TPS system

A TPS of English Transaction Processing System is a type of information system whose

function is the administration and management of data produced in a transaction.

A transaction is an interaction between two or more parties where an exchange of goods or

elements of value (information, money, etc.) occurs, thanks to the importance of the correct
handling of the good with which this process is being treated, to comply with a set of
characteristics that define and determine a TPS at the same time, this set of characteristics
is called ACID, which comes from the acronym:

a) Atomicity: The flow and exchange of information in each operation must be atomic, this
means that: either the operation is completed and fully processed or nothing happens;
Therefore, in the event of any error or eventuality that does not allow the system to
complete the processing and data handling of an operation, it must be capable of returning
changes and going back to the state it had before the operation was started. Example: A
withdrawal at an ATM where the system must both deduct the requested amount from the
database and provide the customer with the corresponding money, both steps must be
carried out simultaneously to prevent any error from occurring cases where either the
money is discounted without having supplied it to the customer or the money was supplied
without having its amount discounted from the database.

b) Consistency: Each operation must be carried out through rules that ensure that the
integrity of the transaction or the data handled in it is not violated. The system must be able
to identify border or invalid cases in transactions and avoid their execution. Example:
Following the previous example, the cashier's system should be able to avoid processing
withdrawals where a negative amount is requested or one greater than the one registered in
the database for that client, thus avoiding impossible circumstances and invalid data that
break the integrity of the rules. the database.

c) Isolation: Each operation within a transaction must be independent and be carried out
separately without one affecting the other. The system must be able to correctly prioritize
each operation and resolve each one sequentially or at least simulate an independent
execution. Following with the example of the cashier, if a person is withdrawing from an
account an amount greater than the one registered and at the same time as another is
depositing an amount that compensates the withdrawal, the system must be able to or give
higher priority to the deposit operation and solve it first or if the withdrawal has priority, show
an error that you are taking more than you have and then add the amount deposited to the
registered amount

d) Durability: Once an operation has been carried out, its effect must be persistent over
time, this means that once the system has processed the information correctly (following the
previous characteristics) and updated the database, these changes should be kept without
the ability to undo changes or lose them to errors or failures. In the example of the cashier
when the person withdraws, the new amount of money available (which was the previous
amount minus the withdrawal), must be kept in the database until another operation that
has been processed updates that value. If the person in the immediate future regrets the
withdrawal, he cannot undo the changes, and the withdrawal operation carried out will
remain in the record, in case he wants to return the money and that his registered amount
returns to the previous value of the registration, you will have to make a new deposit
transaction.

Characteristics of the Tps:

a) Reliability: All TPS must be able to simultaneously handle thousands of operations that
use the same information with a null or low margin of error, since a failure in the system can
have repercussions in the paralysis of the organization or even in a breakdown Of the
same.

b) Standardization or Inflexibility: Each transaction must be executed following pre-

established patterns that must be maintained each time the transaction is carried out,
regardless of the type of circumstances. Example: If in the withdrawal operation a certain
user were once allowed to withdraw their money without such transaction being recorded,
this may cause confusion when managing their account or checking for calculation errors.

c) Controlled operations: The TPS must be implemented following rigorous security and
control standards both in its use and in the handling of operations, in order to prevent
sabotage of the system and information. Among the controls to be followed are:

 They must keep a data record of each transaction and of each operation carried out within
it.

 Back up the information provided, so that it is recoverable from any error.

 Have restricted access, being able to identify valid users and the operations available to
them.

Comply with ACID standard.

Advantages and disadvantages

 -Advantage:

 to. They allow managing large volumes of information effectively and efficiently in real time.

second. They allow to carry out a control in the operations of a transaction avoiding
unwanted results.

-Disadvantages:

 to. Due to the importance of the data handled by a TPS, a system crash can cause
paralysis of the organizations that use them.

second. Any invalid alteration in the information handled by the TPS can cause chaotic
situations that lead to the bankruptcy or destruction of the organizations that they use and
that are linked to them.
Management Information System (MIS)

Management information systems (M.I.S) are a collection of information systems that

interact with each other and that provide information for both operations and management
needs in the company. They also make up an extensive and coordinated set of information
and rationally integrated subsystems that transform data and information in a variety of
ways to fully meet the requirements of administrators.

An information system for the private administration may have various technical capabilities.
Together, these contradict what is commonly heard about: a computer is just a high-
capacity adder or calculator. You can't do anything different, it just does it faster. Among the
capabilities of a management information system we have:

1) Batch transaction processing - Most organizations handle a large number and variety of
transactions. For example, marketing activity can generate cash and credit sales, common
order returns, etc., each for hundreds of different products. In addition, many types of
processing are performed that are only indirectly related to sales activity.

2) Single transaction processing: another batch processing alternative is ONE transaction,

in which each transaction enters the computer system alone. In general, single transaction
batch processing is used when speeding up the speed of processing provides significant
sales such as early delivery of sold merchandise

3) Data communication and message switching: Two or more computer systems can be
linked by telephone lines or other transmission method to send / receive transaction data,
log files and / or programs. Message switching uses this computer communication network.
Message switching involves an "email" system, whereby administrators in an organization
send letters or messages to administrators elsewhere.

4) Data entry and remote file updating: using data communication systems allows
transactions to be captured where they occur and transmit them to another location for
processing.

Information they handle:

 The type of information they handle are large volumes of data that are processed in many
different ways, among them we have: resources and information on personnel
management, project management, business training and the necessary data. This
influences decision making in the company, which is crucial if you want to survive in the
business marketing arena.

 Organizations that use them:

 The management information system has its application in the business field, more
specifically in small and medium industries (SMEs), to help in the creation of a successful
environment in times of crisis, since by implementing it, it makes the company arise and
respond appropriately to marketing needs and adapt to the changes that they generate.
 Areas or Functions that support organizations:
 -Planning -Control -Organization

The management information system has certain advantages and disadvantages that will
be mentioned below:

 Benefits:

It can handle a huge flow of data and perform a wide range of procedures that are useful in
developing the marketing plan for the company itself.

It uses advanced technology resources (software and hardware) making the system much
faster and more efficient.

Disadvantages:

 It may be that by gaining speed and efficiency with hardware and software, the cost will
also increase, since these elements, when acquired or created by the company, have an
associated cost that depends on their functionality, making them faster. and effective will be
more expensive, due to the complexity that is present when wanting to obtain satisfactory
results.

Decision Support System (DSS)

Decision Support Systems (DSS) are those systems aimed at helping decision-making for
those who face this task (in English called decision makers). Obviously, DSS are automatic
and computerized (since they fulfill the mission of Information Systems) and also tend to be
"interactive, flexible and adaptable.

The essential purpose of a DSS is to simulate solutions, in order to provide alternatives to

the decisions that are made to certain problems. Given the growing demand for information
in current times, and proportionally to the computing capacity of the machines, it is useful to
think that these systems provide a great solution when making decisions with many
alternatives and that they require many mathematical calculations. .

Information they handle

The information that is handled in these systems is the one that resides in the database,
whose origin can be internal (from the company) or external (outside the company). This
information can come in a disorganized way and to follow a strict order that can be
processed by the system it must be organized according to what is called the Simon Model.

Organizations Using DSS.

 The organizations or industries in which DSS is most widely used are the following:

 - Business management and planning.

 - Medical and health care. - Military.
- Market prediction, evolution and growth.
- Geographic information systems.
 - Resolution of criminal cases

Advantages and disadvantages:

 After resorting to different investigations, web pages [6] [7] and bibliographies, we have
found that the benefits that DSS can give are the following:

1) Time savings: They reduce decision-making time cycles for an organization, which
increases employee productivity and improves results.

2) Improves efficiency: Decisions obtained through DSS are usually better than if said
system had not been used, since it makes a better analysis of the input data.

3) Increases interpersonal communication: Improves communication between employees of

the same level, and the management of the company and its employees.
4) Provides competitive advantage: Obviously it provides a competitive advantage between
the organization that uses DSS and the one that does not use it.
5) Helps reduce costs: Making decisions quickly reduces costs when it comes to tackling
problems faster and more pre-empted.
6) High satisfaction for those who make decisions: It increases the satisfaction for those
who make decisions within the company, and reduces frustrations due to wrong or poorly
made decisions, which in turn increases confidence and motivation with the company.
7) Supports learning: It allows learning to those who manage the decisions of the system
with the management of new concepts, and there is in fact a better understanding of the
operation of the business and decision making.

8) Greater organizational control: There is a better understanding of business operations by

company management, given the functions that the DSS allows to perform (such as
monitoring some employees and making inquiries).

 Some of the disadvantages that could be inferred or collected from the same bibliography
and others [8] were the following:

1) Exaggeration in decision-making: It is important to know in which situations the DSS

should be used and what social, political and other factors affect decisions, in order for the
decision-making to be correct, since the DSS it is oriented to make rational decisions.
2) Assumption of Relevance: It is often thought that DSS is the center of solutions to
problems, although it is not a panacea. Caution must be exercised when deciding when to
use this system and when not to.
3) Transfer of power: The feeling that decisions are being delegated to a machine will
always be present.
4) Unforeseen effects: Some unforeseen effects can happen when the system is
overloaded with information, however apparently many of these effects tend to have almost
immediate solutions.
5) Obscuring responsibility: People who work with DSS often tend to divert their
responsibilities to the decisions made by the system, even when the system is only an
intermediary and it is the managers or system administrators who are really making the
mistake.
6) false belief in objectivity: Those who use DSS tend to think that their decisions are taking
an objective or rational course, just because they are using said system.

Executive Support System (ESS)

Currently companies have found it necessary to join a struggle for survival in the external
environment, which in this case is the market. Large numbers of organizations, whether
national or international, are in constant competition either to optimize their resources, enter
other markets, obtain raw materials, among others. These entities are obliged to improve
their work structure, plans to optimize their operation in order to achieve an advantage over
their opponents.

The ESS gather and manage many information functions related to financial, administrative,
office tasks and any other area that is required by the executive.

Types of systems:
 Within the scope of an organization, information ISs can be of several types, among them
are:
Transaction Processing Systems (TPS)
Knowledge Work Systems (KWS)
Office Systems (OAS)
Management information systems (MIS)
Group Decision Support Systems (GDSS)
Executive Support Systems (ESS)
 
Support to define an overview: One of the key roles of a CEO is to provide a broad view of
the entire organization. This vision includes the organization's major production line and
service line, types of businesses that are currently run and those that could be supported in
the future, and their primary goals.

Structure, Elements and Components:

 The Executive Support Systems are made up mainly of software developed to work
together with the infrastructure and applications that generate important information within
the organization. The tool must be able to create easy-to-read reports, information analysis,
graphs, all of this in real time. Expose information intuitively so administrators can track
more effectively. They must also have the ability to filter relevant data, such as those
provided by the organization or those obtained from the medium, that is, external data from
the competition at a local and global level (internet).
Information they handle:
 Data referring to the corporation.
 Trend reports.
 Bills.
Cost accounting.
 Staff Administration.
 Structuring of activities.
Trade information.
 Marketing reports.
 Production reports.
 Strategic plans
 possible crises.

 Organizations using ESS

Industry: Control of data in the production of raw materials, comparison of product quality
with the competition, updating market prices, economic trend and prediction of possible
crises.

Medicine: Companies such as MEDITECH: (Company that provides software solutions that
are integrated into the structure of companies to satisfy needs. It is one of the leading
companies in the design of information systems in charge of organizing data, analysis,
reporting, decision making in the field of health care. Its systems apply from doctor's offices,
clinics to hospitals.)

Government Institutions: (Cambridge Systematics uses an ESS for transport planning

processes)

Finance: (Royal Bank of Canada): Massive database management, effective and efficient
calculations of account balances, help in obtaining information on possible investments,
banking statistics.
own and those of the competition, generate graphs and report that help detect trends in the
commercial sphere.

Advantages and disadvantages:

 Benefits:

SSEs help managers and executives analyze, process, and highlight trends.

 Facilitates monitoring of organizational performance

Helps identify strategic problems and opportunities

Increases range of control by senior management

It allows to present data schemas at different levels of abstraction

Provide graphs for easy analysis

Allows decision-making to be decentralized

Information filtering

You don't need a lot of computer science knowledge to use these applications.

 Disadvantages:

Difficulty in database maintenance

High computational computing capacity

Tight security systems - Only trained personnel (senior executives) might find these tools
useful.

Consumes time in preparing and generating an appropriate decision.

ERP system

The term ERP refers to Enterprise Resource Planning, which means "enterprise resource
planning system." These programs take care of different internal operations of a company,
from production to distribution or even human resources.
ERP systems represent a great investment for companies. According to a 2013 survey by
Panorama Consulting, 40% of companies that purchase an ERP notice an increase in
productivity. Request the ERP Guide to find the differences between the most popular ERP
systems on the market, their price and a review of ERP providers.
Advantages of an ERP system
The main advantages of these systems are:
Automation of company processes.
Availability of company information on the same platform.
Integration of the different databases of a company in a single program.

Saving time and costs.
In addition, ERPs offer integration with BI or Business Intelligence solutions, allowing you to
report on the status of your company directly with data from the ERP system. This offers a
level of detailed and up-to-date knowledge of the state of the company that is essential
when analyzing and improving internal processes such as marketing and sales,
organization or other key aspects of a company.

Disadvantages of an ERP system

The most common drawback is usually the cost of the ERP software. This is usually due to
the level of customization that an ERP system needs to meet the needs of the company: the
higher the level of customization, the higher the price. In addition, some of the costs that an
ERP entails may appear after its installation and acquisition, which is called hidden costs.
You can find a detailed description of these hidden costs, along with examples and actual
budget estimates for the most used ERPs in the ERP Guide.
Another downside to be aware of when choosing an ERP package is implementation. In
some cases, it may take too long to install, the hardware required to operate, and prepare
your infrastructure. This can cause delays in the internal workings of your business that can
cause losses. However, there are systems in the cloud that can prevent this type of
inconvenience, by not having to be physically implemented in the company.

What companies need an ERP system?

An ERP system is suitable for all types of companies, both multinationals and SMEs. In
addition, thanks to the different customizable modules, any company, regardless of the
different processes it has or the sector to which it belongs, can customize its own ERP.
There are providers that specialize in the implementation of certain ERPs, either by product
or sector, achieving better results after the acquisition of the ERP. See the ERP Guide and
you will find a review of ERP package providers.
The purpose of an ERP software is to support the company's customers, give quick
response times to their problems, as well as efficient information management that allows
decision-making and minimizes costs.

ERP-s work in all types of companies and their selection depends on factors such as the
size of the company, the type of company, processes, resources, etc ...
Today the market offers 2 large groups of software solutions for the needs of companies.

Advantages of implementing an ERP in a company

Integration into a single platform or application
With an ERP, a company can have all its processes or files in the same system, so that it
can access them at the same time and from the same place.
Automation of processes in the company
With a good ERP many processes can be managed automatically. For example, the
purchase of products once their reserves are dwindling, the shipment of some orders that
maintain a certain stability, etc. Anything that involves a pattern of behavior can be
programmed to relieve employees of this burden.
Real-time company information
Decision-making will always be governed by the information that is available at all times. An
ERP can show the real-time information of the company, so that the possibilities of action
can be considered and which of the different options is the most successful.
The platform fits the business
Whatever a business, an ERP can be adapted to its operation and development. The data
can be dumped into the program with ease. Therefore, it can be used by any type of
company.

Cost reduction
Not only are many work times optimized, but quite a few tasks that are usually performed
also disappear. In addition, it is a very efficient aid for saving, since you can have a more or
less global vision of the general operation of the company.
Better quality of analysis
Precisely because of its integrating nature, you can see the complete information of each
detail or element of the company. And, therefore, have a more accurate and complete
vision.

Disadvantages of implementing an ERP in a company

Initial cost
It is an efficient program and, as such, it is essential to make a considerable outlay of
money at first.
Preparation of workers
Everyone in the company, in one way or another, will end up having some kind of contact
with the ERP. This forces all of them to be trained in the correct way to be able to use it. It
can lead to production delays.

CRMS system

A CRM is a customer relationship management solution, normally aimed at managing three

basic areas: commercial management, marketing, and after-sales or customer service.

The use of a CRM is part of a customer-oriented strategy in which all actions have the
ultimate goal of improving service and relationships with potential customers. So what is
CRM? The concept of CRM is much more than an abbreviation for customer relationship
management. It is a term that may well apply to methodologies or specific software to help
organize links.

The customer service functions of a CRM tool also enhance customer loyalty and
satisfaction, which has a very positive impact in terms of recurring and cross-sales.

A CRM platform makes it easier to direct and manage customer acquisition and loyalty
campaigns. Thanks to the CRM, you can control the set of actions carried out on customers
or potential customers, and manage commercial actions from a detailed dashboard.

CRM software, by definition, allows you to share and maximize the knowledge of a given
customer and in this way understand their needs and anticipate them. By definition, the
CRM collects all the information on business transactions, maintaining a detailed history.
A CRM solution makes it easier to direct and manage customer acquisition and loyalty
campaigns. Thanks to the CRM you can control the set of actions carried out on customers
or potential customers, and manage commercial actions from a detailed dashboard.

Companies that use CRM solutions generate more sales opportunities, streamlining
management, with budgets updated in real time and optimized sales processes. In the
same way, companies that use CRM can make better segmentations, and have the
information for a superior customer service and after-sales service.

Supply chain Management Software

Supply chain management software (SCMS) is the software tool used to execute supply
chain transactions, manage supplier relationships, and control associated business
processes.1
While the functionality in such systems can often be extensive, it commonly includes
[citation needed]:
1.Processing customer requirements
2.Purchase order processing
3.Sales and distributions
4. Inventory management
5.Reception of goods and warehouse management
6.Supplier / Sourcing Management

A requirement of many SCMS often includes forecasting. These tools often attempt to
balance the disparity between supply and demand by improving business processes and
using algorithms and consumption analytics to better plan for future needs. The SCMS also
often includes integration technology that enables organizations to trade electronically with
supply chain partners.3
Also, close integration with the financial system is essential for most companies that are
involved in supply chain management. Therefore, most of the software systems available
today are integrated with finance, accounts payable, accounts receivable, and the General
Ledger. This makes accounting management easier for organizations. A tightly integrated
purchasing and sales process enables organizations to manage their daily activities with
less effort.

Today's leading-edge SCM systems are comprehensive product suites that help companies
manage and optimize supply chains as a complete ecosystem. As fully integrated cloud
technologies, these systems allow 100% visibility throughout the supply chain and increase
or decrease the ability to react to market reality. With the help of a modern demand-driven
supply chain, you can meet the challenges of increased customer expectations, shorter
product lifecycles, and changing demand.

Knowledge management system

refers to computer systems to manage knowledge in organizations, which support the

creation, capture, storage and distribution of information. These systems are another part of
the Knowledge Management strategy within organizations.

The idea of a KM system is to allow employees to have full access to the organization's
documentation, information sources, and solutions. The typical example is the company
where an engineer knows the compositions of metals that could reduce the noise level in
engines. By sharing this information, it could help to design more effective engines or it
could help and give ideas to other components of the organization to design better
equipment or improve products. Another example could be the commercial department that
needs information about customers and can consult the information collected by other
colleagues in this regard. Or the systems department that has all its computerized
documentation and administration manuals and it is easy to find solutions to problems
previously presented in said information.

A KM system could include the following:

Document technology that allows the creation, management and sharing of documents with
a specific format (such as Lotus Notes, document management Web portals, distributed
databases).
Ontology / taxonomy: similar to documentation technologies to create a system of
terminologies that are used to summarize, organize or classify documents (for example
Author, Subject, Organization, etc).
Provide network maps of the organization to show the flow of communication between
entities and individuals.
Development of social tools within the organization to take greater advantage of the
creation of the KM system.
KMS systems work with information, although it is a discipline that extends beyond
computer systems. The most important features of a KMS system can include:

Purpose: a KMS must have the explicit objective of knowledge management, allowing
collaboration, sharing good practices and the like.
Context: A perspective of KMS systems is to see that knowledge is information organized
with intelligence, accumulated and integrated in a context of creation and application of said
knowledge.
Processes: the KMS system is developed to support and allow intensive knowledge
processes, such as tasks or projects of creation, construction, identification, capture,
selection, evaluation, access, retrieval and application, which is the so-called knowledge life
cycle.
Participants: Users can play active participant roles in knowledge networks and
communities, although this does not necessarily have to be the case. KMS systems are
designed so that knowledge develops collectively and the distribution of said knowledge is a
continuous process of change, reconstruction and application in different contexts, by
different participants with different backgrounds and experiences.
Instruments: the KMS system must support knowledge management instruments, such as
the capture, creation and sharing of codifiable aspects of the experience, the creation of
corporate knowledge directories, with their correct classification, taxonomy or ontology,
experience locators, skills management, collaboration tools to connect people interested in
the same topics, thus allowing the creation of knowledge networks.
A KMS offers integrated services to develop KM instruments for a network of participants,
who will be active knowledge workers throughout the knowledge life cycle. KMS systems
can be used for cooperative processes, collaboration between communities, virtual
organizations, societies or other virtual networks, to manage content, activities, interact and
generate workflows, projects, jobs, departments, privileges, roles, participants with the
purpose of extracting and generating new knowledge, adding value and transferring it,
generating new services, using new formats and interfaces in different communication
channels.

The term KMS can be associated with Open Source programs and Open Source Software,
Open Standards, Open Protocols and Open Knowledge licenses, initiatives and policies.

Benefits of KM systems

Some of the most notable advantages of KM systems are:

Valuable organizational information is shared throughout the organization's structure.

We can avoid reinventing the wheel, reducing redundant work by reusing work already done
by others in the same organization.
Reduction of training times for new employees.
Retention of the intellectual property of the works after the employee leaves the company. It
is as if knowledge is encoded.

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