Transaction Processing System (TPS) A transaction is a business event that generates or modifies data stored in an information system. A TPS collects and stores data about transactions and sometimes controls decisions made as part of a transaction. A TPS focuses on record keeping and control of repetitive clerical processes. (Source: Alter, 1999)

TPS (Contd.) Design of a TPS is based on TPSs are capable of execution details of the transactions; data content and format; and rules and policies to be enforced. TPSs are capable of enforcing rules and work procedures; detecting errors, such as missing data, invalid data, and inconsistent data; and automating certain decision-making functions. (Source: Alter, 1999)

TPS (Contd.) Batch Processing: Information on individual transactions is collected and stored. Based on a schedule or number accumulated the transactions are processed later to update the database. Examples are processing of checks and other paper forms, generation of paychecks, and weekend deposits into ATMs. Problems - error correction & data currency. (Source: Alter, 1999)

TPS (Contd.) Real-time Processing: Each transaction is processed immediately. An advantage is immediate error correction. Examples are airline reservation systems and bursar/bank systems. Characterized by quick response and high availability. (Source: Alter, 1999)

ERP System - a TPS? An ERP system encompasses transaction processing done in various functional areas of an enterprise. Actually an ERP system is a hybrid system that has characteristics of many of the individual information system types including the TPS. (Source: Alter, 1999)

Management Information System (MIS) MISs generate summary information for monitoring performance, maintaining coordination, and providing background about the organization’s operation. Users are both managers and the employees who receive feedback about performance indicators. MISs extract and summarize data from TPSs. (Source: Alter, 1999)

MIS (Contd.) Typically provide pre-specified reports on a scheduled basis. MIS provides information; people decide how to improve performance. Executive Information Systems (EISs) take MISs to the next level. (Source: Alter, 1999)

Executive Information System (EIS) EISs offer a highly interactive system that provides managers and executives flexible access to information for monitoring operating results and general business conditions. Executives can “drill down” to understand specific items of concern in more detail. Data is replenished periodically from internal and external sources. (Source: Alter, 1999)

EIS (Contd.) Typical characteristics of EISs are user-friendly interfaces; variety of formats (tables, graphs, etc.); triggers for exceptional conditions; multiple levels of detail;and customizable reports. EISs help executives find the information they need whenever they need it and in whatever form is most useful. (Source: Alter, 1999)

Decision Support System (DSS) A DSS is an interactive IS that provides information, models, and data manipulation tools to help make decisions in semi-structured and unstructured situations. In contrast to MIS, a DSS supports managers and professionals doing largely analytical work in less structured situations. (Source: Alter, 1999)

DSS (Contd.) The traditional DSS approach includes interactive problem solving; direct use of models; user-controllable methods for displaying and analyzing data; and formulating and evaluating alternatives. Examples range from spreadsheets to customized simulation or optimization models focusing on specific situations. (Source: Alter, 1999)

DSS (Contd.) DSSs support repetitive decision making by structuring the decision to some extent and defining procedures and formats. An example of the repetitive case is the use of a DSS by insurance agents to help customers choose the “right” insurance policy - options, cost and benefits. (Source: Alter, 1999)

DSS (Contd.) DSSs support non-repetitive decision making by providing data, models, analytical tools, and interface methods. An example is a system that helps marketing managers evaluate alternative marketing plans and track results. Data includes internal sales results and external market research databases. (Source: Alter, 1999)

New Approaches to DSS Online Analytical Processing (OLAP) and data mining. OLAP is the use of online data analysis tools to explore large transaction databases. Data mining is the use of data analysis tools to find patterns in large transaction databases. (Source: Alter, 1999)

Data Mining (Contd.) Examples are customer buying patterns in grocery stores and statistical profiles of customers who are likely to switch long-distance carriers. One of the difficulties in data mining is the problem of differentiating between meaningful and spurious patterns. (Source: Alter, 1999)

Execution Systems These systems directly support people doing the value-added work in an organization. Examples are systems that help plastic surgeons design operations and show likely results to their patients. Expert or knowledge-based systems are one type of execution systems. (Source: Alter, 1999)

Expert Systems Expert systems support the intellectual work of professionals engaged in design, diagnosis, or evaluation of complex situations requiring expert knowledge in a well-defined area. Common applications are medical diagnosis, troubleshooting, chemical analysis, data interpretation, etc. (Source: Alter, 1999)

Office Automation Systems An OAS facilitates everyday information processing tasks in offices and business organizations. They include a wide array of productivity tools. Spreadsheets Word processors, desktop publishing tools Presentation packages Personal database systems (Source: Alter, 1999)

Communication Systems The broad categories of communication systems are Teleconferencing Messaging systems - e-mail, v-mail, and fax Groupware (e.g. Lotus Notes) Intranets and extranets Knowledge management systems (Source: Alter, 1999)