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 a business. ? Objective: to store/capture, process & update records about business operations, to produce documents i.e. Purchase Order, Sales Order, etc.. E.g Sales order system
Item code qty amount Calculate Sales amout Sales Invoice

 . Cont Transaction Processing Systems (TPS) ? Routine activities: E.g when buying goods from supermarket, withdrawing money from ATM, making a flight reservation at an airlines office.

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

Batch Processing VS Online Transaction Processing (OLTP)

? transactions that are accumulated over a period of time ? delay result/feedback ? online transaction realtime ? transactions are processed immediately ? instant feedback/result ? e.g airline reservation

An Overview of TPS
Documents & Reports Invoice Sales Report Customer List Inventory List

Processing

Customer Orders Databases

Customer File Purchasing File Supplier file Inventory File

TPS

Business operation

TPS

Updated database

M I S

Operational database

? Advantage: Efficient at keeping records e.g sales records ? Disadvantage: cannot extract enterprise-wide information e.g from several different departments. cannot generate ad hoc request/inquiry i.e. cannot meet the needs of middle and higher level management.

Management Information System (MIS) ? objective:- to provide the Right information to the Right people in the Right format and at the Right time. ? focus on doing the Thing Right i.e efficiency ? builds on a TPS by integrating various functional areas.

MIS
Reports

DSS
MIS Application databases ESS

Updated database

ES

Corporate database

Others database

? 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 produced when a situation is unusual e.g stock level is below re-order level

? Advantage: provides ad hoc inquiries able to extract data selectively from different functional areas(files) provides information for medium and higher level management.

? Disadvantage: Not able to produce future-oriented information i.e. predicting sales trends.

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 support problem-specific decision making & problem solving. ? User friendly system uses graphical interface i.e. menu, icons, push buttons ? Focus effectiveness of decision-making, i.e doing the Right Thing meeting the business goals.

? Advantage:? produces ad-hoc reports ? flexible and adaptable suitable to any users style and decision environment ? User-friendly system

? Supports decision-making at the tactical and strategic levels.

DSS, ESS, ES
Reports

DSS
Updated database MIS Application databases

ESS ES

Corporate database

Others database

Executive Support Systems (ESS)

? specialized DSS designed to meet the needs of 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 the company. ? 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.

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 can understand 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 recognition i.e. stock market spot market trend

Expert systems an interactive software that mimics human experts i.e. give opinion, advice, recommendations. E.g loan approval, tax experts Virtual Reality (VR) users become fully immersed in an artificial, 3-d world.

Decision levels

ESS ES DSS MIS TPS

Strategic management Tactical management Business Operations

- End of Chapter3-