TABLE OF CONTENTS

1. Objective of the Reports

2. Management Information System

3. Transaction Processing System

4. Decision Support System

5. Executive information System

6. Results/Discussion/Conclusion

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7. References

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1: Objective of the Reports

Purpose of the report
This report is conducted to allocated highest amount of budget to a system that helped to
maintain the current operation of the bank. The systems in consideration are management
information system (MIS), decision support system (DSS) and executive information system
(EIS). These systems are used to maintain the operation of the bank that the company
currently purchased. Hence, the top management wanted to know which systems benefit the
organization in banking industry largely.
The purpose of this report is to find out which systems as mentioned above will get the
highest budget allocation in the future years. That is the main reason for conducting the report
for this matter. In addition, the top management needed to know how these information
systems are useful for the organization and its capabilities to be applied in Qrel Banks daily
operation. Also, the top management will like to know which systems require more budget
allocation than the others. Hence, this report has been conducted to explain the types of
systems that the organization used with its requirements and benefits.

Definition of MIS, DSS and EIS with proper quotation

a)

Management Information System

MIS is an integrated, user machine system that provides the necessary information in
supporting the core functions of the firms such as operations, management and decision
making (Trivellas & Santouridis, 2013). It is a machine that capable to assist in daily
operations, management and decision making because of the need of collection and storing
data. It also can disseminate data into information and categorize them properly for easier
search. Although MIS efficiency is easy to define and measure, it is actually difficult to
operationalize MIS effectiveness. It is because there are so many confusion and vagueness on
the system. They have been cases where MIS failed to perform and leads to disastrous effects
to the corporations.
A management information system (MIS) is a computerized database of financial information
organized and programmed in such a way that it produces regular reports on operations for
every level of management in a company. It is usually also possible to obtain special reports
from the system easily.

b)

Transaction Processing System

Transaction processing system is a software technology that enables reliable concurrent

management of large distributed system (Matsuoka & Muraki, 2002). It requires execution of
multiple sequences of computations using that specific data that are submitted or collected
from several sources. These sequences are known as transaction. Data processing should be
managed properly since it can be assessed by numerous users at the same times repeatedly.
This is to ensure that the system can control the transactions as well as execute in parallel and
in complete isolation.

c)

Decision Support System

Decision Support systems are needed to assist the management in making, deploying and
maintaining effective plans and operations. It helped to uses data from a network of POS to
gather information on banks branches, for example, the demographic, customers
characteristics and financial characteristics. It helped the management to see the performance
of each branch and the whole network properly and immediately. The system will change the
data into information that needed by the management to evaluate their needs or purposes for
decision making process. GEPSIS is one of the DSS that was developed for the improvement
of business processes. It actually helped to analyze the static structure of each process and
streamlined the bank operation. It means the bank can access the information everywhere.

d) Executive Information System

An executive information system (EIS), also known as an executive support system (ESS), is
a type of management information system that facilitates and supports senior executive
information and decision-making needs. It provides easy access to internal and external
information relevant to organizational goals. It is commonly considered a specialized form of
decision support system (DSS).

2: Management Information System

The inputs involved

There are four MIS inputs that needed to be included in the system. Firstly, it is open system
or open source (Trivellas & Santouridis, 2013). This is needed as it allows flexibility and
external orientation. It helped MIS to enhance its capabilities with its environment scanning
for opportunities and threats, filtering information, promoting doubt and argument, and
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fostering interorganizational alliances (Trivellas & Santouridis, 2013). Secondly, it is the

human resource. It is characterized by flexibility, morale, teamwork and participation values
(Trivellas & Santouridis, 2013). It allowed facilitating the member dialogue, participation and
development. Hence, it can promote interpersonal communication. Thirdly, it is internal
process (Trivellas & Santouridis, 2013). It assists the need of control and internal
orientations. Even it helped MIS in term of accounting oriented. Hence, it helped to link all
organizational wide measurement, controls, procedures and processes. Fourthly, it is rational
management (Trivellas & Santouridis, 2013). This focuses on organizational planning,
directing, external orientation and goal setting. It focused on uncertainty reduction as well as
operation research. For example, revenue optimization and forecasting can be done well.

The method of application (step 1, step 2, etc.) involved in carrying out the function through
MIS
(Martin, Lakshmi, & Venkatesan, 2014)
(Martin, Lakshmi, & Venkatesan, 2014)
(Martin, Lakshmi, & Venkatesan, 2014)
In the first step of the fuzzy AHP, information resources and delivery channels need to be
idenfitied to check on the information delivery model for the banking users (alternatives). A
banking system normally involved many users such as customers, management, employees,
government and others. It is normal that every user aware of the required information. Here,
it requires the need of identifying and presenting the users with the information they needed.
That is the objectives of the banking information delivery model. The second step of the
model design is the needs to decide the information delivery channel. It is because the level
of information and visualization of the information needs to be generated for the end users. It
is to make sure that the user receive the information through email, messaging or other
method they preferred and what kind of information they can received. For example, the
details of transaction can be emailed or messages to the recipients.

Since each user has different interest in a banking system, the information requirement differs
from one user to another. Hence, the system will make sure that interest of the information
benefits the users. That is the third step in the fuzzy system. It will categorize the information
to ensure it provides reliability quality, value for money, product availability and customer
services. It will pass to the fourth step where it focuses on the level of information. Once the
interest has been obtained, the level of decision making takes it part into the processes.
Information can be decided using interest of information where the information content has
been decided under that criteria. So, it only show the users what they want, what they search
and its related information and data. The fifth step is making sure the fuzzy deliver the
information in a very good speed. People do not want to wait to get their information. Hence,
the bank needed to ensure that it is fast to cater the needs of end user. Online banking
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especially cannot take longer than 15 minutes to complete for a simple transaction. This will
create a thought in the end users that the system is not reliable and the security can be
breached within this moment. When the speed is faster, the fuzzy system will make sure that
the level of security has been secured well. This is the seventh step. Not all information can
be accessed by the end users. It can cause problems to the bank itself. So, the security level
shall be separated into top secret, secret, confidential, restricted and open. This helped to
increase the information that only the employees in the organization knows about. Then, the
whole things will be repeated again and again for every single user.

The output produced

(Martin, Lakshmi, & Venkatesan, 2014)
There are three categories the reports can be distributed or organized in. It can be done
through periodical reports, requested reports and unexpected reports (Trivellas & Santouridis,
2013). Periodical reports are created after a certain amount of time or schedule timing.
Normally, managers produced such reports daily, weekly and monthly based on their
decision-making needs for production. Second, the outputs produced from management
information system are requested report. These reports are only produced or created when it
was requested by the superiors or customers. It is not based on periodical timing. Third,
management information system produced unexpected reports for the managers and top
management. Unexpected reports are produced directly when an unexpected situation
happened in the organization. This report helped to increase task innovation and task
efficiencies of the employees and employers.

3: Transaction Processing System

The inputs involved
In order to use the transaction processing system, several inputs are needed in the
architecture. Firstly, it is the gateways. Gateways (GW) will collect any buy and sell requests
from the clients. It is especially shown on the ATM machine, the computer in cashier desktop
and the online banking system. Then, the gateways will perform preprocessing the requests
that includes validation for the matter. Validation may include pin numbers or other security
matter. Secondly, the system requires execution venues (EV). Execution venues are the heart
of the stock exchange. Here, the system carry out the trading by matching the incoming
requests to the list installed in the memory of outstanding requests. The memory is called an
order book or categorization book. The EV is implemented by a node. By the nature of the
stock trading transaction, the state of the EV can be determined by the order of incoming
requests it processes. Third, it requires history recorder (HR). It is used to store the results
during every update. It is especially during every trade that are carried out by the EVs. It can
be implemented by a file system or database management system. This database system
stored all information and data that later can be accessed by every employee everywhere. It is
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essential that the server is updated and back up frequently to avoid any information loss
during a system failure.

The method of application (step 1, step 2, etc.) involved in carrying out the function through
TPS
Transaction processing systems worked accordingly in several steps. First, the GW will
receive the requests from clients. It includes opening accounts, checking balances, ATM
withdrawals and its pin and other matter. It will help to store the requests and sent those
requests to the EVs. Different EVs may receive requests from GWs in different
categorization. It will be helpful to agree on the way a request is stored and sent out. Second,
EVs will agree on the total ordering for the requests. This is done by communicating with the
sequencer. During implementation, the sequencers are included with a limited amount of
shared memory that allows the EV to communicate with one another. Third, EVs process all
requests by matching them with the categorization and orders, then directly send the results to
HRs. Fourth, HRs will store the results every update and it will notify the EVs regarding to
the matter. Fifth, EVs will notify GWs in the matter of trade completion once the HR
acknowledged and agreed upon them. In meanwhile, GWs will notify the clients of the trade
completion after receiving the acknowledgement from EVs. These are all the steps used in the
transaction processing system that widely used by all industries in the world. Since each tiers
have their own recovery system and they worked together to cater the problems, they make
the entire system capable to reduce any faulty of the mechanism. Hence, we are going to
explain the recovery mechanism needed in transaction processing system. Gws needs to store
all trade requests before they can notify any clients of their requests. GWs also needed to
send the requests to the EVs. If a GW failed in storing the requests, the client will fail to
receive acknowledge on the request. Then the clients will resend their requests without
knowing the level of acceptance. This is one of the failures. It is commonly happened in
online banking system or opening bank account. GWs normally require the employment of
DBMS (Database management system) to take advantage of the system in features to fit
better performance. Thats why it is necessary to employ two EVs in case the first EV failed
to communicate, the second one will be able to communicate with the computers and servers.

The output produced

There are several output produced by transaction processing system. Those outputs are
reports, balance sheet, profit and loss sheet, the amount of customers deposited the bank
daily and other functions that related to management, operation and accounting of the banks.

4: Decision Support System

The inputs involved

There are three fundamental components that assisting the decision support system. Firstly, it
is database management systemA database support management system separated the users
from the physical aspects of the database structure and processing (Druzdzel & Flynn, 2002).
It is capable to inform the user of types of data available in the system using categorization
and ease the process to gain access to them. Second, it is model-base management system
(Druzdzel & Flynn, 2002). Model-base management system helped DSS by providing
independence between the models that are currently used in a decision support system from
the applications that uses them. Lastly, it is the dialog generation and management system
(Druzdzel & Flynn, 2002). Hence, the primary responsibility of this system is to improve the
ability for the user to utilize and benefit the system from the decision support system.

The method of application (step 1, step 2, etc.) involved in carrying out the function through
DSS
(Ioannou & Mavri, 2007)
(Ioannou & Mavri, 2007)

As above steps 1- 8 of the algorithm performance, it seems that the researcher is able to
evaluate the strength of the relationship among the banks parameters and characteristics of
the geographical areas. It helped in contribution of each variable to the explanation of the
performance of each branch. In that, the researcher can calculate the performance of each
branch and whole network. In Phase 2, the researcher will calculate the optimal solution for
each branch and then the difference that occurred in between the overall branch performance
and its operating fixed costs for the examined branches. Hence, the user will communicate
with the system to assign the operating fixed costs of the branches. In Phase 3, the researchers
identified the bank branch with minimum performance score in thoughts. The branch shall be
a merger candidate. At this point, the researcher modified the constraints of problems after
the elimination of each candidate and resolve the later problem in excel. Meanwhile, phase 3
revealed the calculation of the difference between the new overall branch performance and
the operating fixed costs for the remaining branches. It the difference increases, a new
elimination shall be suggested immediately. If not, it means that the optimum solution for our
problem. It is wise to ask the user to interact with the performance-net interface to define the
number of elimination the system should complete for the users.

The output produced

In the end, the decision support system will revealed the last finalized report in map, chart,
data summary, report or data file (Ioannou & Mavri, 2007) Decision support system output
may include several forms, objects or other way to represent its inputs and manipulation that
created by the end user. It can include a set of representation that displays the results from
queries, analyses and rules for users (Power, 2008). It could be a set of data on chart, text,
images and sound (Power, 2008). It is either descriptive or prescriptive way. Simply to say,
all the outputs are very suitable for human interpretation of the information.

5. Executive Information System

EIS emphasizes graphical displays and easy-to-use user interfaces. They offer strong
reporting and drill-down capabilities. In general, EIS are enterprise-wide DSS that help toplevel executives analyze, compare, and highlight trends in important variables so that they
can monitor performance and identify opportunities and problems. EIS and data warehousing
technologies are converging in the marketplace.
In recent years, the term EIS has lost popularity in favor of business intelligence (with the sub
areas of reporting, analytics, and digital dashboards).
History
Traditionally, executive information systems were mainframe computer-based programs. The
purpose was to package a companys data and to provide sales performance or market
research statistics for decision makers, such as financial officers, marketing directors, and
chief executive officers, who were not necessarily well acquainted with computers. The
objective was to develop computer applications that highlighted information to satisfy senior
executives needs. Typically, an EIS provides only data that supported executive level
decisions, not all company data.
Today, the application of EIS is not only in typical corporate hierarchies, but also at personal
computers on a local area network. EIS now cross computer hardware platforms and integrate
information stored on mainframes, personal computer systems, and minicomputers. As some
client service companies adopt the latest enterprise information systems, employees can use
their personal computers to get access to the companys data and identify information
relevant to their decision making. This arrangement lets all users customize their access to
company data, and provides relevant information to upper and lower corporate levels.
Components
EIS components can typically be classified as:

Hardware

Software
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User interface

Telecommunications

Hardware
When talking about computer hardware for an EIS environment, we should focus on the
hardware that meet the executives needs. The executive must be put first and the executives
needs must be defined before the hardware can be selected. The basic hardware needed for a
typical EIS includes four components:
1.
Input data-entry devices. These devices allow the executive to enter, verify, and
update data immediately
2.
The central processing unit (CPU), which is the important because it controls the
other computer system components
3.
Data storage files. The executive can use this part to save useful business information,
and this part also help the executive to search historical business information easily
4.
Output devices, which provide a visual or permanent record for the executive to save
or read. This device refers to the visual output device such as monitor or printer
In addition, with the advent of local area networks (LAN), several EIS products for
networked workstations became available. These systems require less support and less
expensive computer hardware. They also increase EIS information access to more company
users.
Software
Choosing the appropriate software is vital to an effective EIS.[citation needed] Therefore, the
software components and how they integrate the data into one system are important. A typical
EIS includes four software components:
1.

Text-handling softwaredocuments are typically text-based

2.
Databaseheterogeneous databases on a range of vendor-specific and open computer
platforms help executives access both internal and external data
3.
Graphic basegraphics can turn volumes of text and statistics into visual information
for executives. Typical graphic types are: time series charts, scatter diagrams, maps, motion
graphics, sequence charts, and comparison-oriented graphs (i.e., bar charts)
4.
Model baseEIS models contain routine and special statistical, financial, and other
quantitative analysis

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User interface
An EIS must be efficient to retrieve relevant data for decision makers, so the user interface is
very important. Several types of interfaces can be available to the EIS structure, such as
scheduled reports, questions/answers, menu driven, command language, natural language,
and input/output.
Telecommunication
As decentralizing is becoming the current trend in companies, telecommunications will play a
pivotal role in networked information systems. Transmitting data from one place to another
has become crucial for establishing a reliable network. In addition, telecommunications
within an EIS can accelerate the need for access to distributed data.
Applications
EIS helps executives find data according to user-defined criteria and promote informationbased insight and understanding. Unlike a traditional management information system
presentation, EIS can distinguish between vital and seldom-used data, and track different key
critical activities for executives, both which are helpful in evaluating if the company is
meeting its corporate objectives. After realizing its advantages, people have applied EIS in
many areas, especially, in manufacturing, marketing, and finance areas.
Manufacturing
Manufacturing is the transformation of raw materials into finished goods for sale, or
intermediate processes involving the production or finishing of semi-manufactures. It is a
large branch of industry and of secondary production. Manufacturing operational control
focuses on day-to-day operations, and the central idea of this process is effectiveness and
efficiency.
Marketing
In an organization, marketing executives duty is managing available marketing resources to
create a more effective future. For this, they need make judgments about risk and uncertainty
of a project and its impact on the company in short term and long term. To assist marketing
executives in making effective marketing decisions, an EIS can be applied. EIS provides sales
forecasting, which can allow the market executive to compare sales forecast with past sales.
EIS also offers an approach to product price, which is found in venture analysis. The market
executive can evaluate pricing as related to competition along with the relationship of product
quality with price charged. In summary, EIS software package enables marketing executives
to manipulate the data by looking for trends, performing audits of the sales data, and
calculating totals, averages, changes, variances, or ratios.
Financial
Financial analysis is one of the most important steps to companies today. Executives needs to
use financial ratios and cash flow analysis to estimate the trends and make capital investment
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decisions. An EIS integrates planning or budgeting with control of performance reporting,

and it can be extremely helpful to finance executives. EIS focuses on financial performance
accountability, and recognizes the importance of cost standards and flexible budgeting in
developing the quality of information provided for all executive levels.
Advantages and disadvantages
Advantages of EIS

Easy for upper-level executives to use, extensive computer experience is not required
in operations

Provides timely delivery of company summary information

Information that is provided is better understood

EIS provides timely delivery of information. Management can make decisions

promptly.

Improves tracking information

Offers efficiency to decision makers

Disadvantages of EIS

System dependent

Limited functionality, by design

Information overload for some managers

Benefits hard to quantify

High implementation costs

System may become slow, large, and hard to manage

Need good internal processes for data management

May lead to less reliable and less secure data

Future trends
The future of executive info systems is not bound by mainframe computer systems. This
trend free executives from learning different computer operating systems, and substantially
decreases implementation costs. Because this trend includes using existing software
applications, executives don't need to learn a new or special language for the EIS package.

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6: Results/Discussion/Conclusion
In order to find out the best systems that should receive best budget allocation, comparison
needed to be done on all three systems. Since this industry is a banking industry, the company
needed to choose the best system to allocate in helping the consumer. In banking industry,
customers priority is very important as customers are either sending money to the bank or
receiving money from the bank. Thus, a very important element needed to be considered.
Management
Information
System
Usages in the Largely required especially if
Bank
the corporation are using
online banking system for
their customers

Decision
Support
System
Only to be used
during decision
making process

Target Users a)

Only for the

employees of the
organization as they
needed to make
decision for their
situation.

b)

c)

d)

Timing

Transaction
Processing System
Largely required to
process, record, stored
and disseminate data
for the customers,
clients, shareholders
and others.
For every single customer,a)
This system is
it is largely required to
needed for every
collect and store data of each single customer that
one.
come to the business
For every single employee, of the banks.
to records, collect, store andb)
It needed to process,
disseminate the data in the
record, store and
database.
disseminate data of
For the managers, as they
every single customer,
needed this to assist for their employer, employee,
daily, monthly and yearly
branch, and
report.
shareholder that assist
For the top management as the needs of requests
they needed this to see the
of products and
overall performance of the
services of the banks.
corporation and its products
and services.
Required in daily basis to
Required daily 24
record, collect, store and
hours basis if the
disseminate data for
banking industry
customers, managers,
offers online banking,
employees and top
ATM withdrawals,
management.
transfer money and
Online banking and normal
others.
banking requires this system
24 hours.

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Only when the

decision needed to be
made immediately
either structured,
unstructured and semi
structured.

Based on the above comparison, it is best to provide large amount of budget allocation to the
management information system. It is because the systems are required to be used 24 hours to
cater the needs of recording, storing, collecting and disseminate data for each customer that
uses the bank as their preferred choices. It is because transaction processing system uses the
need of management information system to fulfil their basic requests of products and
services. It is a part of management information system as large to provide ample services to
the customers. Plus, with the information in management information system, the employees
or managers can use that information to provide loans or other decisions that might be
required for the organizations. Also, customers easily shift within bank to bank when they are
dissatisfied. In conclusion, management information system should receive a huge amount of
budget allocation to ensure that recording, collecting, storing and disseminate of data into
information accurately, correctly within the time it occurred.

4277 words

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