Explain each system and include the features, advantages and
disadvantages. Identify in which level it operates. Provide diagram where
necessary.
- Software and example (picture)
Transaction Processing Systems (TPS)
It is a set of information which processes the data transaction in
database system that monitors transaction programs.
- Consist of computer hardware and software hosting a transaction-oriented application that performs the routine transactions necessary to conduct business.
Example:
Systems that manage sales order entry, airline reservations, payroll, employee records, manufacturing and shipping
-
Receipt in shop
-
Transaction –
banking
-collect, store, modify and retrieve the transactions
-Transaction is an
event that generates or modifies data to be stored in an information system
-Examples: Point of
Sale, credit card payments,
-Designed in
conjunction with the organisation's procedures
-Main processes are collecting and storing
Features:
- Performance
- Reliability
- Consistency
Four important features:
-Fast performance is critical
-Turnaround time from transaction input to the production output
must be a few seconds or less
-Breakdowns disturb operations
-Failure rates must be low
-If failure occurs, recovery must be quick and accurate
-Every transaction must be processed in the same way
-Flexibility results in too many opportunities for non standard
operations, resulting in problems due to different transaction data
-Must support an organisation's operations
-If roles and responsibilities are allocated, the TPS should
maintain these requirements
-TPS systems reduce costs by reducing number of times data must be
handled
-Two types, Batch and real time
Advantage:
-Batch or real-time processing available
-Reduction in processing time, lead time and order cycle time
-Reduction in inventory, personnel and ordering costs
-Increase in productivity and customer satisfaction
- Anyone use it anywhere
Disadvantage:
-High setup costs
-Lack of standard formats
-Hardware and software incompatibility (inda compatible)
Level:
-
Operational
Management
Management Information Systems (MIS)
It is a computerized database of financial information organized
and programmed in such a way that it produces regular reports on operations for
every level of management in a company. It is usually also possible to obtain
special reports from the system easily.
-
Allowance
-
Balance in
account
Characteristics:
- System approach:
MIS follows the system approach, which implies a step by step approach to
the study of system and its performance in the light of the objective for
which it has been constituted. It means taking an inclusive view at
sub-systems to operate within an organization.
- Management-oriented:
The management-oriented characteristic of MIS implies that top-down
approach needs to be followed for designing MIS. A top-down method says
the initiation of system development determines management requirements as
well as business goals. MIS implies the management dynamically to the
system development towards the completion of management decision.
- As per requirements:
The design and development of MIS should be as per the information
required by the managers. The required design and development information
is at different levels, viz., strategic planning, management control and
operational control. It means MIS should cater to the specific needs of
managers in the hierarchy of an organization.
- Future-oriented:
The design and development of MIS should also be future purpose so that
the system is not restricted to provide only the past information.
- Integrated:
A complete MIS is a combination of its multiple sub-components to provide
the relevant information to take out a useful decision. An integrated
system, which blends information from several operational areas, is a
necessary characteristic of MIS.
- Common data flows:
This concept supports numerous basic views of system analysis such as
avoiding duplication, combining similar functions and simplifying
operations. The expansion of common data flow is a cost-effectively and
logical concept.
- Long-term planning:
MIS should always develop as a long term planning because it involves
logical planning to get success of an organization. While developing MIS,
the analyst should keep future oriented analysis and needs of the company
in mind.
- Relevant connection of
sub-system planning:
The MIS development should be decomposing into its related sub-systems.
These sub-systems must be meaningful with proper planning.
- Central database:
it contains data in tabular form. The data base is responsible to
operations like insertion, deletion, updation of records. This database
covers information related to inventory, personnel, vendors, customers,
etc. the data stored in the database.
Advantage:
Helps to achieve a higher level of efficiency: Managers have the
information needed to identify a company's strengths and weaknesses.
Improves the quality of decisions: Better availability of
information reduces uncertainty and lets managers make more rational decisions
based on reliable data.
Promotes better communications between departments in a workplace: When managers, department
heads and employees are sharing the same information, there is better
communication between them to identify problem areas and find mutually
agreeable solutions.
Provides a platform to explore different scenarios for various
alternatives and economic environments: Management is able to explore various alternatives to see
the possible results before making decisions and commitments.
Improves employee productivity: Employees are more productive because they don't have to
spend time gathering the data that management wants. A well-designed MIS will
gather all the data without any more input from employees.
Strengthens a company's competitive advantage: Running a more efficient
business by reducing and eliminating weaknesses and non-performing areas
increases a company's competitive advantage over its rivals.
Reveals more data about customers: With more data about the
needs of customers, management is better able to improve customer service and
design more effective marketing and promotional campaigns.
Disadvantage:
Integrated System
A guiding principle of MIS is that all computer-related business
processes work as a single integrated system. An integrated system allows for
improved communication among executives, managers, department heads and
employees. For example, a fully integrated MIS system gives the same data
framework to the sales department as it provides to the manufacturing plant.
The shared data could lead to adjustments in the manufacturing plant to align
production with sales goals.
Better Decisions
The improved communication MIS provides to all levels of the
business improves the decision-making skills of those in charge. The old saying
"knowledge is power" applies when business owners use the data
gathered in their MIS applications to make smarter decisions. For example, a
business owner checks his MIS system and sees that his supply of components is
not sufficient to meet his production goals. The owner can then decide either
to order more components or to lower his production targets.
Data Quality Issues
One of the problems with an MIS framework is that the quality of
the system depends largely on the quality of its data. If the data is
insufficient, incorrect or misplaced, the decisions that managers make based on
that data can be faulty. For example, a business owner finds a client order of
100,000 units in the MIS system. He orders additional components from his
suppliers to meet that order. However, the actual order was only for 10,000
units. The owner unwittingly over-orders the components, costing the company
thousands of dollars.
Security Issues
Another issue surrounding MIS processes involves data security.
Hackers, identity thieves and corporate saboteurs target sensitive company
data. Such data can include vendor information, bank records, intellectual
property and personal data on company management. The hackers distribute the
information over the Internet, sell it to rival companies or use it to damage
the company's image. For example, several retail chains were targeted recently
by hackers who stole customer information from their MIS systems and
distributed Social Security numbers and credit card data over the Internet.
Level:
-
Tactical
Management
Decision Support Systems (DSS)
It is a computerized program used to support determinations,
judgments, and courses of action in an organization or a business.
-
It is a
computer- based information system that can be used to make some decision-making
activities
For example car loan, kalau kitani good payer then good performance, they have chance to loan again. But if bad payers, they will give chanrges and boleh kana wanted.
-
Characteristics:
1. DSS are designed specifically to facilitate decision processes,
2. DSS should support rather than automate decision making, and
3. DSS should be able to respond quickly to the changing needs of decision
makers.
Advantage:
- Improves
performance and effectiveness of the user
- Allows
for faster decision-making
- Reduces
the time taken to solve problems
- These
combine to save money!
- Has
been seen to improve collaboration and communication within groups
- Reduces
training times because the experience of experts is available within the
programs algorithms
- Provides
more evidence in support of a decision
- May
increase decision-maker satisfaction
- Providing
different perspectives to a situation
- Helps
automate various business systems
Disadvantage:
- Too
much emphasis/control given to the machines.
- May
reduce skill in staff because they become dependent on the computers
- Reduction
in efficiency because of information overload
- Shift
of responsibility - easy to blame computer!
- Disgruntled
employees who feel they are now only doing clerical work
- False
sense of being objective - humans still feed information in and decide how
exactly to process it.
Level:
Expert Systems (ES)
It is a knowledge based information system that uses its knowledge
about a specific, complex application area to act as an expert consultant to
end users.
It is a knowledge-based system that employs knowledge about its
application domain and uses an inferencing (reason) procedure to solve problems
that would otherwise require human competence or expertise. The power of expert
systems stems primarily from the specific knowledge about a narrow domain
stored in the expert system's knowledge base.
The expert systems are the computer applications developed to
solve complex problems in a particular domain, at the level of extra-ordinary
human intelligence and expertise.
Characteristics:
- High
performance
- Understandable
- Reliable
- Highly
responsive
The Highest Level of Expertise: The expert system offers the highest level of expertise. It
provides efficiency, accuracy and imaginative problem-solving.
Right on Time Reaction: An Expert System interacts in a very reasonable period of time
with the user. The total time must be less than the time taken by an expert to
get the most accurate solution for the same problem.
Good Reliability: The expert system needs to be reliable, and it must not make any
a mistake.
Flexible: It is vital that it remains flexible as it the is possessed by
an Expert system.
Effective Mechanism: Expert System must have an efficient mechanism to administer the
compilation of the existing knowledge in it.
Capable of handling challenging
decision & problems: An expert system is capable of
handling challenging decision problems and delivering solutions.
Advantage:
- Provide
answers for decisions, processes and tasks that are repetitive
- Hold
huge amounts of information
- Minimize
employee training costs
- Centralize
the decision making process
- Make
things more efficient by reducing the time needed to solve problems
- Combine
various human expert intelligences
- Reduce
the number of human errors
- Provide
strategic and comparative advantages that may create problems for
competitors
- Look
over transactions that human experts may not think of
Disadvantage:
- No
common sense used in making decisions
- Lack
of creative responses that human experts are capable of
- Not
capable of explaining the logic and reasoning behind a decision
- It
is not easy to automate complex processes
- There
is no flexibility and ability to adapt to changing environments
- Not
able to recognize when there is no answer
Example:
· MYCIN: It was based on
backward chaining and could identify various bacteria that could cause acute
infections. It could also recommend drugs based on the patient's weight.
·
DENDRAL: Expert system used for
chemical analysis to predict molecular structure.
·
PXDES: Expert system used to
predict the degree and type of lung cancer
·
CaDet: Expert system that
could identify cancer at early stages
Level:
Science - No management (System/Computer leveled)
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