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s daily operations and produce a database used by other firm systems ? A related application is Customer Relationship Management (CRM) ? CRM uses data warehousing, meaning data accumulates over time and can retrieved for use in decision making 3 THE TRANSACTION PROCESSING SYSTEM ? This term TPS is used to describe the IS that gathers data describing the firm’s activities, transforms the data into information, and makes the information available to users both inside and outside the firm ? Figure is a model of a TPS where data is gathered from the firm’s physical system and environment, and entered into a database ? Data processing software transforms the data into information for the firm’s management and for individuals and anizations in the firm’s environment 4 5 System Overview ? Data flow diagrams (DFDs) are used to document the system in a hierarchical manner ? The diagram in Figure represents the highest level, called a context diagram because it presents the system in the context of its environment ? The data flowing from the distribution system to management consists of the standard accounting reports 6 7 The Major Subsystems of the Distribution System ? While context diagrams define the system boundary, other DFDs are used to describe the major subsystems in the firms data processes ? When a series of DFDs are used in a hierarchy, they are called leveled DFDs ? Figure which is a Figure 0 diagram showing three major subsystems ? These subsystems are identified by the numbered upright rectangles in Figure 8 9 Systems That Fill Customer Orders ? Figure shows the four main systems involved in filling customer orders: ? The order entry system enters customer orders into the system ? The inventory system maintains the inventory records ? The billing system prepares the customer invoices, and ? The accounts receivable system collects the money from the customers ? Figure expands Process 1 shown i