Chapter 2 IT
Chapter 2 IT
Batch systems
Types of TPS
It enables one or more of the
following activities:
Storing transaction data to create a file of
transaction record
- information documents
- turnaround documents
- edit reports.
TRANSACTION PROCESSING CYCLE
Transaction Processing System
Definition:
Cross-functional information systems that
process data resulting from the occurrence of
business transactions
Transaction Processing
◦ Batch – transaction data are accumulated over a
period of time and processed periodically
◦ Real-Time – data are processed immediately after a
transaction occurs
Transaction Processing Cycle
Database Maintenance – updating corporate
databases of an organization to reflect changes
resulting from day-to-day business transactions
What it does????
Whom it helps????
Office Publishing System
Word processing
Desktop publishing
Voice store and forward systems
Tele-conferencing
multimedia
Management Information System
Transaction Processing Systems (TPS)
◦ Support operation
◦ Management and control
◦ Routine, normal operations
Management Information Systems (MIS)
◦ Provide decision-making support for routine,
structured decisions
◦ Closely linked to and fed by TPS
MIS
Terminology Confusion
◦ MIS = the study of information
technology in business settings
◦ But, MIS is also term to refer to class
of systems used to support
operational and tactical decision
making
A Model for Problem Solving
Decision Making Phase
◦ Intelligence gathering
◦ Design
◦ Choice
Implementation
Monitoring
Decision Making
A step in problem solving
Intelligence gathering
◦ Definition of problem
◦ Data gathered on scope
◦ Constraints identified
Design phase
◦ Alternatives identified and assessed
Choice
◦ Selection of an alternative
Structured vs. Unstructured Problems
Structured problems lend themselves to
programmed decisions
◦ The implication is that a repeatable
process can be employed and these
can be automated
Unstructured problems require
unprogrammed decisions
Unstructured Problems
Can be addressed (or partially addressed)
with Decision Support Systems
Structured Problems
Can be addressed by an MIS
Three decision models or techniques
◦ Optimization
Find the best solution
◦ Satisfying
Find a solution which meets certain
criteria
◦ Heuristics
Rule-based solution generation
Goals of MIS
Provide managers with information
Regular, routine operations
Control, organize and plan better
Typical Inputs and Outputs
Inputs: Information from the TPS
Outputs: hard and softcopy reports
◦ Scheduled reports
◦ On-demand reports
◦ Key-indicator (business
fundamentals)
◦ Exception reports
Functional Perspectives of MIS
Financial MIS
◦ Will integrate information from
multiple sources
◦ Functions
Costing
P&L reporting
Auditing
Funds management
Functional Perspectives of MIS
Manufacturing
◦ Design and Engineering
◦ Master Production Scheduling
◦ Inventory Control
◦ Materials Planning
◦ Manufacturing and Process Control
◦ Quality Control
Functional Perspectives of MIS
Marketing
◦ Market research
Web-based market research
◦ Pricing
Functional Perspectives of MIS
Transportation and Logistics
◦ Route and schedule optimization
Human Resources
Accounting
Characteristics of MIS
Management oriented
Management Directed
Integrated
Common Data Flows
Strategic Planning
Bias Towards Centralization
Information and communication technology
Enabled
Decision support system (DSS)
Defined as interactive computer based systems, which
help decision makers utilize data and models to solve
unstructured problems.
Architecture of DSS
Types of DSS
Status inquiry systems
Data analysis systems
Information analysis systems
Accounting systems
Model based systems
DSS models
Behavioural models