Transaction Processing Systems

A transaction is a record of an event that signifies a business exchange

A transaction processing system is a basic business system that support the functions of

•Recording

•Monitoring

•Evaluating

the basic activities of the business

Fig. 13.1 Transaction Processing Systems

Examples of basic manufacturing/production systems are:

materials purchasing

receiving

shipping

process control

numerical control

equipment

quality control

labor costing

robotic systems

Examples of basic sales/marketing systems are: sales

telemarketing

order processing

point-of-sales systems

credit authorization

Figure 13.4 Amazon.com Order Processing System

Examples of basic finance/accounting systems are: accounts receivable

accounts payable

general ledger

payroll

cash management

loan processing

check processing

securities trading

Examples of basic human resource systems are: personnel record keeping

applicants tracking

positions listing

training and skills

benefits

Questions to ask

• Where does the system obtain its data?

• What does the system do with the data?

• What problems does the system solve?

• What differences does the system make?

Office Automation Systems

• Data work: use, manipulate, or disseminate information

• Knowledge work: create new information using judgment & creativity– Discipline/Principle/Profession/Certification

• Office work: coordinate & integrate workers from different functional areas

An office automation system is any application of information technology that increases the productivity of office workers

document management

word processing

desktop publishing

electronic communications

electronic scheduling

data management

project management

Figure 16.2 Four Functions of Management

Figure 16.4 Manager’s Time

3 roles of a manager

1. Interpersonal– figurehead, leader, liaison

2. Informational– monitor, spokesperson, disseminator

3. Decisional– entrepreneur, mediator, resource allocator,

negotiator

Management Support Systems

• MIS: summarize & report on the basic operations of a company

• DSS: provide data & models interactively to support semi-structured problem solving

• EIS: provide data from both internal & external sources to support unstructured problem solving

Figure 16.5 An MIS

Figure 16.7 An DSS

Figure 16.9 An ESS

Artificial Intelligence: the study of how to make computers to do things that require some level of intelligence:

•Learn/understand from experience

•Acquire & retain knowledge

•Respond quickly & successfully to new situations

•Solve problems

Expert Systems

• Solve problems that require expertise

• Use facts and reasoning (rules of thumb)

• Explain what it knows and its reasoning process

3 components:

• Knowledge base

• Inference engine

• User interface