Systems and Technologies

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:

• Rapid response

-Fast performance is critical

-Turnaround time from transaction input to the production output must be a few seconds or less

• Reliability

-Breakdowns disturb operations

-Failure rates must be low

-If failure occurs, recovery must be quick and accurate

• Inflexibility

-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

• Controlled processing

-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:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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:

-          Strategic Management

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:

1. Provide answers for decisions, processes and tasks that are repetitive
2. Hold huge amounts of information
3. Minimize employee training costs
4. Centralize the decision making process
5. Make things more efficient by reducing the time needed to solve problems
6. Combine various human expert intelligences
7. Reduce the number of human errors
8. Provide strategic and comparative advantages that may create problems for competitors
9. Look over transactions that human experts may not think of

                                  

Disadvantage:

1. No common sense used in making decisions
2. Lack of creative responses that human experts are capable of
3. Not capable of explaining the logic and reasoning behind a decision
4. It is not easy to automate complex processes
5. There is no flexibility and ability to adapt to changing environments
6. 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)

References:

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