting HRM and Transaction Processing Cases: Retail Sales Appendix: Accounting Business Operations Tactical Management Strategic Mgt. EIS ES DSS Transaction Processing Process Control Data Capture Point of Sale Process Control Electronic Data Interchange Central Computer Sales Reports POS Cash Registers Customers EDI Supplier Bank Process Control Additional Stores Strategy Tactics Operations Warehouse Inventory Management CEO Information Data Capture: Sales Collecting transaction data at the point of sale ensures accurate data, speeds transactions, and provides up-to-the-minute data to managers. Process Control Various Production machines: lathe, press, dryer, . Control Terminal .