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Business Information Systems

Chapter 3 - Lecture Notes

(Chapter 9,10,11 of text book)

Contents

Transaction Processing Systems (TPS) Enterprise Resource Planning (ERP)

Management Information Systems (MIS)

Decision Support Systems (DSS) Executive Support Systems (ESS) Specialized Business Information Systems

E-Commerce systems (Week-12)

Transaction Processing Systems (TPS)

? support the day-to-day activities (routine) of abusiness.

? Objective:-

to store/capture, process & update records aboutbusiness operations,

to produce documents i.e. Purchase Order, Sales

Order, etc..

E.g Sales order system

Item codeqty

amount

CalculateSales amout

Sales Invoice

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. Cont

Transaction Processing Systems (TPS)

?Routine activities:-

E.g when buying goods from supermarket,

withdrawing money from ATM, making a f lightreservation at an airlines office.

?a.k.a Data Processing Systems (DPS)

Batch Processing VS Online TransactionProcessing (OLTP)

? transactions that areaccumulated over aperiod of time

? delay result/feedback

? online transaction realtime

? transactions areprocessedimmediately

? instantfeedback/result

? e.g airline reservation

An Overview of TPS

ProcessingDocuments

&

Reports

Databases

Customer Orders

Customer FilePurchasing FileSupplier fileInventory File

InvoiceSales ReportCustomer ListInventory List

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TPS

Businessoperation TPS

Operationaldatabase

Updateddatabase

MIS

? Advantage:-

Efficient at keeping records e.g sales records

? Disadvantage:-

cannot extract enterprise-wide information e.gfrom several different departments.

cannot generate ad hoc request/inquiry i.e.cannot meet the needs of middle and higherlevel management.

Management Information System (MIS)

? objective:- to provide the Right informationto the Right people in the Right format andat the Right time.

? focus on doing the Thing Right i.eefficiency

? builds on a TPS by integrating variousfunctional areas.

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MIS

Updateddatabase

MIS

Corporatedatabase

Othersdatabase

Applicationdatabases

DSS

ESS

ES

Reports

? Input: TPS from various functional areas.

? Output:

Summary report i.e. daily, weekly,

Periodically report i.e. daily, weekly,

Demand report i.e. on request only

Exception report i.e. automatically producedwhen a situation is unusual e.g stock level isbelow re-order level

? Advantage:-

provides ad hoc inquiries

able to extract data selectively from differentfunctional areas(files)

provides information for medium and higherlevel management.

? Disadvantage:-

Not able to produce future-orientedinformation i.e. predicting sales trends.

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Types of MIS

? Marketing MIS

? Financial MIS

? Manufacturing MIS

? Human Resource MIS

Decision Support System (DSS)

? is an organized collection of people, procedures,software, database, and devices used to supportproblem-specific decision making & problemsolving.

? User friendly system uses graphical interfacei.e. menu, icons, push buttons

? Focus effectiveness of decision-making, i.edoing the Right Thing meeting the businessgoals.

? Advantage:-

?produces ad-hoc reports

? flexible and adaptable suitable to anyusers style and decision environment

?User-friendly system

? Supports decision-making at the tactical andstrategic levels.

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DSS, ESS, ES

Updateddatabase

MIS

Corporatedatabase

Othersdatabase

Applicationdatabases

DSS

ESS

ES

Reports

Executive Support Systems (ESS)

? specialized DSS designed to meet the needsof senior management.

? serve to indicate :-

important issues to the organization e.g. BPR

new directions the company may take

help executives to monitor the progress of thecompany.

? performs sophisticated data analysis, flexibility &comprehensive communication abilities.

? provide an overall vision, strategic planning,organizing, staffing & labor.

? Advantage:

understand a business situation quickly

allows management to access data rapidly

able to predict e.g future sales trends

interactive and user-friendly system.

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Specialized BIS

? Artificial Intelligence (AI)

a system takes on the characteristics of

human intelligence. include elements:

? Robotics

? Vision systems robots can store and process

visual images (can see images)

? Natural language processing system that canunderstand languages i.e Spanish, English,

Mandarin

. Cont

? Learning systems able to learn from past

mistakes and experiences i.e. playing games,making business decisions

? Neural Networks trends or patterns recognitioni.e. stock market spot market trend

Expert systems an interactive software thatmimics human experts i.e. give opinion,advice, recommendations. E.g loan approval,tax experts

Virtual Reality (VR) users become fullyimmersed in an artificial, 3-d world.

Decision levels

Business Operations

Tactical

management

Strategic

management

TPS

ESS

ES

DSSMIS

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- End of Chapter3-