Information System

within the OrganizationTransaction Processing

SystemEnterprise Resource

Planning Functional Information

System

Uses of Information System within the organization

Successful organizations large and small leverage available technologies to manage business activities and assist in making decisions

They use information systems to collect data and process it according to the needs of the analyst, manager or business owner

Businesses operate more efficiently by using varied information systems to interact with customers and partners, curtail costs and generate revenues

Information System in Business Operation

Transaction Processing SystemCustomer Relationship Management System

Business Intelligence SystemKnowledge Management System

Information System in Business Operation

Transaction Processing Systems

o Meet the data collection, storage, processing and outputting functionalities for the core operations of a business

o TPS information systems collect data from user inputs and then generate outputs based on the data collected

Transaction Process System

Transaction Processing System

An example of TPS system could be an online Air Ticket Booking System. In such a system, travelers select their flight schedule and favorite seats (the input), and the system updates the seats available list, removing those selected by the traveler (the processing)

The system then generates a bill and a copy of the ticket (the output)

TPS information systems can be based on Real-time or Batch processing, and can help business owners meet demand without acquiring additional personnel

Customer Relationship Management Systems

Synchronize sales and marketing efforts

It accumulate and track customer activities, including purchasing trends, product defects and customer inquiries

Allow customers to interact with companies for service or product feedback and problem resolutions

Customer Relationship Management System

Businesses may also use CRM systems internally as a component of their collaboration strategies

As such, CRM information systems allow business partners to interact with each other as they develop ideas and products

Collaboration can occur in real time even when business partners are in remote locations

Business Intelligence System BIS information systems may provide analyses

that predict future sales patterns, summarize current costs and forecast sales revenues

Business intelligence systems collect data from the various data warehouses in an organization and provide management with analyses according to lines of business, department or any breakdown that management desires

For example, financial institutions use BIS systems to develop credit risk models that analyze the number and extent of lending or credit given to various sectors.

These systems may use various techniques and formulas to determine the probability of loan defaults

Knowledge Management System

Organize and dissect knowledge and then redistribute or share it with individuals of an organization

The purpose of these information systems is to bring innovation, improve performance, bring integration and retain knowledge within the organization

Although KMS information systems are typically marketed to larger enterprises, small businesses can also benefit from harvesting knowledge

KMS information systems serve as a central repository and retain information in a standard format

These systems can help business owners maintain consistency and enable speedy responses to customer and partner inquiries

Models of Transaction Processing

1. Batch ProcessingBatch processing is execution of a

series of programs (jobs) on a computer without manual intervention

Several transactions, called a batch are collected and processed at the same time

The results of each transaction are not immediately available when the transaction is being entered; there is a time delay

Batch ProcessingIn early days computer work was

given on punch cards and then these punch cards behave as input to the computer. These jobs or batch jobs were then executed by the computer one by one

So that computers were called as batch computers or batch systems

The work done by batch systems are in parts i.e. one job is processed then another job in the queue is processed and so on

Batch Processing System Diagram

Best practice in using batch systems:Used by large organizations and

also large jobs are done in sequence by the system

So it is best practice to divide the big job into small parts and run them so it is easy to debug the job when error comes

You can also set timer on computer for each job so you can check and interact with job to check and debug errors

Examples of batch systems1.Payroll system

Batch systems are ideal for making payrolls. The salaries of employees can be printed at the end of month by the batch systems, So the statements can be made easy by using batch systems2.Bank statements

At the end of month the bank makes statements for each account holder. So these bank statements can be made easily by batch systems at the end of month

Advantages of Batch systemsRepeated jobs are done fast in batch

systems without user interaction

You don’t need special hardware and system support to input data in batch systems

Best for large organizations but small organizations can also benefit from it

Batch systems can work offline so it makes less stress on processor

Advantages of Batch systemsSharing of batch system for

multiple usersThe idle time batch system is

very lessYou can assign specific time for

the batch jobs so when the computer is idle it starts processing the batch jobs i.e. at night or any free time

The batch systems can manage large repeated work easily

Disadvantages of Batch systemsComputer operators must be

trained for using batch systems

It is difficult to debug batch systems

Batch systems are sometime costly

If some job takes too much time i.e. if error occurs in job then other jobs will wait for unknown time

Models of Transaction Processing

2. Real-time processingReal time systems attempt to

guarantee an appropriate response to a stimulus or request quickly enough to affect the conditions that caused the stimulus

Each transaction in real-time processing is unique; it is not part of a group of transactions

Real-Time Processing Advantages

Making the switch to real-time processing can provide your business with a number of advantages

Real-time processing means the data will be available to everyone in real-time, your business will require fewer resources to sync the system, reduce the amount of paper used and improve the amount of uptime for your system

Real-Time Processing Advantages

Because all the data enters into the system immediately, you will be able to monitor what is happening within your business instead of waiting until the following day to discover a problem that could have been an easy fix if it had been identified immediately

Your team will be able to see errors as they happen and take care of them right away to improve the customer experience with immediate billing and help your business run more smoothly by increasing productivity and keeping closer track of inventory

Which Data Requires Real-Time Processing?

While there is some data that can still use the batch processing, much of the data your business uses can benefit from real-time processing instead

Any data that is valuable to your

business’s operations should be updated in real-time so it is always available when anyone needs it. This allows businesses to function more effectively

For instance, you can monitor a sales promotion as it is happening and make adjustments based on the trends you identify through your monitoring

Which Data Requires Real-Time Processing?

Increase in the use of eCommerce, customers expect this type of real-time interaction with online retailers

They don’t want to wait until the next day to see these transactions appear on their bank or credit card statements. They want confirmation the purchase was completed right away

Which Data Requires Real-Time Processing

Ecommerce has become important for all businesses today because of the urgency many consumers now feel. With the use of real-time processing for your systems, you will be able to increase the level of customer satisfaction and give your customers what they expect from an online shopping experience

Your business will be able to remain competitive, as well as offer your customers new features and experiences you wouldn’t otherwise be able to offer with batch processing. In the right situation, real-time processing gives your customers exactly what they desire

Transaction Processing System Features

Performance 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.

Transaction Processing System Features

Ease of useThe 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

Modular growthThe system should be capable of growth

at incremental costs, rather than requiring a complete replacement. It should be possible to add, replace, or update hardware and software components without shutting down the system

Enterprise Resource Planning (ERP) System

A business management software— usually a suite of integrated applications—that a company can use to collect, store, manage and interpret data from many business activities, including:

Product planning, costManufacturing or service delivery

Marketing and salesInventory managementShipping and payment

Enterprise Resource Planning (ERP) System

ERP provides an integrated view of core business processes, often in real-time, using common databases maintained by a database management system

ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll

Enterprise Resource Planning (ERP) System

The applications that make up the system share data across the various departments (manufacturing, purchasing, sales, accounting) that provide the data

ERP facilitates information flow between all business functions, and manages connections to outside stakeholders

Characteristics of ERP System

An integrated system that operates in (or near) real time without relying on periodic updates[citation needed]

A common database that supports all applications

A consistent look and feel across modules

Installation of the system with elaborate application/data integration by the Information Technology (IT) department, provided the implementation is not done in small steps

ERP System

Functional Information SystemBased on the various business

functions such as Production, Marketing, Finance and Personnel

Financial Information System:A sub-system of organizational

management information system. This sub-system supports the decision-making process of financial functions at the level of an organization

Functional Information SystemMarketing Information System:This sub-system of management

information system provides information about various functions of the marketing system of an organization

Marketing is another functional area of the business organization, which is engaged in marketing (selling) of its products to its customers

Functional Information SystemProduction /manufacturing Information SystemManufacturing or production

information system provides information on production /operation activities of an organization and thus facilitates the decision-making process of production managers of an organization

Human Resources Information System This functional information system supports the

functions of human resource management of an organization. The human resource management function, in its narrow sense, it also known as personnel management .The function involves:o Manpower planningo Staffingo Training and developmento Performance evaluation, ando Separation activities