Transaction Processing System

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Transaction processing system (TPS):
A TPS collects and stores information about transactions, and controls some aspects of transactions. A transaction is an event of interest to the organisation. e.g. a sale at a store.

A TPS is a basic business system. It:
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is often tied to other systems such as the inventory system which tracks stock supplies and triggers reordering when stocks get low; serves the most elementary day-to-day activities of an organisation; supports the operational level of the business; supplies data for higher-level management decisions (e.g. MIS, EIS); is often critical to survival of the organisation; mostly for predefined, structured tasks; can have strategic consequences (eg airline reservation system); usually has high volumes of input and output; provides data which is summarised into information by systems used by higher levels of management; need to be fault-tolerant.

On-line transaction processing: A transaction processing mode in which transactions entered on-line are immediately processed by the CPU.

Sub-species of TPS:
Manufacturing and production systems: Systems that supply data to operate, monitor and control the production process. e.g. purchasing, receiving, shipping, process control, robotics, inventory systems, scheduling, engineering, operations, quality control, resource management etc.

e.g. A system in a factory that:
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gets information from measuring samples of products does statistical analysis of samples shows when operators should take corrective action

Sales and Marketing systems: Systems that support the sales and marketing function by facilitating the movement of goods and services from producers to customers. Examples:
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sales support - keep customer records, follow-up telemarketing - use phone for selling order processing - process orders, produce invoices, supply data for sales analysis and inventory control point-of-sale - capture sales data at cash register often by scanner customer credit authorisation - advise on credit to be allowed to customer. Example: A Store's Sales System would: automatically record and total purchase transactions and prints out a packing list improve customer service maintain customer data

Finance & Accounting Systems: Systems that maintain records concerning the flow of funds in the firm and produce financial statements, such as balance sheets and income statements.e.g. for Budgeting; General Ledger; Billing: Cost Accounting, Accounts Receivable / Payable; Funds Management Systems, Payroll. They were among the earliest systems to be computerised. Examples of financial systems: cash management, loan management, check processing, securities trading. Example: Visa's Credit Card payment system.

Human Resources System: Systems that deal with recruitment, placement, performance evaluation, compensation, and career development of the firm's employees. Examples: personnel record keeping, applicant tracking, positions, training and skills, benefits.

Decision support system (DSS):
Helps strategic management staff (often senior managers) make decisions by providing information, models, or analysis tools. For support of semistructured and unstructured decisions (structured decisions can be automated). Used for analytical work, rather than general office support. They are flexible, adaptable and quick. The user controls inputs and outputs. They support the decision process and often are sophisticated modelling tools so managers can make simulations and predictions. Their inputs are aggregate data, and they produce projections. An example job for a DSS would be a 5 year operating plan.

Management information system (MIS) :
Condenses and converts TPS data into information for monitoring performance and managing an organisation. Transactions recorded in a TPS are analyzed and reported by an MIS. They have large quantities of input data and they produce summary reports as output. Used by middle managers. An example is an annual budgeting system.

Executive information system (EIS):
Also known as an Executive Support System (ESS), it provides executives information in a readily accessible, interactive format. They are a form of MIS intended for top-level executive use. An EIS/ESS usually allows summary over the entire organisation and also allows drilling down to specific levels of detail. They also use data produced by the ground-level

TPS so the executives can gain an overview of the entire organisation. Used by top level (strategic) management. They are designed to the individual. They let the CEO of an organisation tie in to all levels of the organisation. They are very expensive to run and require extensive staff support to operate.

Office automation system (OAS) :
OAS provides individuals effective ways to process personal and organisational data, perform calculations, and create documents. e.g. word processing, spreadsheets, file managers, personal calendars, presentation packages They are used for increasing personal productivity and reducing "paper warfare". OAS software tools are often integrated (e.g. Word processor can import a graph from a spreadsheet) and designed for easy operation. OAS Subspecies: Communication systems: helps people work together by sharing information in many different forms Teleconferencing (including audioconferencing, computer conferencing, videoconferencing), electronic mail, voice mail, fax Groupware system: helps teams work together by providing access to team data, structuring communication, and making it easier to schedule meetings. For sharing information, controlling work flows, communication/integration of work

KNOWLEDGE WORK SYSTEMS (KWS): are used by technical staff. KWS use modelling functions to convert design specifications into graphical designs. They may include computer-aided design/manufacture (CAD/CAM).

Expert Systems Expert system (noun): "a computer system or program that uses artificial intelligence techniques to solve problems that ordinarily require a knowledgeable human. The method used to construct such systems, knowledge engineering, extracts a set of rules and data from an expert or experts through extensive questioning. This material is then organized in a format suitable for representation in a computer and a set of tools for inquiry, manipulation, and response is applied. While such systems do not often replace the human experts, they can serve as useful adjuncts or assistants. Among some of the successful expert systems developed are INTERNIST, a medical diagnosis tool that contains nearly 100,000 relationships between symptoms and diseases, and PROSPECTOR, an aid to geologists in interpreting mineral data." (http://www.encyclopedia.com/articles/04322.html) Expert systems imitate human experts in many different fields of expertise. Such systems contain rules (such as decision tables) that help a human answer expert questions. This is a classic example of how deskilling can affect people: imagine you are an expert rock identifier and people from around the world treat you like a living national treasure because of your brilliant ability to identify rocks. One day, a system is built that contains all the rules you intuitively use to make your rock identification decisions. By answering a few simple questions presented by the expert system, a human can identify a rock just as well as you can. Expert systems are built with decision-making rules, and they can ask humans a series of questions to narrow down the correct answer. One early and influential expert system was MYCIN, a disease diagnosis system. Advantages of expert systems:
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The computer can store far more information than a human. The computer does not 'forget', make silly mistakes or get drunk when it is most needed. Data can be kept up-to-date. The expert system is always available 24 hours a day and will never 'retire'. The system can be used at a distance over a network.

Expert systems are computer application programs that take the knowledge

of one or more human experts in a field and computerize it so that it is readily available for use. The human experts do not need to be physically present to accomplish a specialized project or task. Expert systems are only designed to be “expert” in a very narrow and specific task or subject field. They contain the acquired expert knowledge and try to imitate the expert’s evaluation processes to offer a conclusion. An advantage of an expert system is that it may include the knowledge of many experts in one specific field. Expert systems usually contain two components: a knowledge base and an inference engine program, enabling it to suggest conclusions. The knowledge base is programmed in an IF ... THEN logical rules structure. Such a structure is a series of IF conditions that, if met, THEN a specific result may be concluded. An example would be: IF the animal is a bird it does not fly it swims it is black and white THEN it is a penguin

The expert system rules out options with each question until there remains an option with high probability. The rules and questions, of course, are provided by expert humans in the first place. Expert systems can be used for many different types of knowledge: here are a few examples

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