tps 2 module

8/3/2019 TPS 2 Module

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C H A P T E RTransaction ProcessingTransaction Processing

SystemSystem


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Transaction ProcessingTransaction Processing

Bel Air McDonalds


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TPS, MIS, DSS, and AI/ESTransaction Processing Systems

(TPS) Performs routine operations and serve asa foundation for other systems.

The event is recorded by keying it into the

computer system as transactionTransactions The basic business operations such ascustomer orders, purchase orders, receipts,

time cards, invoices, and payroll checks in an

organization.TPS includes:Calculation

Classification

Sorting

Storagesummarization

TPS

MIS

DSS

AI/ES


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Sales/Inventory/Order Transactions

UPC from scanner

Price/description of item

Record sale/date/time.

Update inventory.

Shipping

EDI (Order)


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TPS, MIS, DSS, and AI/ES

TPS

MIS

DSS

AI/ESInformation

Data

Less

Routine

More

More

Decision

support

Less

Less

I/O

More

More

Complex

processing/

analysis

Less


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Batch vs On-line Processing

Batch processing All transactions are accumulated over a period of time and

processed as a single unit. All cheques received at particular

time, say particular day are grouped together and sorted by

the a/c no. and processed in batch.

Typical periods: daily, weekly,

biweekly, monthly, etc.

Examples

PayrollBilling

Transactions


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Batch vs On-line Processing

On-Line Transaction Processing (OLTP)) All transactions are processed immediately, without

delay.

Also called Real-time transaction processing.

Airline

Reservations

Hotel

Reservations

Car

Rentals


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On-line Delayed Transaction Processing

On-Line Delayed Transaction Processing All transactions are entered into the computer when

they occur, but are processed at a later time.

Catalog Orders Deposits


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Management Issues (OLTP)

Uptime

How long can the system be downbefore significant costs are incurred?

Processing Delays / Response Times

How quickly must a transaction be

processed? time

What is the worst online response time

that is acceptable.


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Management Issues (2) Disaster Recovery

What plans are in place to recover lost business

data?

What plans are in place to resume business

processing in case of disaster?

Audit How will you know if transactions are not

processed or are processed incorrectly?


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Simplified View of a TPS

Document

and

Reports

Data Input Processing

Databases

Database Update

Customer orders

Inventory

Purchase Orders

Suppliers

Internal Transactions

Shipped Orders

Purchase Orders

Employee Time Cards

External TransactionsCustomer Orders

Vender Invoices

Customer payments

Documents

Pick listChecks to vendors

Receiving notices

Paychecks

Operational ReportsFinished goods status

Raw Materials

Inventory status

Packing materials

Spare parts


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Source Data Automation

Source Data Automation Capturing data at its source in a form that can be directly entered into the computer. It

does NOT require keyboard input.

Time ClockMark Sense Reader

POS Register POS Register

Magnetic Strip Reader

POS Register

Barcode

ReaderRFID


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Transaction Processing Cycle

Data Collection

Document

Production

Data Storage

Data Correction

Data Editing

Data Manipulation

Original Data

Corrected Data


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Customer

Order Entry

Mail

EDI

Internet

Routing

Scheduling

Shipment Planning

Planned

Shipments

Orde

rs

Shipment

Execution

Picking List

Product

Invoice

Order Processing System


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Order-Processing System

Order Entry System

Captures data needed to process

the customers order.

Sources of data:

Telephone

EDI E-mail

Internet

Salesperson

Sales Configuration System

Ensures that products/services ordered will accomplish customers

objectives and will work well together.

Customer orders a five-station network. Does the customer

have all they need?

Continued


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Shipment Planning System

A system that determines which

open orders will be filled and

from which location they will

be shipped.

Shipment Execution System

A system that coordinates the outflow of all products and goods

from the organization, with the objective of delivering quality

products on time to customers.

Uses a picking list from Shipment Planning.

Continued


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Inventory Control System

For each item picked during Shipment

Execution, inventory is updated.

Invoicing System

Customerinvoices are generated and sent based on records

received from the Shipment Execution System.

Continued


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Continued

Customer Interaction System

Monitors and tracks

each customers

interaction with the

company.

Customer

Other

contacts

Problems,

Ideas,

Information

Market

Research

Sales Marketing QC

R & DCustomer

Interaction Sys.

SaleRequest for

Proposal


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Routing System

Determines the best way to get goods from one location to another.

Scheduling System

Determines the best time to deliver goods and services.


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TPS Summary

TPS SUMMARY A TPS records and processes detailed data necessary to

update records about the business operations of an

organization.

Types of Systems:Order entry

Inventory control

Payroll

Account payable and receivableGeneral ledger

Etc, etc


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Office Automation System


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Office Automation System

OAS are computer based information system thatcollect, process, store and transmit electronic messages,

documents & other forms of communication amongindividuals, work groups and organizations.

Overview of OAS

1. Office publishing systems:

word processing & desktop publishing.

2. Image processing system:

image processing, optical scanning& storage documentmgt and interactive video system.

3. Electronic communication:

Electronic meeting, tele-conference and tele-communicating system


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Office publishing systems

Word processing:

Use of computer system to automatethe transformation of ideas into a

readable form of communication. It

involves manipulating text data to

produce information products in the

form of documents. [letters, memos,

forms & reports]


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Desktop publishing:

Use and develop publishing systems to produce their

own printed materials- own news letters, manual,

broachers and books

Voice store and forward system:

Voice mail or structured verbal response exchanges.It has capability of storage verbal data and

communicating it to another location


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Electronic meeting system:

It involves the video & audio communication to allow

conference and meeting to be held with participants whomay be scattered across the room, a building, a country/aglobe.

Multimedia:

Pertains to a technologies that facilitate the integration oftwo or more types of media such as text, graphics, sound,voice, full motion video or animation in to a computer

based application.

Applications are:

Merchandising real estate industry, sales rep always usethis to create an attention from the prospective customer.

Training train employees at all levels.

Education education tools


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Process of automation

The growth of computer capacity

declining costs of hardware Introduction and rapid development

and deployment of personalcomputers (microcomputers)

introduction of viableimplementations of relationaldatabase technology either viahardware (database machines) orsoftware.


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Initial automation -activities which

involve largely repetitive numeric

calculations, such as payroll, general

ledger, accounts receivable, or accounts

payable. As the organization gains

experience and confidence with the new

technological tools, -"expansion


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systems are usually redesigned and rewritten to use

common software and common databases, new

hardware or software technology, and other

advanced information processing techniques.

database environment and the need to integrate

diverse applications into a planned architecture.


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Corporate Level office automation

This level consists those information and business systems

which are designed for use by all areas of the corporation. These

systems are normally characterized by:

Specific functional area responsibility

Centralized development and maintenance

Requirements that conform to and are constrained by corporate-

wide policies and procedures

Cross-function or cross-business boundary use

Mainframe or Minicomputer residence

Supported by additional, non-automated forms

Additional manual procedures


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Management Information System


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Contemporary Approaches Found In

MIS


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Computer Science: Establishing theories of

computability methods of computation methods of

efficient data storage and access

Managerial science: development of methods for

decision making and management practices

Operation Research: Mathematical techniques foroptimization of selected parameters of organization

covering transportation, inventory control and

transportation costs.


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Staffspecialists

Salesrepresentatives

Productionpeople

others

With in theorganization

Customers

Distributors Competitors

Consultants

Govt.

Financialinstitutions

External toorganization

Management information systems for decision

making

Management

information

system

Decisionmaking

Managers


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MIS

A management is used to transform data into

useful information as needed to support

managerial decision making with structured

decisions which are those that are based on

predictable patterns of activity.

The typical MIS is based on fourmajor

components


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1. Data gathering

2. Data Entry 3. Data Transmission

4. Information Utilization


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People

Data

Software

Hardware

CommunicationNetwork Resources and

Technologies

Basic components of MIS

InformationSystem

To,

Collect

Transform

Disseminateinformation inan org.To,

Performactivities:

Input

Process

Output

Storage

USE


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Scope of MIS

To provide managerial end users with

information products that support mush of

their day to day decision making needs.

To provide variety of reports and displays

to management

To provide information on the contents ofthe information products specified in

advance by managers

To retrieve information (TPS)


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To provide requisite information support

for managerial function with in the

organizations.

To make available, right information at

right time at lower cost.

To ensure that wrong and unwantedinformation is not generated, condition of

data overload is avoided.

Objectives Of MIS


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MIS is management oriented

Management directed Integrated system (5 Ms)

Avoids duplication of data storage

Common data flow

Heavy planning element

Flexibility and case of use

Computerisation

Characteristics of MIS


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Planning

Organising controlling

MIS support Managers


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Manual MIS and Computerized MIS

(based on usage of computers)

Personal MIS, Work group MIS and

Enterprise MIS(based on no. of users)

operating Elements, Decision Support,

Management activities andOrganizational functions (based on

structure of MIS)

Classification of MIS


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Information System

Data Input

OutputSystem

Instructions andprocedures

Recordsand files


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Is oldest, people receive input data by seeing or

hearing them, these data are store in brain which

also acts as a control and logic unit. Out put interms of oral or written communication.

Computer based information system:

It uses computer s/w, h/w to perform itsinformation processing.

Manual information system


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Personal MIS single user as a user

as a operator

as a developerWork group MIS no. of users may be many, but less

than 25.

Enterprise MIS - no. of users may be many more than100. it can be used in organizations.

Need for MIS

Mis FunctionsINPUT PROCESS OUTPUT


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Architecture of MIS Application


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Is capability of some management, decision support &executive information systems that supports interactive

examination & manipulation of large amounts of data from

many perspectives.

Basic analytical operations

1. ConsolidationAggregation of data (complex group

involving inter related data)

2. Drill Down can go in reverse directions & automatically

displays detailed data that comprise of consolidated data.

Online Analytical Processing


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Reports

Periodicscheduled

data

Demandreports

Pushreporting

Exceptionreports

Information Products to Managers


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Structured programmabledecisions

Un-structured nonprogrammable decisions

Strategic planning

Management controland tactical planning

Operational control

Physical components

Processing functions

Outputs for users

Sales and marketing

Production

Logistics

Personnel

Finance and accounting

Information processing

Top management OperationalFunctions

OperatingElements

Decision

Support forDecisionMaking

ManagementActivities

Information Structure


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Physical components -

Processing functions Transaction docs are: Reports

Inquiry

Responses - provides 4 types of information there are

Monitoring information Problem finding information

Action information

Decision support information.

Operating Elements


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Process Transaction

Process oftransaction

Transaction

Documents

Outputs for users -


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Decision Support for Decision

Making1. Structured

2. Unstructure

d


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Information requirements at different levels

SupportCompetitiveAdvantage

SupportBusiness

Decision Making

Support ofBusiness Processes and Operations


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1. Information system for strategic planning

Mission Goals

Strategies

Policies

2. Information system for Management Control -

Measuring performance

Decide on control actions

Formulate new decision rules

Allocate resources

3. Information system for operation Control how to carryout specific task in time.

Management Activities


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Sales and marketing

Production

Logistics

Personnel

Finance and accounting

Information processing

Top management

Operational Functions


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Organizational functions


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Decision Support

Systems


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MEANING OF DSS

DSS are an application of Herbert Simon Model. The model has three

phases, viz. Intelligence, Design and Choice. The DSS basically helps

the information system in the intelligence phase where the objective is

to identify the problem and then go to the design phase for solution.

DSS is an important application area, which are information systems

designed to assist executives in decision making through an exploration

of decision consequences. DSS are powerful, interactive planning toolsthat use data and models to explore the consequences of decisions.


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Intelligence find or recognize a

problem, need, or opportunity.

Design consider ways to solve the

problem, fill the need, or take

advantage of an opportunity.

Choice examine and weigh the merits

of each solution, estimate the

consequences of each, and choose

the best one.

Implementation carry out the chosen

solution, monitor the results, and

make adjustments as necessary.


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StrategicManagement

TacticalManagement

OperationalManagement

Decision Characteristics

Unstructured

Semi-

structured

Structured


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Types ofDecisionsTypes ofDecisions

Structured decision -processes a certain kind of informationin a specified way so that you will always get the right

answer.

Non-structured decision - one for which there may beseveral right answers, and there is no precise way to get a

right answer.


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DEFINITIONS OF DSS

Interactive computer based system, which help decision-makers utilize

data and models to solve unstructured problems.

-Scott Morton

DSS is an interactive computer based system which facilitates thesolution ofunstructured problems.

Decision support system (DSS) - highly flexible and interactive IT

system that is designed to support decision making when the problem isnot structured


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Decision Support System Assists decision makers through ad hoc queries and models.

Externa

l

Databas

e

Database ordatawarehou

se

Models

Problemsolving

subsystem

Interface

C t f D i i S t S tC t f D i i S t S t


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Components of a Decision Support SystemComponents of a Decision Support System


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The database and its management

[DBMS]-Is a collection of inter-related data stored together with aminimum of redundancy to serve multiple applications, with data stored so

that it is independent of the computer program that uses it and the type of

hardware on which it is stored.

The model base and its management Pre written computer programs or packages

The hardware Mainframe Computer

The user system interface Languages

Devices

Components of a Decision Support SystemComponents of a Decision Support System

CCOMPONENTSOMPONENTS OFOF AA DDECISIONECISION SSUPPORTUPPORT SSYSTEMYSTEM


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DIALOGUE MANAGEMENT:

It has three subsystem. The user interface subsystem manages the physical userinterface. It controls the appearance if the screen accepts input from the user and

displays the results.

The dialogue control subsystem maintains a processing context with the user.

The request translator is to translate the user command into actions for the model

management or data management components into a format and vocabulary

understandable by the user.

MODEL MANAGEMENT

The command processor receives the commands from the dialogue management

components and delivers those commands from the dialogue management componentsand those commands to either the model base management system or the model

execution system.

DBMS: collection of inter-related data stored together with a minimum of redundancy

to serve multiple applications, with data stored so that it is independent of the computer

program that uses it and the type of hardware on which it is stored.

CCOMPONENTSOMPONENTS OFOF AADDECISIONECISIONSSUPPORTUPPORTSSYSTEMYSTEM

PROGRAMPROGRAM


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It is a software system that generates new routines and reports,

model updates and changes and data manipulation. It is capable of

inter-relating models with the appropriate linkages through the

database

Model Base Management System


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CHARACTERISTICS OF DSS

Ability to support the solution of complex problems:

Fast response to unexpected situations that result in changed inputs:

Designed to help support decisions that are formulated as semi-

structured, complex problems:

May be constructed to support one time decision

DSS is typically designed for either a particular decision-maker or agroup of decision makers:

Allows the decision maker to interact in a natural manner due to the

careful design of the interface.

DSS generator (software) can be used: rather than building a specific

DSS from scratch, a system analyst can use a package of interrelatedhardware and a software called DSS generator.


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The other characteristics are:

Cost savings Improving managerial effectiveness

Extensive range of support to management

Support of individual/group

Graphical display

Designed and run by managers; incorporated data and models

Contains a database drawn from internal files/external environment

Concerned with a small area of managerial activity or a small part of a

large problems.

Use and control rests with the user, not with the informationmanagement department.

Flexible and adaptable to changes in the external environment or in the

executive style

Support, rather than replace, managerial judgment.

TYPES OF DSS


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System Input source System Hardware User

Inquiry DatabaseConventional

Query system PC server andclients

Clerks,assistants

Data Analysis Database and

other files

Packages of

Data

Processing

systems

Mainframes or

servers, PCs

Operations

managers

Information

analysis

Processed data

files

Analysis

programs and

use of simple

models

Mainframe, mini

super, mini,

servers, clients

PC

Middle level

managers

Accounting ROI Transactions

Master files anddatabase

Transactions

processingsystems

Mini,

mainframe,client/ servers

Middle and top

management

Model Based Inventory

database and

external data

Development of

Operations

Research or

Business

models

Mainframe,

mini, client/

server

Middle and top

management


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DSS Advantages

Designed to facilitate solving complex problems; forgroup decision making.

Uses 3 types of management like dialog management ,database management models base management to

solve a specific problems.Supports semi structured and unstructured decisionmaking

Provides users with a flexible set of tools andcapabilities for analyzing important blocks of data

It does not give a final solution to a complex problembut analyses; the DSS users take the final decision

Provides interactive information support to managersand business professionals for decision makingprocess.


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DSS Disadvantages

DSS are very costly

DSS are used only for specific

applications

DSS system will not give the ultimate

solutions


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GDSS Group DSS

It is an interactive, computer based system that facilitates solution

of unstructured problems by a set of decision makers working

together as a group.

For limited ad hoc, and the intermittent group DSS, when the

members can meet in the same physical location, a decision room

environment can be recommended, here, group members each

have a computer station that they use to communicate with one

another, to obtain stored data and to alter the display on the publicstation.


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GDSS Group DSS

The members can be geographically distributed, teleconferences /video conferences can be recommended. Here, different meeting rooms

are connected with video displays.

DSS

Mode

ls

DSS

Databas

e

DSS

Processor

Group

User

Dialogue


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DSS Tools

DSS

Generator

DSS for a Specific

Application

Specific application can be constructed with a DSS generator,

infrequently supported by special DSS tools.DSS GENERATOR

A DSS Generator is a package of software used to build a specific DSS

application.

Excel, Lotus 1-2-3

DSS TOOLS

The construction of a DSS application and/or the creation of a DSS

generator is facilitated by specific software elements called DSS tools. These

tools include:

Colour graphics, special editors, random number generators, software


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Collaborationsystem software

that is designedspecifically toimprove theperformance of

teams bysupporting thesharing and flow ofinformation.

Collaboration System


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Expert Systems

Expert system, or knowledge-based system - artificialintelligence system that applies reasoning capabilities

to reach a conclusion.

An expert system is a computer based information

system in which knowledge is represented in data, in

which the processing of the knowledge is directed,

primarily by computer programs


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Components of an Expert System

Knowledge Acquisition:Human experts, text books,

database Special research

reports and the user

Knowledge Base:Informal

judgmental knowledge of an

application area.Interface Engine:Applies a

knowledge in systematic way

Explanation Module:Justifier

user interface:

Communication between UserManager and Computer

S t


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SystemsThe Expert System

KnowledgeBase

User Workstation

ExpertAdvice User

InterfacePrograms

InferenceEngine

Program

Expert System Development

Workstation

Knowledge

EngineeringKnowledgeAcquisition

Program

Expert and/orKnowledge Engineer

E S


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Expert Systems

WhatExpert Systems Can and CantDo

An expert system can:

Reduce errors

Improve customer service Reduce costs

An expert system cant:

Use common sense

Automate all processes

On Your Own

Traffic Lights

Revisited(p. 199)(p. 199)

E ti I f ti S t


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Executive Information System

EIS are management information systems

tailored to benefit the strategic

information needs of top management.

ESS ( Executive Support System):

Summarise and present data at the highest

levels of aggregation. Usually, they

involve presenting reports in standardformats and they often involve graphics.


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Effective EISFeatures

An easy touse/ easy to

learn

graphicaluser interface

On request,drill-down

capability toreach

informationfor further

details

On demandfinancial andother ratios

and indicatorsthat reflects

org strengths,weakness

Easy to use/but

sophisticatedtools toallow

navigationStatisticalAnalysis

Tools

Ability torespond to

Ad-hocqueries andsensitivityanalysis

Access toexternal data

pools

Ability tosolve diverse

businessproblems