Transaction Processing System (TPS) Office Automation System (OAS)

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Transaction Processing System (TPS) Office Automation System (OAS)










MIS Data TPS More

Decision support

Input & output

Sophistication & complexity of processing & analysis






Basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, and payroll checks in an organization Perform routine operations and serve as a foundation for other systems

Transaction processing systems (TPS)

Purpose : Support operations

Recording Processing Reporting Purchase of an airline ticket Deposit or withdrawal of funds at a bank

TPSs exist in e.g.

Transaction Processing Systems (TPS)

Computerized system that performs and records the daily routine transactions necessary to conduct the business; these systems serve the operational level of the organization

TYPE: Operational-level INPUTS: transactions, events PROCESSING: updating OUTPUTS: detailed reports USERS: operations personnel, supervisors DECISION-MAKING: highly structured EXAMPLE:payroll,accountspayable

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 A system whereby each transaction is processed immediately, without the delay of accumulating transactions into a batch

On-line transaction processing (OLTP)

Batch Schematic

Data entry of accumulated transactions

Input (batched)


On-line SchematicTerminal Terminal Terminal


Immediate processing of each transaction

Terminal Terminal

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

Simplified Overview of a Transaction Processing System


Data entry & input Documents & reportsDocuments: Documents: pick list pick list cheques to vendors cheques to vendors receiving notices receiving notices


Internally generated Internally generated transactions: transactions: shipped orders shipped orders purchase orders purchase orders employee time cards employee time cards Externally generated Externally generated transactions: transactions: customer orders customer orders vendor invoices vendor invoices customer payments customer payments

DatabaseDatabase update: Database update: customer orders customer orders inventory inventory purchase orders purchase orders customers customers suppliers suppliers

paycheques paycheques Operational reports: Operational reports: finished product finished product inventory status inventory status raw materials; packing raw materials; packing materials; spare parts; materials; spare parts; inventory status inventory status

Data Processing Activities Common to TPSs

A transaction processing cycle

Data collection Data editing Data correction Data manipulation Data storage Document production


Original data Data collection Data edit Data manipulation Data storage Document production

Data correction

Source Data Automation

Source data automation

The process of capturing data at its source with minimal manual effort Data are entered directly into the computer

Transaction Processing Systems

Collects and Store data about transactions Are designed based on detailed specifications for how the transactions should be performed and how to control the collection of specific data in specific data formats and in accordance with rules and procedures for work done by clerks and customer service agents A well-designed TPS has back-up and recovery procedures that minimize disruptions resulting from computer outages Two types of TPS Batch Processing

Information for individual transaction is gathered but not processed immediately Each transactions is processed immediately

Real Time Processing

Point-of-Sale Transaction Processing SystemCustomers receipt UPC and quantity Inventory database Management information system Exception report

Point-of-sale transaction Scanner Quantity, processing Date, system time UPC UPC Price Item database

Item, quantity, date, time, price Purchases database

Traditional TPS Order Processing

Order processing

Processing an order from entry to delivery, including traditional accounting transactions


Invoice Products Inventory status

Customer Customer order in person or via mail, phone, EDI, internet Order entry/ sales configuration Orders Planned shipments

Finished product inventory

Shipment planning Pick list Shipment execution

Routing Planned shipments & routes Scheduling

Shipped orders Invoicing


Request for proposal


Problem, idea, request for information

Other contacts

Customer interaction system Market research Product development

Sales Marketing

Quality control

Transaction Processing System (TPS)

Typical Applications of TPS

A transaction processing cycleData collection Data editing Data correction Data manipulation Data storage Document production

Management Information Systems (MIS)


The MIS program combines the fundamental intellectual content of both Computer Science and Business Management Economics. MIS is the application of information technology to support the major functions and activities of either a private sector business or public sector institution. These systems provide feedback on organisational activities and help to support managerial decision making.

In the past, organizations recognized the importance of managing resources such as labor, capital, and raw materials. Today, it is widely accepted that managing the information resource is very often equally important. MIS supports the process of collection, manipulation, storage, distribution and utilization of an organization's information resources.


The vast majority of information systems are developed for and used by people in functional areas (e.g., manufacturing, human resources, accounting, finance and marketing). To develop information systems that address the needs of the organization, MIS professionals must possess a solid mix of business and technical knowledge.

They must understand organizational structures, objectives, operations (including processes and the flows of data between processes) and the financial implications related to these factors. MIS managers and professionals must stay up-todate with evolving information technologies and have a solid foundation of technical skills to select appropriate technologies and to implement computer-based information systems.

Business information systems (BIS)

The interactive relationships between the information systems and organizations, both technically and socially, and the business opportunities and challenges brought about by the BIS. This describes information systems used to support the functional areas of business.

MIS helps:

to establish relevant and measurable objectives to monitor results and performances (reach ratios) to send alerts, in some cases daily, to managers at each level of the organization, on all deviations between results and pre-established objectives and budgets.

Decision-Support Systems (DSS)

Interaction among Systems


Different types of IS by organizantional levels include: Transaction Processing Systems (TPS) Management Information Systems (MIS), and Decision Support Systems (DSS) Executive Support Systems (ESS), also known as Executive Information Systems (EIS)

Purposes of Information Systems

Types of Operations Support Systems

Transaction Processing Systems

Record and process business transactions Examples: sales processing, inventory systems, accounting systems Monitor and control physical processes Example: using sensors to monitor chemical processes in a petroleum refinery Enhance team and workgroup communication Examples: email, video conferencing

Process Control Systems

Enterprise Collaboration Systems

Two Ways to Process Transactions

Batch Processing

Accumulate transactions over time and process periodically Example: a bank processes all checks received in a batch at night Process transactions immediately Example: a bank processes an ATM withdrawal immediately

Online Processing

Components of an IS

Office Automation Systems (OAS)

Computer system, such as word processing, electronic mail system, and scheduling system, that is designed to increase the productivity of data workers in the office.

Office Automation Systems

Facilitates everyday information processing tasks in offices and business organization Includes a wide range of tools

Spreadsheets Word processors Presentation packages Personal database systems and note-taking systems

Help people perform personal record keeping, writing and calculation chores efficiently

TYPE: Knowledge-level INPUTS: documents, schedules PROCESSING: document management, scheduling, communication OUTPUTS: documents; schedules USERS: clerical workers EXAMPLE: document imaging system

Decision Support Systems (DSS)

Information system at the management level of an organization that combines data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making.

TYPE: Management-level INPUTS: low volume data PROCESSING: simulations, analysis OUTPUTS: decision analysis USERS: professionals, staff managers DECISION-MAKING: semi-structured EXAMPLE: sales region analysis

Characteristics of Decision-Support Systems1. DSS offer users flexibility, adaptability, and a quick response. 2. DSS operate with little or no assistance from professional programmers. 3. DSS provide support for decisions and problems whose solutions cannot be specified in advance. 4. DSS use sophisticated data analysis and modelling tools.

Decision ProcessDecision makers goes through a fairly systematic process.Define the Process or Problem

Intelligence phase Modeling phase

Develop Alternative Courses of Action

Select The Best One Review It

Choice phase

Act on it

Implementation phase

Decision Support SystemsDecision support system (DSS) is a computer-based information system that combines models and data in an attempt to solve semistructured and unstructured problems with user involvement.

Decision Support Systems

- Components

Every DSS consists of at least data management, user interface, model management components, and the end users. A few also contain a knowledge management component.

A DSS data management subsystem contains all the data that flow from several sources, and are extracted prior to their entry into a DSS database or a data warehouse. A model management subsystem contains completed models (financial, statistical, management science, or other quantitative models), and the routines to develop DSSs applications.

The user interface covers all aspects of the communications between a user and the DSS. The Users. The person (manager, or the decision maker) faced with the problem or decision that the DSS is designed to support A knowledge-based or intelligent subsystem provides the expertise for solving some aspects of the problem, or the knowledge that can enhance the operation of the other DSS components.

DSS Process

Data Model

Group Decision Support System (GDSS)

A Group Decision Support System (GDSS), also known as an Electronic Meeting System or groupware, is commonly defined as a collection of software, hardware, and procedures designed for the automated support of group work (Dennis, et al., 1988; Kraemer & King, 1988).

Group Decision Support The DSS methodology was initially Systems

designed to support individual decision makers. However, decision making is frequently a shared process. Where a group may be involved in making the decision. When a decision-making group is supported electronically, the support is referred to as a group decision support system (GDSS).


One-room group whose members are in one place Virtual group, whose members are in different locations

a DSS whose design, structure, and usage reflect the way in which people cooperate to make a particular decision or type of decision

an interactive, computer-based system which facilitates the solution of unstructured problems by a set of decision makers working together as a group consisting of a set of software, hardware, language components, and procedures that support a group of people engaged in a decision-related meeting

Characteristics of a GDSS

Special design:

Effective communication Group decision making

Ease of use Flexibility

Accommodate different perspectives Individuals names are not exposed

Anonymous input

Parallel communication

Characteristics of a GDSS

Decision-making support

Delphi approach: Decision makers are scattered around the globe Brainstorming: Say things as you think---think out loud Group consensus approach: The group reaches a unanimous decision (everybody agrees) Nominal group technique: Voting A trained meeting facilitator to help with sidetracking

Reduction of negative group behavior

Automated record keeping

Executive Information (Support) Systems

An executive information system (EIS), also known as an executive support system (ESS), is a technology designed in response to the specific needs of top-level managers and executives.

Executive Support Systems (ESS or EIS)

Internal Data External TPS/MIS data Data Financial data Dow Jones Office Internet systems news Modeling/ Standard analysis & Poors

EIS are:

Very user friendly Is supported by graphics Provides the capabilities of exception reporting (reporting only the results that deviate from a set standard) Provide drill down (investigating information in increasing detail). Analyse support Communications Office automation Intelligence support

ESS goes beyond EIS to include:

ESS - Expansion

ESS can be enhanced with:

Multidimensional analysis and presentation Friendly data access User-friendly graphical interface Imaging capabilities Intranet access E-mail Internet access Modeling Analyse support Communications Office automation Intelligence support

ESS goes beyond EIS to include:

Intelligent ESS saves an executive's time in conducting drill downs, exceptions, or identifying trends by automating these activities.

ISS - Artificial IntelligenceThe development of machines that exhib...


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