Lecture Outline 4
Transaction Systems and
Beyond
Text, p. 258+
Online vs Batch Processing
• P. 258
• Source documents (e.g., dr. lic. application
on paper) can be entered into a TPS as
they are handed-in OR
• Can be collected in a batch and later
entered as a batch
• Use online when customer needs
immediate notification of success or failure
of a transaction
Ways of entering data into TPS
• Manual: typed-in by hand
• Semi-automated: grocery checkout scan
OR ordering book on amazon.com (person
is still involved)
• Fully-automated: computer of the buyer
“talks” directly to computer of the seller
(EDI)
Transaction Processing Activities
• p. 258+
• TPSs capture and process data that
describes fundamental business
transactions
• Data collection, data editing, data
correction, data storage, data
manipulation, document production
– Make brief notes
Point-of-Sale Systems
• e.g., electronic cash registers
• for a retailing business [transaction
level]
• Can decrease inventory at check-out
• Data entered in various ways
– e.g. bar code scanning
• Quicker check-out procedures
• Decreased clerical costs
An Overview
• Of Transaction processing systems
(operational)
– and
• Management reporting systems (tactical)
Transaction Processing Sys.
TPSs are a special class of information system designed to
process business events and transactions
Architecture Components
• Source Documents – these contain the event or
transaction information to be processed by system
• Data Entry Methods
• Manual – a person entering a source document by hand
• Semiautomated – using a capture device to enter the source
document (e.g. a barcode scanner)
• Fully Automated – no human intervention, one computer
talks or feeds another computer (e.g. automatic orders from
inventory systems)
• Processing – transactions can be either:
• Online – processed individually in real-time
• Batch – grouped and processed together at a later time
Management Information System
• Usually tactical and sometimes also
strategic
• Provides managers and decision makers
with information to help achieve
organizational goals
– P. 295+; makes notes on types of outputs
from an MIS (297+)
System Architecture:
Management Information
System
Functional Area Info Systems
Functional Area Information Systems
designed to support a specific functional area (p. 274
bot
Supported Activities
The following functional organizations have systems to
support their operational and managerial activities
• Accounting
• Finance
• Human Resources
• Marketing
• Operations
Functional Area Systems
• - refer to specific areas of business:
finance, manufacturing, marketing, human
resources
• Can be operational, tactical and strategic
• Systems for each area are likely to have
their own database
System Description: Functional
Area Info Systems
System Examples: Functional
Area Info Systems
Finance Information Systems
• *Finance area: acquires and manages
cash for a business
• Acquire thru shares or loans
• Invest cash wisely
• Co must maintain liquidity
– Meet short term obligations
• Need to analyze considerable financial
info; see p. 301
Tactical systems in Finance
•
-
A BUDGETING SYSTEMS *L
plan revenues and expenses line-by-line
Can summarize in various ways
Can compare this year’s budget to last
year’s
- Can compare actual expenses vs
budgeted (get actuals from General ledger
System)
Tactical systems in Finance
• BUDGETING* (cont’d)
• Comparing budgeted to actuals allows for
variances analysis
• Eg. Current budgeted expenses, actual
expenses and variances by line item
• Eg. Projected expenses for each budget
line item for entire year based on
expenses incurred to date
Tactical systems in Finance
• BUDGETING* (cont’d)
• Spreadsheet-type systems are useful for
budgeting (ie. formulas)
• Can use last year’s budget as a base for
next year and maybe 5 years
• How are such system tactical? explain
Tactical systems in Finance
B. CAPITAL BUDGETING SYSTEMS *MC
- Provide help with planning acquisition
(disposal) of major plant assets that will be
used by the business during many years
- Provide outgoing and incoming cash for
the life of the asset
- Use assumptions
- Consider the time value of money (net
present value)
Tactical systems in Finance
• B. CAPITAL BUDGETING SYSTEMS
• Eg. Can help to decide whether to lease or
buy a new printer
• What computing is useful here?
Tactical systems in Finance
C CASH MANAGEMENT SYSTEMS *X
• Ensure that business has sufficient cash to
meet its needs
– For day-to-day operations
– For acquisition of long-term assets
• Important output is the cash flow report
– Can forecast cash flows for , say 6 months
– Flow= tl cash receipts – tl cash payments
Tactical systems in Finance
D. INVESTMENT MANAGEMENT
SYSTEMS *MC
- oversee organization’s investment in
stocks, bonds, and other securities
- Online databases provide immediate
updates for stock and bond prices
Tactical systems in Finance
INVESTMENT MANAGEMENT SYSTEMS
e.g. Value Screen inputs the current price of
each stock and calculates the gain or loss
the company’s investment portfolio would
generate if sold now
what computing is needed here?
Strategic systems in Finance
• Support very high-level managers
• Strategic systems relate to organizational
goals
• Often, such systems use internal data
(which may have originated in
organizational AIS) and external data (eg.
From online databases that contain
economic, social, demographic, etc, info)
Strategic systems in Finance
A FINANCIAL CONDITION ANALYSIS
SYSTEMS *MC
- Provide insightful analyses of financial
statements and data (e.g., ratios: current
ratio, debt:equity ratio)
- Online databases can allow for financial
analysis of competitors, suppliers, buyers
and other organizations)
Strategic systems in Finance
B. LONG RANGE FORECASTING
SYSTEMS *MC
-
May use both internal and external data
Apply statistical techniques
May use graphics
Analyze trends
Strategic systems in Finance
C. CORPORATE PLANNING SYSTEMS
*X
- Use data from past, like forecasting
systems
- More elaborate; contain simulation models
of various aspects of business
- Models must have valid assumptions