Information System ���Gullagong�Associate Prof.�PG Deptt. Of Comp.Sc. & IT

Information system

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• Transaction Processing Systems (TPS)

Interdependence between Organisations and Information Technology

Meeting Business Objectives

• Many organisations rely on information systems
• Very small businesses often rely on non-IT based information systems
• E.g. Local Newsagent, Butcher, etc
• However, contemporary E-Commerce are becoming increasingly popular – e.g. Ebay Sellers
• Larger organisations most often rely on complex IT Information Systems. They often employ many different types of IT based IS

Meeting Business Objectives

• Many Business Objectives
• Many different agendas depending on the stakeholder
• E.g. Upper levels of management will have different concerns than lower levels of management; Similarly operational staff will have different concerns again.
• Different IS serve different objectives
• Whether IT or non-IT based, many different IS are used within a given organisation

Different Types of IS

• Transaction Processing Systems (TPS)
• Management Information Systems (MIS)
• Executive Information Systems (EIS)
• Decision Support Systems (DSS)
• Expert Systems
• Communication & Collaboration Systems
• Office Automation Systems

Transaction Processing Systems (TPS)

• A Transaction Processing System (TPS) performs and records the daily routine transactions necessary to conduct business

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• TPS process business transactions such as orders, employee timesheets, payments, reservations, and so on

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• They capture and process data involved in business transactions

TPS - ATM Example

• Automated Teller Machine (ATM)
• Captures and processes data involved when you interact with it via your card
• Various steps involved when engaging in a transaction with the ATM
• You must have a valid ATM card
• You must have the correct password
• If you have the correct password, you can then get access to services such as withdrawing cash, topping up mobile phone credit, check balance

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• From this example, what do you think are the most important aspects of a transaction?

TPS – PayRoll Example

Figure 2-2

A TPS for payroll processing captures employee payment transaction data (such as a time card). System outputs include online and hard-copy reports for management and employee paychecks.

Transaction Processing Systems (TPS)

• Examples

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TPS

• Why create a TPS?
• Allow you to meet business objectives
• Capture and process data that is needed for other information systems in the organisation. By capturing transaction data and giving it meaning you can create useful information!
• Example: Google Analytics

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Example of Google Analytics

Example Google Analytics

• Each time an internet user logs onto a website that has Google Analytics installed, data is captured.
• In essence, it is a type of transaction processing system. Each time you interact it captures and stores data about that activity.

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• Why is this useful?

Using data from a TPS

• http://www.ted.com/talks/hans_rosling_shows_the_best_stats_you_ve_ever_seen.html

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TPS

• Using your own example of a TPS or one the examples discussed earlier
• Discuss how the organisation might be able to use that information

How Management Information Systems Obtain Their Data from the Organization’s TPS

Figure 2-3

In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting system at the end of the time period. Managers gain access to the organizational data through the MIS, which provides them with the appropriate reports.

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Executive Information Systems (EIS)

Executive Information System (EIS)

• A type of business information system that provides high-level information in an aggregated form for the higher level executives of an organisation
• High-level aggregation of information

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• Executive Level: Focus on long-term strategic issues of the firm! What is important here?

Executive Information System (EIS)

• EIS are used to support managers at the executive level where strategic concerns are typically the focus
• Allows executives to scan abstract information for trends or anomalies
• Rather than providing concrete solutions and decisions, this abstract information is used by executives along with many other elements to do their work

Different Levels of Organisation

Top Level –

Strategic

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Middle Level –

Management

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Lower Level –

Operations

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Middle Level Management�Concerned with functional management!

• Middle level management require abstract information based on the data collected at the operational level.
• Transaction Processing Systems (TPS) allow you to capture the data in the operational level
• The effectiveness of middle level management may often depend on the relevance and timeliness of the data collected in the TPS.

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Top Level Management - �Concerned with Strategic Issues!

• Executives and Top Level management require highly abstract information
• TPS allow you to capture the data in the operational level
• MIS use the data captured by TPS to enable effective management of the functional areas of the business
• Executive Information Systems (EIS) use highly abstracted information from both MIS and TPS to enable effective strategic management

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An Example – Assess the different types of Information at each Level

Top Level –

Strategic

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Middle Level –

Management

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Lower Level –

Operations

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Benefits of EIS

• View more data and information but takes less time and effort
• Think of before contemporary IT based IS
• Flexibility to view the information in different ways
• Can change presentation type; timelines, etc
• Can compare different time periods
• Monitor Key Performance Indicators (KPI)

How Management Information Systems Obtain Their Data from the Organization’s TPS

Figure 2-3

In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting system at the end of the time period. Managers gain access to the organizational data through the MIS, which provides them with the appropriate reports.

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• Thanks