Types of Information System — Transaction Processing Systems (TPS) 10 October 2011Interdependence between Organisations and Information Technology Business Firm Figure 1-2 In contemporary systems there is a growing interdependence between a firm's information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permitit to do.Meeting Business Objectives * Many organisations rely on information systems * Very small businesses often rely on non-IT based information systems — E.g. Local Newsagent, Butcher, etc — However, contemporary E-Commerce are becoming increasingly popular — e.g. Ebay Sellers * Larger organisations most often rely on complex IT Information Systems. They often employ many different types of IT based ISMeeting Business Objectives Many Business Objectives Many different agendas depending on the stakeholder —E.g. Upper levels of management will have different concerns than lower levels of management; Similarly operational staff will have different concerns again. Different IS serve different objectives — Whether IT or non-IT based, many different IS are used within a given organisationDifferent Types of IS Transaction Processing Systems (TPS) Management Information Systems (MIS) Executive Information Systems (EIS) Decision Support Systems (DSS) Expert Systems Communication & Collaboration Systems Office Automation SystemsTransaction Processing Systems (TPS) * A Transaction Processing System (TPS) performs and records the daily routine transactions necessary to conduct business * TPS process business transactions such as orders, employee timesheets, payments, reservations, and so on * They capture and process data involved in business transactionsTPS - ATM Example * Automated Teller Machine (ATM) — Captures and processes data involved when you interact with it via your card — Various steps involved when engaging ina transaction with the ATM * You must have a valid ATM card * You must have the correct password * If you have the correct password, you can then get access to services such as withdrawing cash, topping up mobile phone credit, check balance — From this example, what do you think are the most important aspects of a transaction?TPS — PayRoll Example Employee Data To General Ledger Employee/Fle Database ‘Management reports Employee Number Name Address Pay rate Gross pay Federal tax FICA Medicare State tax Net pay Earnings (YTD) online = queries ‘To government agencies Employee paychecks Payroll data on master ile ATPS for payroll processing captures employee payment transaction data (such as a time card). System outputs include online and hard-copy reports for management and employee hecks. Payenec’ Figure 2-2Transaction Processing Systems (TPS) ExamplesTPS * Why create a TPS? — Allow you to meet business objectives — Capture and process data that is needed for other information systems in the organisation. By capturing transaction data and giving it meaning you can create useful information! * Example: Google AnalyticsExample of Google Analytics © | & httos//www.google.com/analy 3 Trae Sources Ci Content P Goals 1 Customised Reporting My Customisations: {custom Reports 1dr=20110909-20111009&cmp=average report oA Visits Son Ve) 148 visits Nov) 54.73% Bounce Rate vrewn/\ 383 Pageviews AA 00:01:54 Avg. Time on site Ann 2.59 Pagesivisit PWM 71.62% % New Visits eneExample Google Analytics * Each time an internet user logs onto a website that has Google Analytics installed, data is captured. * In essence, it is a type of transaction processing system. Each time you interact it captures and stores data about that activity. * Why is this useful?Using data from a TPS * http://www.ted.com/talks/hans rosling show s the best stats you ve ever seen.htmlTPS * Using your own example of a TPS or one the examples discussed earlier — Discuss how the organisation might be able to use that informationHow Management Information Systems Obtain Their Data from the Organization’s TPS Transaction Processing Systems Management Information Systems Order MIS FILES file Sales data Production 3) Sa tnt etd | t 4 product s A = | cost data ! a > 1) > Product change data Accounting ' files i 9 Expense + data aC Reports In the system illustrated by this diagram, three TPS supply surnmarized transaction data to the MIS reporting system at the end of the time period. Managers gain access to the organizational data through the MIS, which provides them with the appropriate reports. Figure 2-3 18