Unit 2 Itb Bba 5th Sem
Unit 2 Itb Bba 5th Sem
Unit 2 Itb Bba 5th Sem
Introduction to Subsystems
All jobs, with the exception of system jobs, run within subsystems. Each subsystem
can run unique operations. For instance, one subsystem may be set up to handle only
interactive jobs, while another subsystem handles only batch jobs. Subsystems can
also be designed to handle many types of work.
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
which resources the subsystem uses to perform the work. An active subsystem
takes on the simple name of the subsystem description.
Processing business transactions was the first application of computer of most firms.
Since the 1950s, Transaction processing system (TPS) have evolved from slow,
manual systems to advanced computerized system. TPS, a cross-functional
information system were among the earliest computerized systems developed to
record, process, validate, and store business for future use or retrieval.
1. Data collection: The process of capturing and gathering the needed data to
complete transactions. Data collection can be manual process or automated process.
The usage of automated data collection devices have made data collection faster,
more efficient and reliable and allow firms to use the collected data in much more
flexible ways. For example, retail stores use scanners to read the bar code from
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
product packages and automatically enter the price item to TPS. Once the price data is
entered, the computer will determine customer’s bill.
2. Data manipulation: The process of performing calculation and other data
transformation related to business transactions and store data and information in
organization’s database for further processing. For example, in a payroll TPS,
managers multiply employee’s hours worked times the hourly pay rate.
3. Data storage: Data storage involves placing transaction data or information in
database. The stored data can be further processed and manipulated by other
information system.In other words, the data appears to be the source of data for other
information systems
4. Data production: The process of outputting records and reports. The
documents may be in the form of hard copy paper reports or soft copy where documents
are displayed on computer screens.
Organizations expect their TPS to accomplish a number of specific objectives such as:
• Increase labor efficiency: Manual TPS were labor intensive in which the
process of business transaction are done by hand. With computerized TPS, firms can
reduce the need of many labors as computer can replace human labors, thus saving the
cost.
• Help provide increased and enhanced services: TPS assist organization in
providing superior customer service. For example, computerized TPS enable
customer to place orders for raw materials electronically and helps firms to track
customer orders through all stages from order to delivery to receipt of payment.
1. Rapid response: In order to shorten the waiting time of the users, TPSs are
modified to process transactions instantly to ensure the data will be available in the
shortest waiting time.
2. Reliability: Due to the involvement of cash, the reliability of TPS has to be in
place. TPSs have to be designed in a way to avoid the transactions slip past the net in
the same time remain themselves operating permanently. Also the failure rate has to
be remained within the tolerance levels. With that comprehensive safeguards and
disaster recovery systems have to be incorporated by the designed TPSs.
3. Inflexibility: Mistakes or errors can occur once the steps alter. To maximize
the efficiency of the TPS, transactions have to be processed in the same order. With
that, TPS interfaces have to be designed so that the identical data for each transaction
can be acquired.
4. Controlled Processing: Transaction processing monitor is found at every end
of the computer to ensure that the transactions are correctly inputted. Still it requires
human controls on it. TPSs can be used even in modify the data and fraudulent the
transactions. With that the user of the system has to be restricted only for people who
have the authority.
MUKUND.G 4
Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
Transaction processing cycle capture the process data scribing business transactions
update the organizational database and produce a variety of formation products.
Anyway, the transaction processing cycle has the following basic activities –
Data entry: The first step of the transaction processing cycle is the capture of
business data. For example, data can be collected by using optical scanning of
barcodes.
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
So, these are the various stages and cycle of the transaction process System
The three components of MIS provide a more complete and focused definition,
where System suggests integration and holistic view, Information stands for
processed data, and Management is the ultimate user, the decision makers.
Management
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
Information
Information, in MIS, means the processed data that helps the management in
planning, controlling and operations. Data means all the facts arising out of the
operations of the concern. Data is processed i.e. recorded, summarized, compared
and finally presented to the management in the form of MIS report.
System
Data is processed into information with the help of a system. A system is made up of
inputs, processing, output and feedback or control.
Thus MIS means a system for processing data in order to give proper information to
the management for performing its functions.
Objectives of MIS
The goals of an MIS are to implement the organizational structure and dynamics of
the enterprise for the purpose of managing the organization in a better way and
capturing the potential of the information system for competitive advantage.
Processing Data − The captured data is processed into information needed for
planning, organizing, coordinating, directing and controlling functionalities at
strategic, tactical and operational level. Processing data means −
2.sorting data
4.summarizing data
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
Information Retrieval − The system should be able to retrieve this information from
the storage as and when required by various users.
Characteristics of MIS
2. It should provide a holistic view of the dynamics and the structure of the
organization.
8. It should create linkage between all sub-systems within the organization, so that
the decision makers can take the right decision based on an integrated view.
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
1. It should be able to process data accurately and with high speed, using various
techniques like operations research, simulation, heuristics, etc.
2. It should be able to collect, organize, manipulate, and update large amount of raw
data of both related and unrelated nature, coming from various internal and external
sources at different periods of time.
3. It should provide real time information on ongoing events without any delay.
4. It should support various output formats and follow latest rules and regulations in
practice.
5. It should provide organized and relevant information for all levels of management:
strategic, operational, and tactical.
• Processing data
• Initiating transactions
• Responding to inquiries
• Producing reports and its summaries
• Manage the data created within the structure of a particular business
Functions of MIS
Data Processing
It includes the collection, transmission, storage, processing and output of data. It
simplifies the statistics and reduces to the lowest cost by supplying an unified format.
Function of Prediction
Function of Plan
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
It arranges reasonably the plans of each functional department in accordance with the
restrictions afforded by enterprises and provides the appropriate planning reports
according to different management.
Function of control
It monitors and inspects the operation of plans and comprises with the
differences between operation and plan in accordance with the data afforded
by every functional department, and be assistant to managers to control timely
each method by analyzing the reasons why the differences comes into being.
Function of assistance
It derives instantly the best answers of related problems by applying to
several of mathematics’ mode and analyzing a plentiful data stored in
computers in the hope of using rationally human resource, financial resource,
material resource and information resource for relative abundant economic
benefits.
Importance of MIS
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
Advantages:
• Can be a learning experience.
• Provides predictive power.
• Less expensive than trial and error method.
• Speed allows consideration of more options.
Disadvantages:
• Difficult to model a business system.
• High degree of mathematical skills required.
Structure of MIS
Hardware
All physical components of a computer system compose the computer hardware.
Important components include the central processing unit, input/output devices,
storage units and communication devices. Communication can be over fiber-optic
cables or wireless networks.
Software
Software provides the interface between users and the information system. Software
can be divided into two generic types: system software and applications. The system
software comprises of the operating system, utility programs and special purpose
programs. Applications are developed to accomplish a specific task. For users of MIS
it is much more important to understand the software than the hardware. Software
maintenance can take 50 to 70 percent of all personnel activity in the MIS function.
When the organization moves to implement an advanced information system the
hardware and software environment becomes more complex.
Database
A database is a centrally controlled collection of organized data. Central control
reduces redundancy and duplication of data. Data is stored in an organized and
structured way to facilitate sharing and improve availability to those who need it. The
database improves efficiency of storage by elimination of redundant files and
improves efficiency of processing by providing all required data in a single file rather
than separate files. This also improves efficiency of information retrieval.
Procedures
Three types of procedures are required for an MIS to operate effectively: user
instructions, instructions for input preparation and operating instructions for MIS
personnel who maintain the MIS.
Personnel
The personnel in the MIS function include computer operators, programmers, systems
analysts and managers. Human resource requirements should be assessed by
considering both the present system needs and the future system growth. The quality
of MIS personnel is a key factor in its effectiveness. An MIS manager needs a
combination of both managerial and technical skills.
make decisions for the user. At the very least, they allow human users to make more
informed decisions at a quicker pace.
Characteristics of DSS
(ii) They are designed to assist managers in their decision processes in semi-structured
or unstructured tasks.
(iv) DSS improve the effectiveness of the decisions; not the efficiency with which
decisions are being made.
Benefits of DSS:
i) A DSS enables the solution of complex problems that ordinarily cannot be solved
by other computerized approaches.
(ii)A DSS enables a thorough quantitative analysis in a very short time. Even frequent
changes in a scenario can be evaluated objectively in a timely manner.
(iii) DSS imparts ability to try several different strategies under different
configurations, quickly and objectively.
(iv) Data collection and model construction experimentations are executed with active
users’ participation; thus greatly facilitating communication among managers.
1. Model building
2. .'What if' analysis
3. .Goal seeking
4. .Risk analysis
5. Graphical analysis
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
Model building: •This allows decision makers to identify the most appropriate model
for solving the problem on hand. It takes into account input variables, interrelationships
among the variables, problem assumptions and constraints
.•'What-if' analysis : This is the process of assessing the impact of changes to model
variables, the values of the variables, or the interrelationships among variables. This
helps managers to be proactive, rather than reactive, in their decision making.
Goal seeking : It is the process of determining the input values required to achieve a
certain goal. For example, house buyers determine the monthly payment they can afford
(say for example, Rs. 5,000) and calculate the number of such payments required to pay
the desired house•)
Risk analysis : It is a function of DSS that allows managers to assess the risks
associated with various alternatives. Decisions can be classified as low risk, medium
risk, and high risk. A DSS is particularly useful in medium risk and high risk
environments
Graphical analysis : This helps managers to quickly digest large volumes of data and
visualize the impacts of various courses of action. graphical analysis can be used in
following situations:
•Forecasting activities
Office automation systems (OAS), also referred to as office information systems are
computer-based information systems whose primary purpose is to facilitate oral and
written communication. Such a system is a set of tools that gather, process, store,
retrieve, and disseminate information between individual workers, team of workers,
and business entities, both inside and outside the organization.
Process control systems (PCS), sometimes called industrial control systems (ICS),
function as pieces of equipment along the production line during manufacturing that
test the process in a variety of ways, and return data for monitoring and
troubleshooting. Many types of process control systems exist, including supervisory
control and data acquisition (SCADA), programmable logic controllers (PLC), or
distributed control systems (DCS), and they work to gather and transmit data obtained
during the manufacturing process.
The PCS can be a relatively simple item with a sensor, often called a primary
transducer, that receives an input, along with a controller that processes the input, and
a receiver that processes an output.
Advantages of EIS
• Trend Analysis
• Improvement of corporate performance in the marketplace
• Development of managerial leadership skills
• Improves decision-making
• Simple to use by senior executives
• Better reporting method
• Improved office efficiency
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
Disadvantage of EIS
• Knowledge Base
• Inference Engine
• Knowledge acquisition and learning module
• User Interface
• Explanation module
• User
interface: This component is essential for a non-expert user to interact
with the expert system and find solutions.
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
2. Domain Specificity: Expert systems are typically very domain specific. For ex.,
a diagnostic expert system for troubleshooting computers must actually perform
all the necessary data manipulation as a human expert would. The developer of
such a system must limit his or her scope of the system to just what is needed to
solve the target problem. Special tools or programming languages are often
needed to accomplish the specific objectives of the system.
5. Adequate Response time: The system should be designed in such a way that it
is able to perform within a small amount of time, comparable to or better than the
time taken by a human expert to reach at a decision point. An expert system that
takes a year to reach a decision compared to a human expert’s time of one hour
would not be useful.
8. Expertise knowledge: Real experts not only produce good solutions but also
find them quickly. So, an expert system must be skillful in applying its knowledge
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
9. Justified Reasoning: This allows the users to ask the expert system to justify the
solution or advice provided by it. Normally, expert systems justify their answers
or advice by explaining their reasoning. If a system is a rule based system, it
provides to the user all the rules and facts it has used to achieve its answer.
Stage # 2. Conceptualisation:
Once it has been identified for the problem an expert system is to solve, the next stage
involves analysing the problem further to ensure that its specifics, as well as
generalities, are understood.
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Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College
Vth SEM BBA
Stage # 4. Implementation:
During the implementation stage the formalised concepts are programmed into the
computer which has been chosen for system development, using the predetermined
techniques and tools to implement a ‘first-pass’ (prototype) of the expert system.
Theoretically, if the methods of the previous stages have been followed with diligence
and care, the implementation of the prototype should proceed smoothly. In practice,
the development of an expert system may be as much an art as it is a science, because
following all the rules does not guarantee that the system will work the first time it is
implemented. In fact, experience suggests the opposite. Many scientists actually
consider the prototype to be a ‘throw-away’ system, useful for evaluating progress but
hardly a usable expert system.
Depending on the types of problems encountered, the testing procedure may indicate
that the system was implemented incorrectly, or perhaps that the rules were
implemented correctly but were poorly or incompletely formulated. Results from the
tests are used as ‘feedback’ to return to a previous stage and adjust the performance of
the system.
MUKUND.G 19
Assistant Professor,Department of Commerce and Management
Seshadripuram First Grade College