Transaction Processing

System (TPS)
A transaction is a business event that
generates or modifies data stored in an
information system.
A TPS collects and stores data about
transactions and sometimes controls
decisions made as part of a transaction.
A TPS focuses on record keeping and
control of repetitive clerical processes.
(Source: Alter, 1999)

TPS (Contd.)
Design of a TPS is based on
execution details of the transactions;
data content and format; and
rules and policies to be enforced.
TPSs are capable of
enforcing rules and work procedures;
detecting errors, such as missing data,
invalid data, and inconsistent data; and
automating certain decision-making
functions.
(Source: Alter, 1999)
TPS (Contd.)
Batch Processing: Information on
individual transactions is collected and
stored. Based on a schedule or number
accumulated the transactions are
processed later to update the database.
Examples are processing of checks and other
paper forms, generation of paychecks, and
weekend deposits into ATMs.
Problems - error correction & data currency.
(Source: Alter, 1999)

TPS (Contd.)
Real-time Processing: Each transaction is
processed immediately. An advantage is
immediate error correction.
Examples are airline reservation systems and
bursar/bank systems.
Characterized by quick response and high
availability.

(Source: Alter, 1999)

ERP System - a TPS?
An ERP system encompasses transaction
processing done in various functional
areas of an enterprise.
Actually an ERP system is a hybrid system
that has characteristics of many of the
individual information system types
including the TPS.

(Source: Alter, 1999)

Management Information
System (MIS)
MISs generate summary information for
monitoring performance, maintaining
coordination, and providing background
about the organizations operation.
Users are both managers and the
employees who receive feedback about
performance indicators.
MISs extract and summarize data from
TPSs.
(Source: Alter, 1999)

MIS (Contd.)
Typically provide pre-specified reports on
a scheduled basis.
MIS provides information; people decide
how to improve performance.
Executive Information Systems (EISs)
take MISs to the next level.

(Source: Alter, 1999)
Executive Information
System (EIS)
EISs offer a highly interactive system that
provides managers and executives flexible
access to information for monitoring
operating results and general business
conditions.
Executives can drill down to understand
specific items of concern in more detail.
Data is replenished periodically from
internal and external sources.
(Source: Alter, 1999)

EIS (Contd.)
Typical characteristics of EISs are
user-friendly interfaces;
variety of formats (tables, graphs, etc.);
triggers for exceptional conditions;
multiple levels of detail;and
customizable reports.
EISs help executives find the information
they need whenever they need it and in
whatever form is most useful.
(Source: Alter, 1999)


Decision Support System
(DSS)
A DSS is an interactive IS that provides
information, models, and data
manipulation tools to help make decisions
in semi-structured and unstructured
situations.
In contrast to MIS, a DSS supports
managers and professionals doing largely
analytical work in less structured
situations.
(Source: Alter, 1999)

DSS (Contd.)
The traditional DSS approach includes
interactive problem solving; direct use of
models; user-controllable methods for
displaying and analyzing data; and
formulating and evaluating alternatives.
Examples range from spreadsheets to
customized simulation or optimization
models focusing on specific situations.
(Source: Alter, 1999)



DSS (Contd.)
DSSs support repetitive decision making
by structuring the decision to some extent
and defining procedures and formats.
An example of the repetitive case is the
use of a DSS by insurance agents to help
customers choose the right insurance
policy - options, cost and benefits.
(Source: Alter, 1999)


DSS (Contd.)
DSSs support non-repetitive decision
making by providing data, models,
analytical tools, and interface methods.
An example is a system that helps
marketing managers evaluate alternative
marketing plans and track results. Data
includes internal sales results and external
market research databases.
(Source: Alter, 1999)
New Approaches to DSS
Online Analytical Processing (OLAP) and data
mining.
OLAP is the use of online data analysis tools
to explore large transaction databases.
Data mining is the use of data analysis tools
to find patterns in large transaction
databases.
(Source: Alter, 1999)
Data Mining (Contd.)
Examples are customer buying patterns in
grocery stores and statistical profiles of
customers who are likely to switch long-
distance carriers.

One of the difficulties in data mining is
the problem of differentiating between
meaningful and spurious patterns.
(Source: Alter, 1999)
Execution Systems
These systems directly support people
doing the value-added work in an
organization.
Examples are systems that help plastic
surgeons design operations and show
likely results to their patients.
Expert or knowledge-based systems are
one type of execution systems.
(Source: Alter, 1999)
Expert Systems
Expert systems support the intellectual
work of professionals engaged in design,
diagnosis, or evaluation of complex
situations requiring expert knowledge in a
well-defined area.
Common applications are medical
diagnosis, troubleshooting, chemical
analysis, data interpretation, etc.
(Source: Alter, 1999)
Office Automation Systems
An OAS facilitates everyday information
processing tasks in offices and business
organizations. They include a wide array
of productivity tools.
Spreadsheets
Word processors, desktop publishing tools
Presentation packages
Personal database systems
(Source: Alter, 1999)

Communication Systems
The broad categories of communication
systems are
Teleconferencing
Messaging systems - e-mail, v-mail, and fax
Groupware (e.g. Lotus Notes)
Intranets and extranets
Knowledge management systems
(Source: Alter, 1999)