A management information system (MIS) provides information that is needed to manage organizations efficiently and effectively.

[1]

Management information systems involve three

primary resources: people, technology, and information or decision making. Management information systems are distinct from other information systems in that they are used to analyze operational activities in the organization.

[2]

Academically, the term is commonly used to refer to

the group of information management methods tied to the automation or support of human decision making, e.g. decision support systems, expert systems, and executive information systems.

[2]

Overview
Early business computers were used for simple operations such as tracking sales or payroll data, with little detail or structure. Over time, these computer applications became more complex,hardware storage capacities grew, and technologies improved for connecting previously isolated applications. As more and more data was stored and linked, managers sought greater detail as well as greater abstraction with the aim of creating entire management reports from the raw, stored data. The term "MIS" arose to describe such applications providing managers with information about sales, inventories, and other data that would help in managing the enterprise. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, enterprise resource planning (ERP), enterprise performance management (EPM), supply chain management (SCM), customer relationship management (CRM), project management and database retrieval applications. The successful MIS supports a business' long range plans, providing reports based upon performance analysis in areas critical to those plans, with feedback loops that allow for titivation of every aspect of the enterprise, including recruitment and training regimens. MIS not only indicate how things are going, but also why and where performance is failing to meet the plan. These reports include near-real-time performance of cost centers and projects with detail sufficient for individual accountability.

Types
Most management information systems specialize in particular commercial and industrial sectors, aspects of the enterprise, or management substructure. Management information systems (MIS), per se, produce fixed, regularly scheduled reports based on [4] data extracted and summarized from the firms underlying transaction processing systems to middle and operational level managers to identify and inform structured and semi-structured decision problems. Decision support systems (DSS) are computer program applications used by middle management to compile information from a wide range of sources to support problem solving and decision making. Executive information systems (EIS) is a reporting tool that provides quick access to summarized reports coming from all company levels and departments such as accounting, human resources and operations. Marketing information systems are MIS designed specifically for managing the marketing aspects of the business.

Office automation systems (OAS) support communication and productivity in the enterprise by automating work flow and eliminating bottlenecks. OAS may be implemented at any and all levels of management. School management information systems (MIS) cover school administration, often including teaching and learning materials.

Advantages
The following are some of the benefits that can be attained for different types of management information [5] systems. Companies are able to highlight their strengths and weaknesses due to the presence of revenue reports, employees' performance record etc. The identification of these aspects can help the company improve their business processes and operations. Giving an overall picture of the company and acting as a communication and planning tool. The availability of the customer data and feedback can help the company to align their business processes according to the needs of the customers. The effective management of customer data can help the company to perform direct marketing and promotion activities. Information is considered to be an important asset for any company in the modern competitive world. The consumer buying trends and behaviours can be predicted by the analysis of sales and revenue reports from each operating region of the company.

Enterprise applications
Enterprise systems, also known as enterprise resource planning (ERP) systems provide an organization with integrated software modules and a unified database which enable efficient planning, managing, and controlling of all core business processes across multiple locations. Modules of ERP systems may include finance, accounting, marketing, human resources, production, inventory management and distribution. Supply chain management (SCM) systems enable more efficient management of the supply chain by integrating the links in a supply chain. This may include suppliers, manufacturer, wholesalers, retailers and final customers. Customer relationship management (CRM) systems help businesses manage relationships with potential and current customers and business partners across marketing, sales, and service. Knowledge management system (KMS) helps organizations facilitate the collection, recording, organization, retrieval, and dissemination of knowledge. This may include documents, accounting records, and unrecorded procedures, practices and skills.

[edit]Developing

Information Systems

"The actions that are taken to create an information system that solves an organizational problem are [6] called system development" . These include system analysis, system design,programming/implementation, testing, conversion, production and finally maintenance. These

actions usually take place in that specified order but some may need to repeat or be accomplished concurrently. Conversion is the process of changing or converting the old system into the new. This can be done in four ways:

Direct cutover The new system replaces the old at an appointed time. Pilot study Introducing the new system to a small portion of the operation to see how it fares. If good then the new system expands to the rest of the company. Phased approach New system is introduced in stages.

Decision support system

From Wikipedia, the free encyclopedia

Example of a Decision Support System for John Day Reservoir.

A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. DSSs include knowledge-based systems. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, and personal knowledge, or business models to identify and solve problems and make decisions. Typical information that a decision support application might gather and present are:

inventories of information assets (including legacy and relational data sources, cubes, data warehouses, and data marts),

comparative sales figures between one period and the next, projected revenue figures based on product sales assumptions.

Taxonomies
As with the definition, there is no universally-accepted taxonomy of DSS either. Different authors propose different classifications. Using the relationship with the user as the criterion, [5] Haettenschwiler differentiates passive, active, and cooperative DSS. A passive DSS is a system that aids the process of decision making, but that cannot bring out explicit decision suggestions or solutions. An active DSS can bring out such decision suggestions or solutions. A cooperative DSS allows the decision maker (or its advisor) to modify, complete, or refine the decision suggestions provided by the system, before sending them back to the system for validation. The system again improves, completes, and refines the suggestions of the decision maker and sends them back to him for validation. The whole process then starts again, until a consolidated solution is generated. Another taxonomy for DSS has been created by Daniel Power. Using the mode of assistance as the criterion, Power differentiates communication-driven DSS, data-driven DSS, document-driven [6] DSS, knowledge-driven DSS, and model-driven DSS. A communication-driven DSS supports more than one person working on a shared task; examples [7] include integrated tools like Microsoft's NetMeeting or Groove A data-driven DSS or data-oriented DSS emphasizes access to and manipulation of a time series of internal company data and, sometimes, external data. A document-driven DSS manages, retrieves, and manipulates unstructured information in a variety of electronic formats. A knowledge-driven DSS provides specialized problem-solving expertise stored as facts, rules, [6] procedures, or in similar structures. A model-driven DSS emphasizes access to and manipulation of a statistical, financial, optimization, or simulation model. Model-driven DSS use data and parameters provided by users to assist decision makers in analyzing a situation; they are not necessarily data-intensive. Dicodess is an example of [8] an open source model-driven DSS generator.

Using scope as the criterion, Power differentiates enterprise-wide DSS and desktop DSS. An enterprise-wide DSS is linked to large data warehouses and serves many managers in the company. A desktop, single-user DSS is a small system that runs on an individual manager's PC. [edit]Components

[9]

Design of a Drought Mitigation Decision Support System.

Three fundamental components of a DSS architecture are: 1. the database (or knowledge base),

[5][6][10][11][12]

2. the model (i.e., the decision context and user criteria), and 3. the user interface. The users themselves are also important components of the architecture. [edit]Development
[5][12]

Frameworks

DSS systems are not entirely different from other systems and require a structured approach. Such a [10] framework includes people, technology, and the development approach. DSS technology levels (of hardware and software) may include: 1. The actual application that will be used by the user. This is the part of the application that allows the decision maker to make decisions in a particular problem area. The user can act upon that particular problem. 2. Generator contains Hardware/software environment that allows people to easily develop specific DSS applications. This level makes use of case tools or systems such as Crystal, AIMMS, Analytica and iThink. 3. Tools include lower level hardware/software. DSS generators including special languages, function libraries and linking modules

An iterative developmental approach allows for the DSS to be changed and redesigned at various intervals. Once the system is designed, it will need to be tested and revised where necessary for the desired outcome. [edit]Classification There are several ways to classify DSS applications. Not every DSS fits neatly into one of the categories, but may be a mix of two or more architectures. Holsapple and Whinston classify DSS into the following six frameworks: Text-oriented DSS, Databaseoriented DSS, Spreadsheet-oriented DSS, Solver-oriented DSS, Rule-oriented DSS, and Compound DSS. A compound DSS is the most popular classification for a DSS. It is a hybrid system that includes two or [13] more of the five basic structures described by Holsapple and Whinston. The support given by DSS can be separated into three distinct, interrelated categories Support, Group Support, and Organizational Support. DSS components may be classified as: 1. Inputs: Factors, numbers, and characteristics to analyze 2. User Knowledge and Expertise: Inputs requiring manual analysis by the user 3. Outputs: Transformed data from which DSS "decisions" are generated 4. Decisions: Results generated by the DSS based on user criteria DSSs which perform selected cognitive decision-making functions and are based on artificial [citation intelligence or intelligent agents technologies are called Intelligent Decision Support Systems(IDSS).
needed] [14] [13]

: Personal

The nascent field of Decision engineering treats the decision itself as an engineered object, and applies engineering principles such as Design and Quality assurance to an explicit representation of the elements that make up a decision. [edit]Applications As mentioned above, there are theoretical possibilities of building such systems in any knowledge domain. One example is the clinical decision support system for medical diagnosis. Other examples include a bank loan officer verifying the credit of a loan applicant or an engineering firm that has bids on several projects and wants to know if they can be competitive with their costs. DSS is extensively used in business and management. Executive dashboard and other business performance software allow faster decision making, identification of negative trends, and better allocation of business resources. A growing area of DSS application, concepts, principles, and techniques is in agricultural production, [15][16] marketing for sustainable development. For example, the DSSAT4 package, developed through financial support of USAID during the 80's and 90's, has allowed rapid assessment of several agricultural

production systems around the world to facilitate decision-making at the farm and policy levels. There are, [17] however, many constraints to the successful adoption on DSS in agriculture. DSS are also prevalent in forest management where the long planning time frame demands specific requirements. All aspects of Forest management, from log transportation, harvest scheduling to sustainability and ecosystem protection have been addressed by modern DSSs. A specific example concerns the Canadian National Railway system, which tests its equipment on a regular basis using a decision support system. A problem faced by any railroad is worn-out or defective rails, which can result in hundreds of derailments per year. Under a DSS, CN managed to decrease the incidence of derailments at the same time other companies were experiencing an increase. [edit]Benefits 1. Improves personal efficiency 2. Speed up the process of decision making 3. Increases organizational control 4. Encourages exploration and discovery on the part of the decision maker 5. Speeds up problem solving in an organization 6. Facilitates interpersonal communication 7. Promotes learning or training 8. Generates new evidence in support of a decision 9. Creates a competitive advantage over competition 10. Reveals new approaches to thinking about the problem space 11. Helps automate managerial processes

Executive information system

From Wikipedia, the free encyclopedia

An executive information system (EIS) is a type of management information system intended to facilitate and support the information and decision-making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. It is commonly considered as a specialized form of decision support system (DSS).[1]

The emphasis of EIS is on 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 top-level 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).

Components
The components of an EIS can typically be classified as: [edit]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 kernel 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 access of the EIS information to many more users within a company. [edit]Software Choosing the appropriate software is vital to design an effective EIS. Therefore, the software components and how they integrate the data into one system are very important. The basic software needed for a typical EIS includes four components: 1. Text base software. The most common form of text are probably documents 2. Database. Heterogeneous databases residing on a range of vendor-specific and open computer platforms help executives access both internal and external data 3. Graphic base. Graphics 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 base. The EIS models contain routine and special statistical, financial, and other quantitative analysis
[citation needed]

[edit]User

interface

An EIS needs to 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. [edit]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. [edit]Applications EIS enables executives to find those 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. [edit]Manufacturing Basically, 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. [edit]Marketing In an organization, marketing executives role is to create the future. Their main 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 an approach to 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. [edit]Financial A financial analysis is one of the most important steps to companies today. The executive needs to use financial ratios and cash flow analysis to estimate the trends and make capital investment decisions. An EIS is a responsibility-oriented approach that integrates planning or budgeting with control of performance reporting, and it can be extremely helpful to finance executives. Basically, EIS focuses on accountability of financial performance and it recognizes the importance of cost standards and flexible budgeting in developing the quality of information provided for all executive levels.

[edit]Advantages [edit]Advantages

and disadvantages
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 Filters data for management Improves tracking information Offers efficiency to decision makers

[edit]Disadvantages System dependent

of EIS

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

Office automation
From Wikipedia, the free encyclopedia

It has been suggested that this article or section be merged with Office automation software. (Discuss) Proposed since November 2011.

Office automation refers to the varied computer machinery and software used to digitally create, collect, store, manipulate, and relay office information needed for accomplishing basic tasks. Raw data storage, electronic transfer, and the management of electronic business information comprise the basic activities of an office automation system.[1] Office automation helps in optimizing or automating existing office procedures. The backbone of office automation is a LAN, which allows users to transmit data, mail and even voice across the network. All office functions, including dictation, typing, filing, copying, fax, Telex, microfilm and records management, telephone and telephone switchboard operations, fall into this category. Office automation was a popular term in the 1970s and 1980s as the desktop computer exploded onto the scene. [2]

Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. Their purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside [1] stakeholders. ERP systems can run on a variety of computer hardware and network configurations, typically employing [2] a database as a repository for information.

Characteristics
ERP (Enterprise Resource Planning) systems typically include the following characteristics: An integrated system that operates in real time (or next to real time), without relying on periodic [citation needed] updates. A common database, which supports all applications. A consistent look and feel throughout each module. Installation of the system without elaborate application/data integration by the Information Technology [10] (IT) department.

Finance/Accounting General ledger, payables, cash management, fixed assets, receivables, budgeting, consolidation Human resources Payroll, training, benefits, 401K, recruiting, diversity management Manufacturing Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow,activity based costing, product life cycle management Supply chain management Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commissions Project management Costing, billing, time and expense, performance units, activity management Customer relationship management Sales and marketing, commissions, service, customer contact, call center support Data services Various "selfservice" interfaces for customers, suppliers and/or employees

Access control Management of user privileges for various processes [edit]Components Transactional database Management portal/dashboard Business intelligence system Customizable reporting External access via technology such as web services Search Document management Messaging/chat/wiki Workflow management

Implementation
ERP's scope usually implies significant changes to staff work processes and practices. Generally, three types of services are available to help implement such changesconsulting, customization, and [13] support. Implementation time depends on business size, number of modules, customization, the scope of process changes, and the readiness of the customer to take ownership for the project. Modular ERP systems can be implemented in stages. The typical project for a large enterprise consumes about 14 [14] months and requires around 150 consultants. Small projects can require months; multinational and [citation needed] other large implementations can take years. Customization can substantially increase [14] implementation times. [edit]Process
[13]

preparation
[15]

Implementing ERP typically requires changes in existing business processes. Poor understanding of [16] needed process changes prior to starting implementation is a main reason for project failure. It is therefore crucial that organizations thoroughly analyze business processes before implementation. This analysis can identify opportunities for process modernization. It also enables an assessment of the alignment of current processes with those provided by the ERP system. Research indicates that the risk of business process mismatch is decreased by: linking current processes to the organization's strategy; analyzing the effectiveness of each process; understanding existing automated solutions.
[17][18]

ERP implementation is considerably more difficult (and politically charged) in decentralized organizations, because they often have different processes, business rules, data semantics, authorization hierarchies [19] and decision centers. This may require migrating some business units before others, delaying implementation to work through the necessary changes for each unit, possibly reducing integration (e.g. [20] linking via Master data management) or customizing the system to meet specific needs. A potential disadvantage is that adopting "standard" processes can lead to a loss of competitive advantage. While this has happened, losses in one area are often offset by gains in other areas, [21][22] increasing overall competitive advantage.

[edit]Configuration Configuring an ERP system is largely a matter of balancing the way the customer wants the system to work with the way it was designed to work. ERP systems typically build many changeable parameters that modify system operation. For example, an organization can select the type of inventory accounting FIFO or LIFOto employ, whether to recognize revenue by geographical unit, product line, or distribution [20] channel and whether to pay for shipping costs when a customer returns a purchase. [edit]Customization ERP systems are theoretically based on industry best practices and are intended to be deployed "as [23][24] is". ERP vendors do offer customers configuration options that allow organizations to incorporate their own business rules but there are often functionality gaps remaining even after the configuration is complete. ERP customers have several options to reconcile functionality gaps, each with their own pros/cons. Technical solutions include rewriting part of the delivered functionality, writing a homegrown bolt-on/add-on module within the ERP system, or interfacing to an external system. All three of these options are varying degrees of system customization, with the first being the most invasive and costly to [25] maintain. Alternatively, there are non-technical options such as changing business practices and/or organizational policies to better match the delivered ERP functionality. Key differences between customization and configuration include: Customization is always optional, whereas the software must always be configured before use (e.g., setting up cost/profit center structures, organisational trees, purchase approval rules, etc.) The software was designed to handle various configurations, and behaves predictably in any allowed configuration. The effect of configuration changes on system behavior and performance is predictable and is the responsibility of the ERP vendor. The effect of customization is less predictable, is the customer's responsibility and increases testing activities. Configuration changes survive upgrades to new software versions. Some customizations (e.g. code that uses predefined "hooks" that are called before/after displaying data screens) survive upgrades, though they require retesting. Other customizations (e.g. those involving changes to fundamental [26] data structures) are overwritten during upgrades and must be reimplemented.

Customization Advantages: Improves user acceptance

[27]

Offers the potential to obtain competitive advantage vis--vis companies using only standard features.

Customization Disadvantages: Increases time and resources required to both implement and maintain.
[25]

Inhibits seamless communication between suppliers and customers who use the same ERP system [citation needed] uncustomized. Over reliance on customization undermines the principles of ERP as a standardizing software platform

[edit]Extensions ERP systems can be extended with thirdparty software. ERP vendors typically provide access to data [citation needed] and functionality through published interfaces. Extensions offer features such as: archiving, reporting and republishing; capturing transactional data, e.g. using scanners, tills or RFID access to specialized data/capabilities, such as syndicated marketing data and associated trend analytics. advanced planning and scheduling (APS)

[edit]Data

migration

Data migration is the process of moving/copying and restructuring data from an existing system to the ERP system. Migration is critical to implementation success and requires significant planning. Unfortunately, since migration is one of the final activities before the production phase, it often receives [28] insufficient attention. The following steps can structure migration planning: Identify the data to be migrated Determine migration timing Generate the data templates Freeze the toolset Decide on migration-related setups Define data archiving policies and procedures.

[edit]Comparison [edit]Advantages

to specialpurpose applications

The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be made more quickly and with fewer errors. Data becomes [citation needed] visible across the organization. Tasks that benefit from this integration include: Sales forecasting, which allows inventory optimization Chronological history of every transaction through relevant data compilation in every area of operation. Order tracking, from acceptance through fulfillment Revenue tracking, from invoice through cash receipt Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)

ERP systems centralize business data, bringing the following benefits: They eliminate the need to synchronize changes between multiple systemsconsolidation of finance, marketing and sales, human resource, and manufacturing applications They bring legitimacy and transparency in each bit of statistical data. They enable standard product naming/coding.

They provide a comprehensive enterprise view (no "islands of information"). They make realtime information available to management anywhere, any time to make proper decisions. They protect sensitive data by consolidating multiple security systems into a single structure.
[29]

[edit]Benefits ERP can greatly improve the quality and efficiency of a business. By keeping a company's internal business process running smoothly, ERP can lead to better outputs that will benefit the company such as customer service, and manufacturing. ERP provides support to upper level management to provide them with critical decision making information. This decision support will allow the upper level management to make managerial choices that will enhance the business down the road. ERP also creates a more agile company that can better adapt to situations and changes. ERP makes the company more flexible and less rigidly structured in an effort to allow the different parts of an organization to become more cohesive, in turn, enhancing the business both internally and [30] externally.

[edit]Disadvantages Customization is problematic. Reengineering business processes to fit the ERP system may damage competitiveness and/or divert focus from other critical activities ERP can cost more than less integrated and/or less comprehensive solutions. High switching costs associated with ERP can increase the ERP vendor's negotiating power which can result in higher support, maintenance, and upgrade expenses. Overcoming resistance to sharing sensitive information between departments can divert management attention. Integration of truly independent businesses can create unnecessary dependencies. Extensive training requirements take resources from daily operations. Due to ERP's architecture (OLTP, On-Line Transaction Processing) ERP systems are not well suited for production planning and supply chain management (SCM)

The limitations of ERP have been recognized sparking new trends in ERP application development, the four significant developments being made in ERP are, creating a more flexible ERP, Web-Enable ERP, Interenterprise ERP and e-Business Suites, each of which will potentially address the failings of the current ERP.

Information system
From Wikipedia, the free encyclopedia

An information system (IS) - or application landscape[1] - is any combination of information technology and people's activities that support operations, management and decision making.[2] In a very broad sense, the term information system is frequently used to refer to the interaction between people, processes, data and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) that an organization uses, but also to the way in which people interact with this technology in support of business processes.[3] Some make a clear distinction between information systems, computer systems, and business processes. Information systems typically include an ICT component but are not purely concerned with ICT, focusing in instead, on the end use of information technology. Information systems are also different from business processes. Information systems help to control the performance of business processes.[4] Alter argues for an information system as a special type of work system. A work system is a system in which humans and/or machines perform work using resources to produce specific products and/or services for customers. An information system is a work system whose activities are devoted to processing (capturing, transmitting, storing, retrieving, manipulating and displaying) information.[5] As such, information systems inter-relate with data systems on the one hand and activity systems on the other. An information system is a form of communication system in which data represent and are processed as a form of social memory. An information system can also be considered a semi-formal language which supports human decision making and action. Information systems are the primary focus of study for the information systems discipline and for organizational informatics.[6]

[edit]Components It consists of computers, instructions, stored facts, people and procedures. ISs can be categorized in five parts: 1. Management Information System (MIS) 2. Decision Support System (DSS) 3. Executive Information System (EIS) 4. Transaction Processing System (TPS) 5. Negotiation Support System (NSS)

6. A transaction processing system is a type of information system. TPSs collect, store, modify, and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system. To be considered a transaction processing system the computer must pass the ACID test. The essence of a transaction program is that it manages data that must be left in a consistent state, e.g. if an electronic payment is made, the amount must be both withdrawn from one account and added to the other; it cannot complete only one of those steps. Either both must occur, or neither. In case of a failure preventing transaction completion, the partially executed transaction must be 'rolled back' by the TPS. While this type of integrity must be provided also for batch transaction processing, it is particularly important for online processing: if e.g. an airline seat reservation system is accessed by multiple operators, after an empty seat inquiry, the seat reservation data must be locked until the reservation is made, otherwise another user may get the impression a seat is still free while it is actually being booked at the time. Without proper transaction monitoring, double bookings may occur. Other transaction monitor functions include deadlock detection and resolution (deadlocks may be inevitable in certain cases of cross-dependence on data), and transaction logging (in 'journals') for 'forward recovery' in case of massive failures. 7. Transaction Processing is not limited to application programs. The 'journaled file system' provided with IBMs AIX Unix operating system employs similar techniques to maintain file system integrity, including a journal.

Types
[edit]Contrasted

with batch processing

Batch processing is a form of transaction processing. Batch processing involves processing several transactions at the same time, and the results of each transaction are not immediately available when the [1] transaction is being entered; there is a time delay. Transactions are accumulated for a certain period (say for day) where updates are made especially after work. Online transaction processing is the form of transaction processing that processes data as it becomes available. [edit]Real-time

and batch processing

There are a number of differences between real-time and batch processing. These are outlined below: Each transaction in real-time processing is unique. It is not part of a group of transactions, even though those transactions are processed in the same manner. Transactions in real-time processing are standalone both in the entry to the system and also in the handling of output. Real-time processing requires the master file to be available more often for updating and reference than batch processing. The database is not accessible all of the time for batch processing. Real-time processing has fewer errors than batch processing, as transaction data is validated and entered immediately. With batch processing, the data is organised and stored before the master file is updated. Errors can occur during these steps. Infrequent errors may occur in real-time processing; however, they are often tolerated. It is not practical to shut down the system for infrequent errors. More computer operators are required in real-time processing, as the operations are not centralised. It is more difficult to maintain a real-time processing system than a batch processing system.

[edit]Features [edit]Rapid

response

Fast performance with a rapid response time is critical. Businesses cannot afford to have customers waiting for a TPS to respond, the turnaround time from the input of the transaction to the production for the output must be a few seconds or less. [edit]Reliability Many organizations rely heavily on their TPS; a breakdown will disrupt operations or even stop the business. For a TPS to be effective its failure rate must be very low. If a TPS does fail, then quick and accurate recovery must be possible. This makes welldesigned backup and recovery procedures essential. [edit]Inflexibility A TPS wants every transaction to be processed in the same way regardless of the user, the customer or the time for day. If a TPS were flexible, there would be too many opportunities for non-standard operations, for example, a commercial airline needs to consistently accept airline reservations from a range of travel agents, accepting different transactions data from different travel agents would be a problem. [edit]Controlled

processing

The processing in a TPS must support an organization's operations. For example if an organization allocates roles and responsibilities to particular employees, then the TPS should enforce and maintain this requirement. An example of this is an ATM transaction. [edit]Components 1.Input 2.Processing 3.Storage 4.Output [edit]ACID

test properties: first definition

[edit]Atomicity Main article: Atomicity (database systems) A transactions changes to the state are atomic: either all happen or none happen. These changes [2] include database changes, messages, and actions on transducers. [edit]Consistency Consistency: A transaction is a correct transformation of the state. The actions taken as a group do not violate any of the integrity constraints associated with the state. This requires that the transaction be a [2] correct program!

[edit]Isolation Even though transactions execute concurrently, it appears to each transaction T, that others executed [2] either before T or after T, but not both. [edit]Durability Once a transaction completes successfully (commits), its changes to the state survive failures. [edit]Concurrency Ensures that two users cannot change the same data at the same time. That is, one user cannot change a piece of data before another user has finished with it. For example, if an airline ticket agent starts to reserve the last seat on a flight, then another agent cannot tell another passenger that a seat is available [edit]Storing
[2]

and retrieving

Storing and retrieving information from a TPS must be efficient and effective. The data are stored in warehouses or other databases, the system must be well designed for its backup and recovery procedures. [edit]Databases

and files

The storage and retrieval of data must be accurate as it is used many times throughout the day. A database is a collection of data neatly organized, which stores the accounting and operational records in the database. Databases are always protective of their delicate data, so they usually have a restricted view of certain data. Databases are designed using hierarchical, network or relational structures; each structure is effective in its own sense. Hierarchical structure: organizes data in a series of levels, hence why it is called hierarchal. Its top to bottom like structure consists of nodes and branches; each child node has branches and is only linked to one higher level parent node. Network structure: Similar to hierarchical, network structures also organizes data using nodes and branches. But, unlike hierarchical, each child node can be linked to multiple, higher parent nodes. Relational structure: Unlike network and hierarchical, a relational database organizes its data in a series of related tables. This gives flexibility as relationships between the tables are built.

A relational structure.

A hierarchical structure. A network structure.

The following features are included in real time transaction processing systems: Good data placement: The database should be designed to access patterns of data from many simultaneous users. Short transactions: Short transactions enables quick processing. This avoids concurrency and paces the systems. Real-time backup: Backup should be scheduled between low times of activity to prevent lag of the server. High normalization: This lowers redundant information to increase the speed and improve concurrency, this also improves backups. Archiving of historical data: Uncommonly used data are moved into other databases or backed up tables. This keeps tables small and also improves backup times. Good hardware configuration: Hardware must be able to handle many users and provide quick response times.

In a TPS, there are 5 different types of files. The TPS uses the files to store and organize its transaction data: Master file: Contains information about an organizations business situation. Most transactions and databases are stored in the master file. Transaction file: It is the collection of transaction records. It helps to update the master file and also serves as audit trails and transaction history. Report file: Contains data that has been formatted for presentation to a user. Work file: Temporary files in the system used during the processing. Program file: Contains the instructions for the processing of data.

[edit]Data

warehouse

Main article: Data warehouse A data warehouse is a database that collects information from different sources. When it's gathered in real-time transactions it can be used for analysis efficiently if it's stored in a data warehouse. It provides data that are consolidated, subject-oriented, historical and read-only: Consolidated: Data are organised with consistent naming conventions, measurements, attributes and semantics. It allows data from a data warehouse from across the organization to be effectively used in a consistent manner. Subject-oriented: Large amounts of data are stored across an organization, some data could be irrelevant for reports and makes querying the data difficult. It organizes only key business information from operational sources so that it's available for analysis. Historical: Real-time TPS represent the current value at any time, an example could be stock levels. If past data are kept, querying the database could return a different response. It stores series of snapshots for an organisation's operational data generated over a period of time. Read-only: Once data are moved into a data warehouse, it becomes read-only, unless it was incorrect. Since it represents a snapshot of a certain time, it must never be updated. Only operations which occur in a data warehouse are loading and querying data.

[edit]Backup

procedures

A Dataflow Diagram of backup and recovery procedures.

Since business organizations have become very dependent on TPSs, a breakdown in their TPS may stop the business' regular routines and thus stopping its operation for a certain amount of time. In order to prevent data loss and minimize disruptions when a TPS breaks down a well-designed backup and recovery procedure is put into use. The recovery process can rebuild the system when it goes down. [edit]Recovery process A TPS may fail for many reasons. These reasons could include a system failure, human errors, hardware failure, incorrect or invalid data, computer viruses,software application errors or natural or man-made disasters. As it's not possible to prevent all TPS failures, a TPS must be able to cope with failures. The TPS must be able to detect and correct errors when they occur. A TPS will go through a recovery of the database to cope when the system fails, it involves the backup, journal, checkpoint, and recovery manager:

Journal: A journal maintains an audit trail of transactions and database changes. Transaction logs and Database change logs are used, a transaction log records all the essential data for each transactions, including data values, time of transaction and terminal number. A database change log contains before and after copies of records that have been modified by transactions. Checkpoint: The purpose of checkpointing is to provide a snapshot of the data within the database. A checkpoint, in general, is any identifier or other reference that identifies at a point in time the state of the database. Modifications to database pages are performed in memory and are not necessarily written to disk after every update. Therefore, periodically, the database system must perform a checkpoint to write these updates which are held in-memory to the storage disk. Writing these updates to storage disk creates a point in time in which the database system can apply changes contained in a transaction log during recovery after an unexpected shut down or crash of the database system.

If a checkpoint is interrupted and a recovery is required, then the database system must start recovery from a previous successful checkpoint. Checkpointing can be either transaction-consistent or nontransaction-consistent (called also fuzzy checkpointing). Transaction-consistent checkpointing produces a persistent database image that is sufficient to recover the database to the state that was externally perceived at the moment of starting the checkpointing. A non-transaction-consistent checkpointing results in a persistent database image that is insufficient to perform a recovery of the database state. To perform the database recovery, additional information is needed, typically contained in transaction logs. Transaction consistent checkpointing refers to a consistent database, which doesn't necessarily include all the latest committed transactions, but all modifications made by transactions, that were committed at the time checkpoint creation was started, are fully present. A non-consistent transaction refers to a checkpoint which is not necessarily a consistent database, and can't be recovered to one without all log records generated for open transactions included in the checkpoint. Depending on the type of database management system implemented a checkpoint may incorporate indexes or storage pages (user data), indexes and storage pages. If no indexes are incorporated into the checkpoint, indexes must be created when the database is restored from the checkpoint image. Recovery Manager: A recovery manager is a program which restores the database to a correct condition which can restart the transaction processing.

Depending on how the system failed, there can be two different recovery procedures used. Generally, the procedures involves restoring data that has been collected from a backup device and then running the transaction processing again. Two types of recovery are backward recovery and forward recovery: Backward recovery: used to undo unwanted changes to the database. It reverses the changes made by transactions which have been aborted. It involves the logic of reprocessing each transaction, which is very time-consuming. Forward recovery: it starts with a backup copy of the database. The transaction will then reprocess according to the transaction journal that occurred between the time the backup was made and the present time. It's much faster and more accurate.

See also: Checkpoint restart

[edit]Types of back-up procedures There are two main types of Back-up Procedures: Grandfather-father-son and Partial backups:

[edit]Grandfather-father-son
This procedure refers to at least three generations of backup master files. thus, the most recent backup is the son, the oldest backup is the grandfather. It's commonly used for a batch transaction processing system with a magnetic tape. If the system fails during a batch run, the master file is recreated by using the son backup and then restarting the batch. However if the son backup fails, is corrupted or destroyed, then the next generation up backup (father) is required. Likewise, if that fails, then the next generation up backup (grandfather) is required. Of course the older the generation, the more the data may be out of date. Organizations can have up to twenty generations of backup.

[edit]Partial backups
This only occurs when parts of the master file are backed up. The master file is usually backed up to magnetic tape at regular times, this could be daily, weekly or monthly. Completed transactions since the last backup are stored separately and are called journals, or journal files. The master file can be recreated from the journal files on the backup tape if the system is to fail. [edit]Updating in a batch This is used when transactions are recorded on paper (such as bills and invoices) or when it's being stored on a magnetic tape. Transactions will be collected and updated as a batch at when it's convenient or economical to process them. Historically, this was the most common method as the information technology did not exist to allow real-time processing. The two stages in batch processing are: Collecting and storage of the transaction data into a transaction file - this involves sorting the data into sequential order. Processing the data by updating the master file - which can be difficult, this may involve data additions, updates and deletions that may require to happen in a certain order. If an error occurs, then the entire batch fails.

Updating in batch requires sequential access - since it uses a magnetic tape this is the only way to access data. A batch will start at the beginning of the tape, then reading it from the order it was stored; it's very time-consuming to locate specific transactions. The information technology used includes a secondary storage medium which can store large quantities of data inexpensively (thus the common choice of a magnetic tape). The software used to collect data does not have to be online - it doesn't even need a user interface. [edit]Updating in real-time This is the immediate processing of data. It provides instant confirmation of a transaction. This involves a large amount of users who are simultaneously performing transactions to change data. Because of advances in technology (such as the increase in the speed of data transmission and larger bandwidth), real-time updating is possible.

Steps in a real-time update involve the sending of a transaction data to an online database in a master file. The person providing information is usually able to help with error correction and receives confirmation of the transaction completion. Updating in real-time uses direct access of data. This occurs when data are accessed without accessing previous data items. The storage device stores data in a particular location based on a mathematical procedure. This will then be calculated to find an approximate location of the data. If data are not found at this location, it will search through successive locations until it's found. The information technology used could be a secondary storage medium that can store large amounts of data and provide quick access (thus the common choice of a magnetic disk).