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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