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1.2-Difference Between Operational and Informational Systems

Operational systems are used to run the core day-to-day business processes like processing orders, invoices, shipments, and payments. They input data into databases through individual transactions. Informational systems watch how the business runs and support strategic decision making by extracting aggregated and analyzed data from databases. They provide information on top products, problem regions, margins, and other metrics to improve the business. The key differences are that operational systems focus on current transactional data accessed frequently for updates, while informational systems use archived and derived data for complex ad hoc queries by management.

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210 views6 pages

1.2-Difference Between Operational and Informational Systems

Operational systems are used to run the core day-to-day business processes like processing orders, invoices, shipments, and payments. They input data into databases through individual transactions. Informational systems watch how the business runs and support strategic decision making by extracting aggregated and analyzed data from databases. They provide information on top products, problem regions, margins, and other metrics to improve the business. The key differences are that operational systems focus on current transactional data accessed frequently for updates, while informational systems use archived and derived data for complex ad hoc queries by management.

Uploaded by

Abdul Hameed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Difference between

Operational and
Informational Systems
Difference between Operational and Informational Systems
• Operational Systems make the wheels of business turn.
• Operational systems are online transaction processing
(OLTP) systems.
• These are the systems that are used to run the day-to-day
core business of the company. They are the so called bread-
and-butter systems.
• Operational systems make the wheels of business turn.
They support the basic business processes of the company.
These systems typically get the data into the database
Difference between Operational and Informational Systems
• Each transaction processes information about a single
entity such as a single order, a single invoice, or a single
customer. For example
• Take an order
• Process a claim
• Make a shipment
• Generate an invoice
• Receive cash
• Reserve an airline seat
Difference between Operational and Informational Systems

• Informational Systems watch the wheels of business turn.


• On the other hand, specially designed and built decision-support
systems are not meant to run the core business processes.
• They are used to watch how the business runs, and then make
strategic decisions to improve the business.
• Decision-support systems are developed to get strategic information
out of the database, as opposed to OLTP systems that are designed
to put the data into the database.
Difference between Operational and Informational Systems

• Decision support systems are developed to provide


strategic information. For example,
• Show me the top-selling products
• Show me the problem regions
• Tell me why
• Alert me when a district sells below target
• Show me the highest margins
Difference between Operational and Informational Systems
  Operational Informational

Data Content Current values Archived, derived, summarized

Data Structure Optimized for transactions Optimized for complex queries

Access frequency High Medium to low

Access type Read, update, delete Read

Usage Predictable, repetitive Ad hoc, random, heuristic

Users Large number Relatively small number

Response time Sub-seconds Several seconds to minutes

Table 1‑1 Difference between Operational and Informational Systems

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