Kinds of...n System.docx

Topics: Decision theory, Transaction processing, Information systems Pages: 5 (1213 words) Published: December 26, 2013
SESSION II
KINDS OF INFORMATION SYSTEM
Transaction Processing System
A TPS records and manages all the data collected or generated by an organization in its day to day operations. A TPS does not generate information. The data from a TPS is mostly used as input to other information systems. Examples:

Orders, invoices, wages, employee records.
Is the process of dividing a body of data into blocks and spreading the data blocks across several partitions on several hard disks.

Is a system that captures, enters stores, retrieves and processes the relevant details of business events, and generates the information/document necessary for running the organization and interfacing with external entities, such as customers.

Transaction - is the process of dividing a body of data into blocks and spreading
the data blocks across several partitions on several hard disks.

Features of Transaction Processing Systems

1. Rapid response – fast performance with rapid results
2. Reliability – well designed backup and recovery with a low failure rate 3. Inflexibility – treat every transaction equally. It may be used many times each day which means it has to be precise and inflexible 4. Controlled processing – maintain specific requirements for the roles and responsibilities of different employees.

Types of TPS

Batch processing is where the information is collected as a batch and then processed later on. An example of batch processing is paying by cheque. Batch processing is useful for enterprises that need to process large amounts of data using limited resources Batch Processing system Real Time Processing is where all details of the transaction are recorded and changed at the time as it occurs. Examples of real time processing are ATM’s.

The importance of data in transaction processing:
Data security is important as data is often confidential or has a commercial value, therefore, it needs to be protected from unauthorized access. Data accuracy means that the data is correct and that the data is up to date (current) Data integrity describes the reliability of data. This will include statements of data currency, correct entry of data and accuracy of the data.  TPS serve two purposes.

1. To support day-to-day, routine operations by being made accessible to those parts of the organization (as well as to external entities) where they are needed. 2. To feed the management reporting system and produce performance reports about the effectiveness and efficiency of the operations.

The computer system mediating between the humans and physical reality in an inventory application.

Updates brought about by a transaction are of three types:
Adding a new record, such as when a new customer signs up
Changing an existing record, such as changes in credit available for a customer when that customer makes new purchases or returns already purchased products Deleting a record, such as when a product is discontinued

TPSs are characterized by
Large amounts of input/output
Large number of users
Huge storage requirements
Low computational complexity
Fast input/output as well as processing capabilities
A high degree of concern for potential security related problems A high degree of concern for reliability and fault tolerance.

Five Stages of Transaction Processing
Data Entry
Processing
Database Maintenance
Document And Report Generation
Inquiry Processing

Management Information Systems
Provide information in the form of reports and displays to managers and many business professionals to support business decision making. A management information system is an information system that uses the data collected by the transaction processing system and uses this data to create reports in a way that managers can use it to make routine business decisions in response to problems. Some of the reports that this information systems creates are summary, exception and ad hoc reports. All...
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