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

2. TPS (Contd.) zDesign of a TPS is based on yexecution details of the transactions; ydata content and format; and yrules and policies to be enforced. zTPSs are capable of yenforcing rules and work procedures; ydetecting errors, such as missing data, invalid data, and inconsistent data; and yautomating certain decision-making functions. (Source: Alter, 1999)

3. TPS (Contd.) zBatch 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. yExamples are processing of checks and other paper forms, generation of paychecks, and weekend deposits into ATMs. yProblems - error correction & data currency. (Source: Alter, 1999)

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

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

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

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

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

9. EIS (Contd.) zTypical characteristics of EISs are yuser-friendly interfaces; yvariety of formats (tables, graphs, etc.); ytriggers for exceptional conditions; ymultiple levels of detail;and ycustomizable reports. zEISs help executives find the information they need whenever they need it and in whatever form is most useful. (Source: Alter, 1999)

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

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

12. DSS (Contd.) zDSSs support repetitive decision making by structuring the decision to some extent and defining procedures and formats. zAn 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)

13. DSS (Contd.) zDSSs support non-repetitive decision making by providing data, models, analytical tools, and interface methods. zAn 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)

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

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

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

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

18. Office Automation Systems zAn OAS facilitates everyday information processing tasks in offices and business organizations. They include a wide array of productivity tools. ySpreadsheets yWord processors, desktop publishing tools yPresentation packages yPersonal database systems (Source: Alter, 1999)

19. Communication Systems zThe broad categories of communication systems are yTeleconferencing yMessaging systems - e-mail, v-mail, and fax yGroupware (e.g. Lotus Notes) yIntranets and extranets yKnowledge management systems (Source: Alter, 1999)