Types of Information System – Transaction Processing Systems (TPS)

1. Types of Information System – Transaction Processing Systems (TPS) 10th October 2011

2. Interdependence between Organisations and Information Technology

3. Meeting Business Objectives • Many organisations rely on information systems • Very small businesses often rely on non-IT based information systems • E.g. Local Newsagent, Butcher, etc • However, contemporary E-Commerce are becoming increasingly popular – e.g. Ebay Sellers • Larger organisations most often rely on complex IT Information Systems. They often employ many different types of IT based IS

4. Meeting Business Objectives • Many Business Objectives • Many different agendas depending on the stakeholder • E.g. Upper levels of management will have different concerns than lower levels of management; Similarly operational staff will have different concerns again. • Different IS serve different objectives • Whether IT or non-IT based, many different IS are used within a given organisation

5. Different Types of IS • Transaction Processing Systems (TPS) • Management Information Systems (MIS) • Executive Information Systems (EIS) • Decision Support Systems (DSS) • Expert Systems • Communication & Collaboration Systems • Office Automation Systems

6. Transaction Processing Systems (TPS) • A Transaction Processing System (TPS) performs and records the daily routine transactions necessary to conduct business • TPS process business transactions such as orders, employee timesheets, payments, reservations, and so on • They capture and process data involved in business transactions

7. TPS - ATM Example • Automated Teller Machine (ATM) • Captures and processes data involved when you interact with it via your card • Various steps involved when engaging in a transaction with the ATM • You must have a valid ATM card • You must have the correct password • If you have the correct password, you can then get access to services such as withdrawing cash, topping up mobile phone credit, check balance • From this example, what do you think are the most important aspects of a transaction?

8. TPS – PayRoll Example A TPS for payroll processing captures employee payment transaction data (such as a time card). System outputs include online and hard-copy reports for management and employee paychecks. Figure 2-2

9. Transaction Processing Systems (TPS) • Examples

10. TPS • Why create a TPS? • Allow you to meet business objectives • Capture and process data that is needed for other information systems in the organisation. By capturing transaction data and giving it meaning you can create useful information! • Example: Google Analytics

11. Example of Google Analytics

12. Example Google Analytics • Each time an internet user logs onto a website that has Google Analytics installed, data is captured. • In essence, it is a type of transaction processing system. Each time you interact it captures and stores data about that activity. • Why is this useful?

13. Using data from a TPS • http://www.ted.com/talks/hans_rosling_shows_the_best_stats_you_ve_ever_seen.html

14. TPS • Using your own example of a TPS or one the examples discussed earlier • Discuss how the organisation might be able to use that information

15. How Management Information Systems Obtain Their Data from the Organization’s TPS In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting system at the end of the time period. Managers gain access to the organizational data through the MIS, which provides them with the appropriate reports. Figure 2-3