Electronic Business Systems

Topics: Business, Collaboration, Transaction processing Pages: 5 (1289 words) Published: February 15, 2014
Electronic Business Systems

Introduction: Electronic Business or E-business is the use of the internet or other applications of information technologies to aid online business, communications collaboration among business enterprises online and to support business processes and transactions on the internet.

E-business also includes E-commerce which is a part of E-business. It is not synonymous to E- Business as it is popularly but wrongly believed e-commerce is the buying, selling,marketing and servicing of products over the internet, all of which covers the business part of E-business.E- Business as a whole is much bigger which goes beyond just selling products to combining other applications to support any form of activity on the internet.

There are typically two sections that cover E-Business. They are- 1)Enterprise Business Systems: Under this system falls –

a)Cross Functional Enterprise Applications
b)Enterprise Application Integration
c)Transaction Processing Systems
d)Enterprise Collaboration Systems

2)Functional Business Systems : This system includes –

a)Marketing Systems
b)Manufacturing Systems
c)Human Resource Systems
d)Accounting Systems
e)Financial Management Systems

Enterprise Business Systems

Transaction Processing Systems

A transaction processing system is basically a system that divides work into individual, indivisible operations called transactions[1].It processes the resulting data from business transactions.

Transactions are events that take place when business is conducted. The events can be bank to bank deposits from the bank of one business person to another, payment made via PayPal (which is an e-commerce business which allows money to be transferred through the internet) to a creditor etc.An example can be a purchase of a lipstick made from the famous cosmetic website Maybelline . When a customer decides to buy the product she goes to the “Buy” option and clicks on it. She is immediately shown options to pay via the internet. When he or she chooses an option and makes the payment, the transaction processing system captures and processes data of the customer, the product she purchased, the amount she paid etc.Say if this person paid through a credit card then the system does the credit checks, updates the inventory, increases accounts receivables etc etc.Transaction processing system is vital for a an e-business as no business, electronic or otherwise can survive without generating revenues which require the support of a transaction processing system to be processed.

Some features of the transaction processing system are as follows- •Performance : A fast performance with rapid response is critical. Transaction processing systems are measured for the amount of transactions it can process in a small amount of time. The transaction system of the New York Stock exchange is a good example as the value of stock is constantly changing and millions of people buy stock sometimes all at the same time. The system needs to be fast and accurate to avoid miscalculations and late updates.

Continuous Availability: This system must be available when users are entering data. An example can be an ATM which is on 24 hours a day and seven days a week. It also has a transaction processing system in it which is vital for it to run properly. If the system breaks down at any point then the ATM will not work.

Data Integrity: The system has to be able to handle hardware and software problems without corrupting data [1].Multiple users may be using the same server to process certain data for example booking tickets for a movie. If a software problem occurs the transaction system must inform the users and prevent them from booking the same ticket for one customer.

User Friendly: The system should be user friendly as most users might be lay-men.A housewife...

References: 1) http://en.wikipedia.org/wiki/Transaction_processing_system (definition)
2) http://en.wikipedia.org/wiki/Target_marketing (definition)
3) Management Information Systems by O’ B rien and Marakas Eight Edition.(definitions )
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