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    1.2-Difference Between Operational and Informational Systems

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    Abdul Hameed
    Operational systems are used to run the core day-to-day business processes like processing orders, invoices, shipments, and payments. They input data into databases through individual transactions. Informational systems watch how the business runs and support strategic decision making by extracting aggregated and analyzed data from databases. They provide information on top products, problem regions, margins, and other metrics to improve the business. The key differences are that operational systems focus on current transactional data accessed frequently for updates, while informational systems use archived and derived data for complex ad hoc queries by management.

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    1.2-Difference Between Operational and Informational Systems

    Uploaded by

    Abdul Hameed
    123 views6 pages
    Operational systems are used to run the core day-to-day business processes like processing orders, invoices, shipments, and payments. They input data into databases through individual transactions. Informational systems watch how the business runs and support strategic decision making by extracting aggregated and analyzed data from databases. They provide information on top products, problem regions, margins, and other metrics to improve the business. The key differences are that operational systems focus on current transactional data accessed frequently for updates, while informational systems use archived and derived data for complex ad hoc queries by management.

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    1.2-Difference between Operational and Informational Systems

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    Operational systems are used to run the core day-to-day business processes like processing orders, invoices, shipments, and payments. They input data into databases through individual transactions. Informational systems watch how the business runs and support strategic decision making by extracting aggregated and analyzed data from databases. They provide information on top products, problem regions, margins, and other metrics to improve the business. The key differences are that operational systems focus on current transactional data accessed frequently for updates, while informational systems use archived and derived data for complex ad hoc queries by management.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    123 views6 pages

    1.2-Difference Between Operational and Informational Systems

    Uploaded by

    Abdul Hameed
    Operational systems are used to run the core day-to-day business processes like processing orders, invoices, shipments, and payments. They input data into databases through individual transactions. Informational systems watch how the business runs and support strategic decision making by extracting aggregated and analyzed data from databases. They provide information on top products, problem regions, margins, and other metrics to improve the business. The key differences are that operational systems focus on current transactional data accessed frequently for updates, while informational systems use archived and derived data for complex ad hoc queries by management.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    Difference between

    Operational and
    Informational Systems
    Difference between Operational and Informational Systems
    • Operational Systems make the wheels of business turn.
    • Operational systems are online transaction processing
    (OLTP) systems.
    • These are the systems that are used to run the day-to-day
    core business of the company. They are the so called bread-
    and-butter systems.
    • Operational systems make the wheels of business turn.
    They support the basic business processes of the company.
    These systems typically get the data into the database
    Difference between Operational and Informational Systems
    • Each transaction processes information about a single
    entity such as a single order, a single invoice, or a single
    customer. For example
    • Take an order
    • Process a claim
    • Make a shipment
    • Generate an invoice
    • Receive cash
    • Reserve an airline seat
    Difference between Operational and Informational Systems

    • Informational Systems watch the wheels of business turn.


    • On the other hand, specially designed and built decision-support
    systems are not meant to run the core business processes.
    • They are used to watch how the business runs, and then make
    strategic decisions to improve the business.
    • Decision-support systems are developed to get strategic information
    out of the database, as opposed to OLTP systems that are designed
    to put the data into the database.
    Difference between Operational and Informational Systems

    • Decision support systems are developed to provide


    strategic information. For example,
    • Show me the top-selling products
    • Show me the problem regions
    • Tell me why
    • Alert me when a district sells below target
    • Show me the highest margins
    Difference between Operational and Informational Systems
      Operational Informational

    Data Content Current values Archived, derived, summarized

    Data Structure Optimized for transactions Optimized for complex queries

    Access frequency High Medium to low

    Access type Read, update, delete Read

    Usage Predictable, repetitive Ad hoc, random, heuristic

    Users Large number Relatively small number

    Response time Sub-seconds Several seconds to minutes

    Table 1‑1 Difference between Operational and Informational Systems

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