Module 2
Sarada Suresh
Assistant Professor
Department of Management
Christ Nagar College
System Concept
• A system is an orderly grouping of interdependent
components linked together according to a plan to achieve a
specific objective
Elements of a System
Characteristics of system
• Organization
• Interaction
• Interdependence
• Integration
• Central Objective
Types of Systems
• Physical or Abstract/Conceptual and Empirical
• Natural and Man Made System
• Social, People- Machine and Machine
• Open and Closed
• Adaptive and Non adaptive
• Deterministic and Probabilistic
• Permanent and Temporary
• Sub System and Super System
• Permanent and Temporary System
Types of Information Systems
Transaction Processing System
(TPS)
• A Transaction Processing System (TPS) is a type of information
system that collects, stores, modifies and retrieves the data
transactions of an enterprise.
• Designed to process routine business transactions
• Seeks time and cost efficiency by automating repetitive operations
in large volumes.
• e.g.; airline reservation systems, electronic transfer of funds, bank
account processing systems.
Transaction Processing Cycle
Features of TPS
• Rapid response – Fast performance with a rapid response time is critical. Transaction processing
systems are usually measured by the number of transactions they can process in a given period of
time.
• Continuous Availability – The system must be available during the time period when the users are
entering transactions. Many organizations rely heavily on their TPS. A breakdown will disrupt
operations or even stop the business.
• Data Integrity – The system must be able to handle hardware or software problems without
corrupting data. Multiple users must be protected from attempting to change the same piece of
data at the same time, for example two operators cannot sell the same seat on an airplane.
• Ease Of Use – Often users of transaction processing systems are casual users. The system should
be simple for them to understand, protect them from data-entry errors as much as possible, and
allow them to easily correct their errors.
Transaction Processing Modes
• There are two types of TPS:
• Batch Processing: Batch processing is where the information is collected and
stored as a batch but not processed immediately. Batch processing is useful for
enterprises that need to process large amounts of data using limited resources
• Eg: paying by Cheque
• Real-Time Processing: Each transaction is processed immediately, without the
delay of accumulating transactions into a batch.
• Eg:ATMs
Decision Making Process
Decision Support System(DSS)
• Helps the management in taking the business decisions (structured, semi structured and
unstructured problems). The decision-maker possess control throughout the decision
making process.
• Helps the executives in evaluation of the alternatives so that they may reach on an
effective decision.
• Decision Support System (DSS) is a specialized MIS designed to support an executives’
skills at all stages of decision making i.e.
• problem identification,
• selecting relevant data,
• picking the approach to be used in decision making, and
• evaluating the alternative courses of action.
Components of DSS
• Data Base
• Model Base
• User Interface
• User (Decision Maker)
Characteristics of a DSS
• Executive Decisions are the Focal Points: The data for the DSS and associated models
are organized around the executive’s decisions rather than around existing databases.
• Easy to Use: It has software that uses simple English commands rather than technical
computer commands. So, it support managers at various managerial levels.
• Interactive: A DSS allow the decision-maker to interact in a natural manner due to the
careful design of the user interface.
• Use and Control Rests with the User: The use and control of the DSS rests with the
user and not the central information management department.
• Flexible and Adaptable: The DSS is flexible and adaptable to change in the executive’s
style or in the external environment.
Types of DSS
• Communication driven DSS - to help users collaborate
• Data driven DSS – to query data bases to get specific answers for specific questions
• Document driven DSS – to search web pages and find documents on a specific set of
search terms
• Knowledge driven DSS - suggest or recommend actions to managers. Theses have
specialized problem-solving expertise. The "expertise" consists of knowledge about a
particular domain, understanding of problems within that domain, and "skill" at solving some
of these problems.
• Model driven DSS – help analyse decisions or choose between different options
• Web Based DSS – delivers decision support information or tools to managers through
various web browsers
Building DSS
Executive Information System
• Executive support systems are intended to be used by the senior
managers directly to provide support to non-programmed decisions in
strategic management.
• It provides senior managers with a system to analyse compare and track
trends to help manage the strategic direction. Top-level managers will
use this to make strategic long to medium term decisions.
• These information are often external, unstructured and even uncertain.
Exact scope and context of such information is often not known
beforehand.
Features of Executive Information
System
• Provides trend analysis, exception reporting and drill-down
capabilities.
• Summarizing, Filter, and obtain detailed data.
• Display graphs and reports from the business processes of an
organization or company.
Thank You
