MOD 2

1. MOD 2 Kinds of Information systems

2. Transaction Processing Information Systems In every organization there are business transactions that provide its mission-critical activities. Each transaction may generate additional transactions. Since the computations involved in most transactions are simple and the transaction processes are well defined they can be easily computerized. The transaction processing system • Monitors • Collects • Stores • Processes • Disseminates information for all routine core business transactions. The primary goal of TPS is to provide all the information needed to keep the business running properly and efficiently.

3. Transactions • Transactions… • Basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, and payroll checks in an organization • Transaction processing systems (TPS) • Perform routine operations and serve as a foundation for other systems

4. Transaction processing system • A transaction processing system is a type of information system. • TPSs collect, store, modify and retrieve the transactions of an org. A transaction is an event that generates or modifies data that is eventually stored in an information system. • E.g. order entry system, cheque processing systems, accounts receivable systems, payroll system , ticket reservation systems. • These system help any company to conduct operations and keep track of its activities.

5. Data entry & input Processing Documents& reports • Documents: • pick list • cheques to vendors • receiving notices • paycheques • Operational reports: • finished product inventory status • raw materials; packing materials; spare parts; inventory status Database • Internally generatedtransactions: • shipped orders • purchase orders • employee time cards • Externally generated transactions: • customer orders • vendor invoices • customer payments • Database update: • customer orders • inventory • purchase orders • customers • suppliers

6. A ticket reservation system displays a message on the terminal indicating seats sold out to people, it also prints the tickets and perhaps a mailing label for sending them. Notice of the event TPS program TPS Database Event Transaction keyed Reports Response

7. Objectives of TPS • Process data generated by and about transactions • Maintain a high degree of accuracy • Ensure data and information integrity and accuracy • Produce timely documents and reports • Increase labour efficiency • Help provide increased and enhanced service • Help build and maintain customer loyalty • Achieve competitive advantage

8. TPS characteristics • They collect, store, modify and retrieve the transaction of an org • Directly support business operations • Must be designed in conjunction with the organizations procedures. • Main information processes: collecting and storage.

9. Types of TPS • On-line system: it involves a direct connection between the operator and the TPS program, they provide immediate result. • E.g. An order arrive by telephone call for Pizza hut it is processed at that moment and the results are produced.

10. On-line Schematic Terminal Terminal Terminal Output Immediateprocessingof eachtransaction Terminal Terminal Terminal

11. TYPES OF TPS • Batch processing: here the transactions are grouped together and processed as a unit. • E.g. A cheque processing system in a bank all the cheque received in a particular day are grouped together. Then they are sorted by the account no and processed in a batch.

12. Batch Schematic Input (batched) Data entryof accumulatedtransactions Output

13. Disadvantages in batch processing • Processing schedule predetermined • Errors unable to be corrected during processing • Sorting transaction data- expensive and time consuming

14. Example of batch transaction processing • Cheque clearance • Bill generation • Credit card sales transaction • Example of real time transaction processing • Reservation systems • Hotels • Point of sales terminals • Library systems

15. Point-of-Sale Transaction Processing System Customer’sreceipt Inventorydatabase Exceptionreport Managementinformationsystem UPC andquantity Point-of-saletransactionprocessingsystem UPC Scanner Quantity, Date, time Item, quantity, date, time, price Purchasesdatabase UPC Price Itemdatabase

16. Batch vs. On-Line Transaction Processing • Two types of TPS: • Batch processing • A system whereby business transactions are accumulated over a period of time and prepared for processing as a single unit or batch • On-line transaction processing (OLTP) • A system whereby each transaction is processed immediately, without the delay of accumulating transactions into a batch

17. Difference b/w real time and batch Real time Batch each transaction part of a group database not accessible all the time more errors data is organised and stored before master file is updated errors can occur during these steps easier to maintain than real time. • each transaction is unique • transactions are stand alone • requires master files to be available more often for updating • fewer errors- transaction data is validated and entered immediately • infrequent errors may occur- but often tolerated • not practical to shut down whole system ( infrequent errors)

18. Model of TPS Order Acknowledgement Current Records Product Customer Inventory Business Rules Accepted Orders

19. Transaction Processing System TPS Model:Customer order processing & acceptance E-mail To Customer Customer Order: Mail/E-mail Customer Order data processing Customer Order Transaction Processing System (TPS) Trigger Order Acknowledgement Customer Order Through Web Update Order book Customer Type Check Credit Terms Check Credit Limit check Delivery date check Reserve stock Business Rules based processing

20. What is Office Automation? • Office automation refers to the use of integrated computer and communication systems to support administrative procedures in an office environment. • Office automation systems are computer based information systems that collect, process, store and transmit electronic messages, documents and other forms of communications among individuals, work groups and org.

21. Office Management • Office management systems include electronic office accessories, electronic scheduling, and task management. • These systems provide an electronic means of organizing people, projects, and data. • Business dates, appointments, notes, and client contact information can be created, edited, stored, and retrieved. • Additionally, automatic reminders about crucial dates and appointments can be programmed.

22. Projects and tasks can be allocated, subdivided, and planned. All of these actions can either be done individually or for an entire group. • Computerized systems that automate these office functions can dramatically increase productivity and improve communication within an organization.

23. Office Automation system collects, processes, stores and transmits data and information in the form of electronic office communication.OAS could also be considered as computer-based information system that collects, process, store and transmit electronic message, document and other form of communication among individual, work group and organizations.Examples- word processing, electronic mail, desktop publishing, telecommunication and document image processing.

24. Need for Office Automation • Storage space • Cost of processing • Paper Cost

25. Types of functions integrated by office automation systems include • electronic publishing; • electronic communication; • electronic collaboration; • image processing; and • office management. 

26.  At the heart of these systems is often a local area network (LAN) or WAN • It allows users to transmit data, voice, mail, and images across the network to any destination, whether that destination is in the local office on the LAN, or in another country or continent, through a connecting network. • An OAS makes office work more efficient and increases productivity.

27. Electronic Publishing • Electronic publishing systems include word processing and desktop publishing. • Word processing software, (e.g., Microsoft Word, Corel Word-Perfect) allows users to create, edit, revise, store, and print documents such as letters, memos, reports, and manuscripts.

28. Desktop publishing software (e.g., Adobe PageMaker, Corel VENTURA, Microsoft Publisher) enables users to integrate text, images, photographs, and graphics to produce high-quality printable output. • Desktop publishing software is used on a microcomputer with a mouse, scanner, and printer to create professional-looking publications. These may be newsletters, brochures, magazines, or books.

29. Electronic Communication • Electronic communication systems include • electronic mail (e-mail), • voice mail, • facsimile (fax), and • desktop videoconferencing.

30. Electronic Mail • E-mail is software that allows users, via their computer keyboards, to create, send, and receive messages and files to or from anywhere in the world. • Most e-mail systems let the user do other sophisticated tasks such as filter, prioritize, or file messages; forward copies of messages to other users; create and save drafts of messages; send "carbon copies"; and request automatic confirmation of the delivery of a message. • E-mail is very popular because it is easy to use, offers fast delivery, and is inexpensive. • Examples of e-mail software are Eudora, Lotus Notes, and Microsoft Outlook.

31. Voice Mail • Voice mail is a sophisticated telephone answering machine. • It digitizes incoming voice messages and stores them on disk. • When the recipient is ready to listen, the message is converted from its digitized version back to audio, or sound. • Recipients may save messages for future use, delete them, or forward them to other people.

32. Facsimile. • A facsimile or facsimile transmission machine (FAX) scans a document containing both text and graphics and sends it as electronic signals over ordinary telephone lines to a receiving fax machine. • This receiving fax recreates the image on paper. A fax can also scan and send a document to a fax modem (circuit board) inside a remote computer. • The fax can then be displayed on the computer screen and stored or printed out by the computer's printer.

33. Desktop Videoconferencing • Desktop videoconferencing is one of the fastest growing forms of videoconferencing. • Desktop videoconferencing requires a network and a desktop computer with special application software (e.g., CUSeeMe) as well as a small camera installed on top of the monitor.  • Images of a computer user from the desktop computer are captured and sent across the network to the other computers and users that are participating in the conference. • This type of videoconferencing simulates face-to-face meetings of individuals.

34. Electronic Collaboration • Electronic collaboration is made possible through electronic meeting and collaborative work systems and teleconferencing. • Electronic meeting and collaborative work systems allow teams of coworkers to use networks of microcomputers to share information, update schedules and plans, and cooperate on projects regardless of geographic distance. • Special software called groupware is needed to allow two or more people to edit or otherwise work on the same files simultaneously.

35. Teleconferencing is also known as videoconferencing. • As was mentioned in the discussion of desktop videoconferencing earlier, this technology allows people in multiple locations to interact and work collaboratively using real-time sound and images. • Full teleconferencing, as compared to the desktop version, requires special-purpose meeting rooms with cameras, video display monitors, and audio microphones and speakers.

36. Tele conferencing rooms

37. Telecommuting and Collaborative Systems • Telecommuters perform some or all of their work at home instead of travelling to an office each day, usually with the aid of office automation systems, including those that allow collaborative work or meetings. • A microcomputer, a modem, software that allows the sending and receiving of work, and an ordinary telephone line are the tools that make this possible.

38. Telecommuting is gaining in popularity in part due to the continuing increase in population, which creates traffic congestion, promotes high energy consumption, and causes more air pollution. • Telecommuting can help reduce these problems. Telecommuting can also take advantage of the skills of homebound people with physical limitations.

39. Studies have found that telecommuting programs can boost employee morale and productivity among those who work from home. • It is necessary to maintain a collaborative work environment, however, through the use of technology and general employee management practices, so that neither on-site employees nor telecommuters find their productivity is compromised by such arrangements. • The technologies used in electronic communication and teleconferencing can be useful in maintaining a successful telecommuting program.

40. Image Processing • Image processing systems include electronic document management, presentation graphics, and multimedia systems. • Imaging systems convert text, drawings, and photographs into digital form that can be stored in a computer system. • This digital form can be manipulated, stored, printed, or sent via a modem to another computer. • Imaging systems may use scanners, digital cameras, video capture cards, or advanced graphic computers. • Companies use imaging systems for a variety of documents such as insurance forms, medical records, dental records, and mortgage applications.

41. Presentation graphics software uses graphics and data from other software tools to create and display presentations. • The graphics include charts, bullet lists, text, sound, photos, animation, and video clips.  • Examples of such software are Microsoft Power Point, Lotus Freelance Graphics, and SPC Harvard Graphics. • Multimedia systems are technologies that integrate two or more types of media such as text, graphic, sound, voice, full-motion video, or animation into a computer-based application. • Multimedia is used for electronic books and newspapers, video conferencing, imaging, presentations, and web sites.

42. Management Information Systems (MIS) • An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations • Output, or reports, are usually generated through accumulation of transaction processing data • Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization

43. Management Information Systems • The original type of information system that supported managerial decision making • Produces information products that support many day-to-day decision-making needs • Produces reports, display, and responses • Satisfies needs of operational and tactical decision makers who face structured decisions 10-43

44. Management Information Systems • Information system at the management level of an organization that serves the functions of planning, controlling, and decision making by providing routine summary and exception reports. • TYPE: Management-level • INPUTS: high volume data • PROCESSING: simple models • OUTPUTS: summary reports • USERS: middle managers • DECISION-MAKING: structured to semi-structured • E.g. annual budgeting

45. A SAMPLE MIS REPORT

46. Objectives of MIS • To provide requisite information support for managerial functions within the org. • To make available, right information at the right place at the right time at the lower cost. • To ensure that wrong and unwanted info is not generated; the condition of data overloaded is avoided. • The objectives of MIS are derived from company’s objectives.

47. Characteristics of MIS 1. MIS support structured decisions at the operational and management control levels. However, they are also useful for planning purposes of senior management staff. 2. MIS are generally reporting and control oriented. They are designed to report on existing operations and therefore to help provide day-to-day control of operations. 3. MIS rely an existing corporate data-and data flows. 4. MIS have little analytical capability. 5. MIS generally aid in decision making using past and present data. 6. MIS are relatively inflexible. 7. MIS have an internal rather than an external orientation.

48. Scope of MIS • To provide managerial end users with information products that support much of their day to day decision making needs • To provide a variety of reports and displays to management • To provide information on the contents of the information products specified in advance by mangers. • To retrieve information about internal operations from databases that have been updated by TPS.

49. Employees Corporate databases ofinternaldata Databasesofexternaldata Corporateintranet Decisionsupportsystems Databasesofvalidtransactions Application databases Businesstransactions Transactionprocessingsystems Managementinformationsystems Executivesupportsystems Operationaldatabases Expertsystems Drill-down reports Exception reports Demand reports Key-indicator reports Input anderror list Scheduledreports

50. Outputs of a Management Information System • Scheduled reports • Produced periodically, or on a schedule (daily, weekly, monthly) • Key-indicator report • Summarizes the previous day’s critical activities • Typically available at the beginning of each day • Demand report • Gives certain information at a manager’s request • Exception report • Automatically produced when a situation is unusual or requires management action