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Running Head: MIS5010 WEEK 2 1

The document discusses various information systems and analyzes transaction processing systems (TPS). TPS helps process multiple transactions but requires customization for each organization, making it expensive. Increased use of TPS led to slowed processing, but middleware-level distributed systems improved speeds. The partnership between Apple and Starbucks aims to integrate payment systems and allow customers to download songs in Starbucks via iTunes, increasing transaction volume. Both companies benefit through extended brand reach and increased revenues.

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Zizou Tairus
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82 views

Running Head: MIS5010 WEEK 2 1

The document discusses various information systems and analyzes transaction processing systems (TPS). TPS helps process multiple transactions but requires customization for each organization, making it expensive. Increased use of TPS led to slowed processing, but middleware-level distributed systems improved speeds. The partnership between Apple and Starbucks aims to integrate payment systems and allow customers to download songs in Starbucks via iTunes, increasing transaction volume. Both companies benefit through extended brand reach and increased revenues.

Uploaded by

Zizou Tairus
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Running head: MIS5010 WEEK 2 1

MIS5010 WEEK 2

Student’s Name

Institutional Affiliation
MIS5010 WEEK 2 2

MIS5010 WEEK 2

Part I

There various systems that have been discussed during the information science classes

and they include transaction processing system (TPS), management information systems (MIS),

decision support system (DSS), intelligent support system (ISS), enterprise support system

(ESS), office automation system (OAS), knowledge management system (KMS), and

interorganizational system (IOS).

The system chosen for analysis to identify its pitfalls is the transaction processing system.

TPS is designed to break down transactions utilizing a simple and unified method. The system is

mainly used due to its ability to handle multiple transactions. Despite having many advantages,

TPS has some pitfalls as noted in the article, Accounting Information Systems Implementation,

by Yohannes Kurniawan et al (2017). The authors note that TPS is not a universal system that

can be used by any organization. Instead, it has to be designed specifically to fit the financial

system of a particular organization. The requirement to design each TPS for an organization

makes it expensive to set up and install. Its use also lacks a standard format. An organization that

uses the system should therefore make use of specialized personnel.

The increased use of TPS by organizations to process their transactions brought much

challenges that includes slowed processing speeds for transactions. However, the invention of

middleware-level distributed system has helped in improving the transaction processing speeds.

According to Li et al (2017), note that the middleware-level distributed system facilitates correct

execution and migration of data because it utilizes monitoring nodes that are distributed into the
MIS5010 WEEK 2 3

database system. It thus helps in faster handling of the increased transactional requests by the

clients of an organization.

Apple and Starbucks need to utilize the transaction processing system to make their

partnership successful. The project includes allowing the Starbucks users to download a song

playing in Starbucks via their iTunes supported systems. The project will result in increased

transaction requests that have to be processed faster. Use of TPS can help in facilitating the

transactions.

Part II

Apple and Starbucks have formed a partnership that incorporates wireless fidelity

network technology integration, iTunes music store, wireless find technology, mobile pay

technology as well as Apple pay technology. The integration of Starbucks and Apple pay

technology enable the companies to form a partnership that creates a bigger payment system that

has the ability to reach approximately 90 percent of the American population (Ireland, 2008).

Apple has millions of electronic cards that have been integrated into its mobile payment system

while Starbucks has a relatively largely mobile payment system that has been amassed by Apple

thus allowing the two companies to form a partnership in payment.

The partnership between the two companies has also been facilitated by the Apple’s

iTunes and the Starbucks Wi-Fi network. All Starbucks stores have wireless networks that allow

their customers to surf the internet while enjoying their cup of coffee. The management of the

company spotted a promotional opportunity and formed a partnership with Apple that enables its

customers to search, review, buy and download music from iTunes (Ireland, 2008). The Apple

music and Wi-Fi integration technologies works best in America due to a large number of
MIS5010 WEEK 2 4

Americans that use Apple devices. The service allows Starbucks customers to access iTunes

without the burden of extra data connectivity costs. The customers can access currently playing

music in Starbucks and any other song in the iTunes database.

The partnership benefits both Apple and Starbucks. Apple Company will benefits from

the partnership through extension of the reach of its Apple Pay service. There are some

Starbucks stores that will start accepting the service thus popularizing it among the Starbucks

clients (Weichert, 2017). It will also be an opportunity for Apple Company to extend its pay

service to the international market. Starbucks has over 30,000 locations of operations worldwide.

Starbucks clients in those locations will get to know about the Apple Pay service. Apple

Company will also benefit from the increased iTunes downloads. Starbucks Company benefits

from the partnership by gaining revenues from the paid advertisements that are made on the

Starbucks applications. It also gains revenues from the music purchases made while at the

Starbucks stores. Therefore, the partnership will help both companies to earn increased revenues

while further extending their brands.

The partnership between Apple and Starbucks requires technology integration to make it

successful. The organizations have to integrate their payment systems to enable customers pay

for the services seamlessly. The partnership will, thus, see the integration of Starbucks mobile

payment system and Apple pay services. The companies will also need to utilize a transaction

processing system that allows for faster processing of the client payments to allow downloading

of songs while they are still at the Starbuck stores.

The following diagram presents a business case use in the partnership between Apple and

Starbucks companies:
MIS5010 WEEK 2 5
MIS5010 WEEK 2 6

References

Ireland, R. D. (2008). Understanding business strategy: concepts and cases (9780324578997).

South-Western.

Kurniawan, Y., Karsen, M., Juwitasary, H., & Tapia, D. F. C. (2017, November). Accounting

information systems implementation:(A case study approach). In 2017 International

Conference on Information Management and Technology (ICIMTech) (pp. 294-299).

IEEE.

Li, J., Ge, Q., Wu, J., Li, Y., Yang, X., & Ma, Z. (2017). Research and implementation of a

distributed transaction processing middleware. Future Generation Computer Systems, 74,

232-240.

Weichert, M. (2017). The future of payments: How FinTech players are accelerating customer-

driven innovation in financial services. Journal of Payments Strategy & Systems, 11(1),

23-33.

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