23362150 Transaction Processing System TPS Office Automation System OASsfg

7/30/2019 23362150 Transaction Processing System TPS Office Automation System OASsfg

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Mod-TWO

Transaction Processing System

(TPS)Office Automation System

(OAS)


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( )

TPS, MIS, DSS, and AI/ES

Hierarchy:

AI/ES

DSS

MIS

TPS

Information

Data

Less More Less More

More MoreLess Less

RoutineDecisionsupport

Input &output

Sophistication& complexity of

processing & analysis


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Transactions

Transactions Basic business operations such as customer

orders, purchase orders, receipts, time cards,

invoices, and payroll checks in an organization

Transaction processing systems (TPS) Perform routine operations and serve as a

foundation for other systems


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Purpose : Support operations Recording

Processing

Reporting

TPSs exist in e.g. Purchase of an airline ticket

Deposit or withdrawal of funds at a bank


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Transaction ProcessingSystems (TPS)

Computerized system that

performs and records the daily

routine transactions necessary toconduct the business; these

systems serve the operational level

of the organization


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TYPE: Operational-level

INPUTS: transactions, events

PROCESSING: updating

OUTPUTS: detailed reports

USERS: operations personnel, supervisors

DECISION-MAKING: highly structured

EXAMPLE: payroll, accounts payable


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Batch vs. On-Line

Transaction Processing Two types of TPS: Batch processing

A system whereby business transactions are

accumulated over a period of time and prepared forprocessing as a single unit or batch

On-line transaction processing (OLTP) A system whereby each transaction is processed

immediately, without the delay of accumulatingtransactions into a batch


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Batch Schematic

Data entry

of accumulated

transactions

Input

(batched)Output


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On-line Schematic

Output

Terminal

Terminal

Terminal

Terminal

Terminal

Terminal

Immediateprocessing

of eachtransaction


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Objectives of TPS Process data generated by and about transactions

Maintain a high degree of accuracy

Ensure data and information integrity and accuracy

Produce timely documents and reports

Increase labour efficiency

Help provide increased and enhanced service

Help build and maintain customer loyalty

Achieve competitive advantage


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Simplified Overview of aTransaction Processing System

Schematic


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Data entry & input

ProcessingDocuments

& reports

Database

Internally generatedtransactions:

shipped orders

purchase orders

employee time cards

Externally generatedtransactions:

customer orders

vendor invoices

customer payments

Internally generatedtransactions:

shipped orders

purchase orders

employee time cards

Externally generatedtransactions:

customer orders

vendor invoices

customer payments

Database update:

customer orders

inventory

purchase orders

customers

suppliers

Database update:

customer orders

inventory

purchase orders

customers

suppliers

Documents:

pick list

cheques to vendors

receiving notices

paycheques

Operational reports:

finished productinventory status

raw materials; packingmaterials; spare parts;inventory status

Documents:

pick list

cheques to vendors receiving notices

paycheques

Operational reports:

finished productinventory status

raw materials; packingmaterials; spare parts;inventory status


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Data Processing ActivitiesCommon to TPSs

A transaction processing cycle Data collection

Data editing

Data correction Data manipulation

Data storage

Document production

Schematic


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Data

collection

Data

edit

Data

manipulation

Data

storage

Document

production

Data

correction

Original data


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Source Data Automation

Source data automation The process of capturing data at its source with minimal

manual effort

Data are entered directly into the computer


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Transaction Processing Systems

Collects and Store data about transactions

Are designed based on detailed specifications for how thetransactions should be performed and how to control the collection of

specific data in specific data formats and in accordance with rules

and procedures for work done by clerks and customer service agents

A well-designed TPS has back-up and recovery procedures that

minimize disruptions resulting from computer outages

Two types of TPS

Batch Processing Information for individual transaction is gathered but not processed

immediately Real Time Processing

Each transactions is processed immediately


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Point-of-Sale Transaction

Processing SystemCustomers

receiptInventory

database

Management

information

system

Exception

report

Purchases

database

Scanner

Point-of-saletransaction

processing

system

Item

database

UPC and

quantity

Item, quantity,date, time, price

UPC Price

UPC

Quantity,Date,time


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Traditional TPS Order Processing

Order processing Processing an order from entry to delivery,

including traditional accounting transactions

Schematic


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Customer

Order entry/

sales configuration

Shipmentplanning

Routing

Scheduling

Shipment

execution

Invoicing

Finished

product

inventory

Customer order in person or via

mail, phone, EDI, internet

OrdersPlanned

shipments

Planned

shipments

& routes

Pick list

Shipped orders

Inventory status

Products

Invoice


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Request

for

proposal

Sale

Problem, idea,

request for

information

Other

contacts

Market

research

Sales

Marketing

Quality

control

Product

development

Customer

interaction

system

Customer


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Transaction Processing System(TPS)


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Typical Applications of TPS


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A transactionprocessingcycleData collection

Data editing

Data correctionData manipulation

Data storageDocument production


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Management InformationSystems (MIS)


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WHAT IS MIS? The MIS program combines the

fundamental intellectual content of bothComputer Science and BusinessManagement Economics.

MIS is the application of informationtechnology to support the major functionsand activities of either a private sectorbusiness or public sector institution.

These systems provide feedback onorganisational activities and help tosupport managerial decision making.


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In the past, organizations recognized the

importance of managing resources such as

labor, capital, and raw materials.

Today, it is widely accepted that managingthe information resource is very often equally

important. MIS supports the process of

collection, manipulation, storage, distributionand utilization of an organization's

information resources.


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WHAT IS MIS?

The vast majority of informationsystems are developed for and usedby people in functional areas (e.g.,

manufacturing, human resources,accounting, finance and marketing).To develop information systems thataddress the needs of the

organization, MIS professionals mustpossess a solid mix of business andtechnical knowledge.


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They must understand organizational structures,

objectives, operations (including processes and the

flows of data between processes) and the financial

implications related to these factors.

MIS managers and professionals must stay up-to-

date with evolving information technologies and

have a solid foundation of technical skills to select

appropriate technologies and to implementcomputer-based information systems.


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Business information systems(BIS) The interactive relationships between the

information systems and organizations, both

technically and socially, and the business

opportunities and challenges brought about by the

BIS.

This describes information systems used to support

the functional areas of business.


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MIS helps:

to establish relevant and measurable objectives

to monitor results and performances (reach ratios)

to send alerts, in some cases daily, to managers at

each level of the organization, on all deviationsbetween results and pre-established objectives and

budgets.


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Decision-Support Systems(DSS)


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Interaction among Systems


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Summary Different types of IS by organizantional levels

include: Transaction Processing Systems (TPS)

Management Information Systems (MIS),

and Decision Support Systems (DSS) Executive Support Systems (ESS), also

known as Executive Information Systems

(EIS)


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Purposes of InformationSystems


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Types of Operations SupportSystems Transaction Processing Systems

Record and process business transactions

Examples: sales processing, inventory systems, accounting

systems

Process Control Systems Monitor and control physical processes

Example: using sensors to monitor chemical processes in a

petroleum refinery

Enterprise Collaboration Systems Enhance team and workgroup communication

Examples: email, video conferencing


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Two Ways to ProcessTransactions Batch Processing

Accumulate transactions over time and process

periodically

Example: a bank processes all checks received ina batch at night

Online Processing

Process transactions immediately Example: a bank processes an ATM withdrawal

immediately


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Components of an IS


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Office AutomationSystems (OAS)

Computer system, such as word

processing, electronic mail

system, and scheduling system,that is designed to increase the

productivity of data workers in the

office.


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Office AutomationSystems

Facilitates everyday information processing tasksin offices and business organization

Includes a wide range of tools Spreadsheets

Word processors

Presentation packages

Personal database systems and note-taking systems

Help people perform personal record keeping,writing and calculation chores efficiently


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TYPE: Knowledge-level

INPUTS: documents, schedules

PROCESSING: document management,

scheduling, communication

OUTPUTS: documents; schedules

USERS: clerical workers

EXAMPLE: document imaging system


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Decision Support Systems(DSS)

Information system at the

management level of an

organization that combines dataand sophisticated analytical models

or data analysis tools to support

semi-structured and unstructureddecision making.


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TYPE: Management-level

INPUTS: low volume data

PROCESSING: simulations, analysis

OUTPUTS: decision analysis

USERS: professionals, staff managers

DECISION-MAKING: semi-structured

EXAMPLE: sales region analysis


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Characteristics ofDecision-Support Systems

1. DSS offer users flexibility, adaptability, and a

quick response.

2. DSS operate with little or no assistance from

professional programmers.

3. DSS provide support for decisions and

problems whose solutions cannot be

specified in advance.4. DSS use sophisticated data analysis and

modelling tools.


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Decision Process

Decision makers goes through a fairly systematic process.

Act on itAct on it

Review ItReview It

Definethe

Process or Problem

Definethe

Process or Problem

DevelopAlternative

Courses of Action

DevelopAlternative

Courses of ActionSelect

The BestOne

SelectThe Best

One

Intelligence phaseIntelligence phase

Modeling phaseModeling phase

Choice phaseChoice phase

ImplementationImplementation

phasephase


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Decision Support Systems

Decision support system (DSS) is acomputer-based information systemthat combines models and data in anattempt to solve semistructured andunstructured problems with userinvolvement.


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Decision Support Systems - Components

Every DSS consists of at least data

management, user interface, model

management components, and theend users.

A few also contain a knowledge

management component.


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A DSS data management subsystemcontains all the data that flow from severalsources, and are extracted prior to theirentry into a DSS database or a datawarehouse.

A model management subsystemcontains completed models (financial,statistical, management science, or otherquantitative models), and the routines todevelop DSSs applications.


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The user interface covers all aspects of thecommunications between a user and the DSS.

The Users. The person (manager, or thedecision maker) faced with the problem or

decision that the DSS is designed to support A knowledge-based or intelligent subsystem

provides the expertise for solving some aspectsof the problem, or the knowledge that canenhance the operation of the other DSScomponents.


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DSS Process

DataData

ModelModel


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Group Decision Support System(GDSS)

A Group Decision Support System(GDSS), also known as an Electronic

Meeting System or groupware, is

commonly defined as a collection ofsoftware, hardware, and procedures

designed for the automated support of

group work (Dennis, et al., 1988; Kraemer & King,

1988).


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Group Decision SupportSystems

Groups

One-room group whose members are in one place

Virtual group, whose members are in different locations

The DSS methodology was initially designed to

support individual decision makers. However,decision making is frequently a shared process.Where a group may be involved in making thedecision. When a decision-making group is

supported electronically, the support is referredto as a group decision support system (GDSS).


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a DSS whose design, structure, and

usage reflect the way in which people

cooperate to make a particulardecision

or type ofdecision


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an interactive, computer-based system which

facilitates the solution of unstructured

problems by a set of decision makers

working together as a group consisting of a set of software, hardware,

language components, and procedures that

support a group of people engaged in adecision-related meeting


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Characteristics of a GDSS

Special design: Effective communication Groupdecision making

Ease of use Flexibility

Accommodate different perspectives

Anonymous input Individuals names are not exposed

Parallel communication

h i i f


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Characteristics of a GDSS

Decision-making support Delphi approach: Decision makers are scattered around

the globe

Brainstorming: Say things as you think---think out loud

Group consensus approach: The group reaches a

unanimous decision (everybody agrees)

Nominal group technique: Voting

Reduction of negative group behavior A trained meeting facilitator to help with sidetracking

Automated record keeping


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Executive Information (Support) Systems

An executive information system(EIS), also known as an executive

support system (ESS), is atechnology designed in response tothe specific needs of top-level

managers and executives.

E ti S t S t (ESS


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Executive Support Systems (ESSor EIS)

Internal Data TPS/MIS data

Financial data Officesystems Modeling/analysis

ExternalData

Dow Jones Internetnews Standard&

Poors


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ESS - Expansion ESS can be enhanced with:

Multidimensional analysis and presentation Friendly data access User-friendly graphical interface Imaging capabilities Intranet access E-mail Internet access Modeling

ESS goes beyond EIS to include:Analyse support Communications

Office automation Intelligence support

Intelligent ESS saves an executive's time in conducting drill downs,Intelligent ESS saves an executive's time in conducting drill downs,

exceptions, or identifying trends by automating these activitiesexceptions, or identifying trends by automating these activities..


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ISS - Artificial Intelligence

The development of machines that exhibit intelligent characteristics drawsupon several sciences and technologies, ranging from linguistics tomathematics.


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Expert Systems (ES) One type ofISS

Expert systems (ESs) are attempts to mimichuman experts. It is decision-making softwarethat can reach a level of performancecomparable to a human expert in somespecialized and usually narrow problem area.The idea is simple: expertise is transferred froman expert or other source of expertise to the

computer.

Components of E pert S stems


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The transfer of expertise from an expert to a computer and then to the

user involves four activities:

Knowledge acquisition (from experts or other sources)

Knowledge Base -Knowledge representation (organized as

rules or frames in the computer)

Knowledge Engine

Knowledge inferencing is performed in a component called

the inference engine of the ES and results in the

recommendation.

Knowledge transferto the user (the experts knowledge has

been transferred to users).

Components of Expert Systems

(ES)

Expert Systems (ES) Benefits:


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Expert Systems (ES) Benefits:

Expert Systems


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Expert Systems


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Attributes DSS ES

Objective Assist Dm Duplicate Dm

Recommendation About Decision Made By User/System System

Major Orientation Dm T/F Of Expertise

Query Direction Human System System

Data Manipulation Numerical Human Symbolic

Characteristics Of Problem Area Complex/Broad Specific

Types Of Database Factual Knowledge Rules

Reasoning Ability Absent Present

Explanation Limited Total

Learning Capability Absent Present

Nature Of Support Personal Personal & Group