UNIT 2

-Pragya Singh
TRANSACTION PROCESSING
SYSTEMS

TPS are computerized systems that perform and record

the daily routine transactions necessary to conduct the
business.
 Their primary purpose is to record, process, validate,
and store transactions that take place in the various
functional areas/of a business for future retrieval and
use.
Transactions are events that occur as part of doing
business, such as sales, purchases, deposits,
withdrawals, refunds, and payments.
Types of Transactions
Internal Transactions

 External Transactions
Characteristics of TPS
A TPS records internal and external transactions for a
company.

 A TPS performs routine, repetitive tasks. It is mostly

used by lower-level managers to make operational
decisions

Transactions can be recorded in batch mode or

online. In batch mode, the files are updated
periodically; in online mode, each transaction is
recorded as it occurs
Six steps in processing a transaction
Input
Data entry,
Data validation,
Data processing and revalidation,
Storage - Output generation, and
Query support
METHODS FOR PROCESSING
TRANSACTIONS

On-line entry with immediate processing

On-line entry with subsequent processing

Batch processing
Decision Support Systems (DSS)

A decision support system is a computer system at the

management level of an organization that combines
data, sophisticated analytical tools, and user-friendly
software to support semi-structured and unstructured
decision making
Overview of DSS
Features of DSS
give users the tools necessary to analyze important
blocks of data,
DSS are tightly focused on a specific decision or set of
decisions, such as routing, queuing, and evaluating.
DSS are aimed at higher-middle and top management
with emphasis on change, flexibility and quick
response. A greater emphasis is placed on models,
graphics, and assumptions.
 The design of DSS applies a different set of skills than
the design of structured, operational systems.
The technology required DSS is based on the need for
flexible access.
COMPONENTS (OR)
ARCHITECTURE
Database

Model Base

 Optimization models
 Forecasting models
 Sensitivity analysis models

 DSS Software
ARCHITECTURE of DSS

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Types of decisions
Programmed Decisions (Structured Decisions)

Non Programmed Decisions (unstructured Decisions)

Difference between DSS & MIS
Group Decision Support System (GDSS)

A group decision support system is an interactive

computer-based system to facilitate the solution of
unstructured problems by a set of decision rankers
working together as a group.
COMPONENTS OF GDSS

Decision maker
 Database and model base
 Groupware
Decision Making
Decision-making process is the core of managerial
accomplishes a particular task.
Decision-making process is the core of managerial
functions in MIS. It is said that the decision-making
process considers two or more alternatives from which
a final decision could be made.
But if only one alternative is available, then no
decision could be made. A decision-making process
involves the entire process of establishing goals,
defining activities, searching for alternatives and
finally the development of plans.
Levels of Decision Making in an
Organization

Strategic Decision Making

Management Control

Knowledge-Level Decision Making

Operational control
Simon’s Model of Decision Making
The decision making process is based on the following
three phases as given by Herbert A. Simon in his
model of decision making:

 1. Intelligence phase
 2. Design phase
 3. Choice phase
Information Systems help improve the
decision-making process by

providing more information about the problem

presenting a greater variety of possible alternatives
showing consequences and effects of choices
measuring the outcome of different possible solutions
providing feedback on the decision that is made
Executive Information Systems (EIS)

An executive support system is an information system

at the strategic level of an organization designed to
address unstructured decision making through
advanced graphics and communication
Features
EIS are relevant for top management of an
organization
These systems may derive data from different
functional areas but the decisions that are made by
integrating these data are not meant for any specific
functional area but for the organization as a whole
The information generated through EIS are in t he
form of summary reports and graphics
EIS combines both internal and external information
for the top management
Executives are helped by EIS coaches and chauffeurs.
Developing EIS
Executive support systems are developed using the
prototyping method

Prototyping allows iterative, quick changes to the

system.

It provides rapid access to timely information and

direct access to management reports.
COMPONENTS OF EIS
Major components of EIS are as follows:-
1. Executive's staff
2. Database
3. EIS software
 Personal productivity software
Prewritten EIS software
 Customized EIS software
4. EIS Output
Characteristics of EIS
Advantages
Simple for high-level executives to use Operations do
not require extensive computer experience
Provides timely delivery of company summary
information
Provides better understanding of information
Filters data for better time management
Provides system for improvement in information
tracking
Disadvantages
Computer skills required to obtain results
Requires preparation and analysis time to get desired
information
Detail oriented Provides detailed analysis of a situation
Difficult to quantify benefits of DSS How do you
quantify a better decision?
Difficult to maintain database integrity
Provides only moderate support of external data and
graphics capabilities
Expert Systems (ES)

Expert systems are a common form of artificial

intelligence

Expert systems ask questions, then give you advice

and reasons why you should take a certain course of
action based on hard data, not on hunches. Again, they
don't make the final decision.
Building an Expert System
 Reduced errors
 Reduced cost, reduced training time
 Improved decisions
 Improved quality and services
 Happy users and happy customers
 Relationships of Systems to One Another:
Integration