1. InformationSystem
withinthe Organization
Transaction Processing System
Enterprise Resource Planning
Functional Information System

2. Uses of Information System
within the organization
Successful organizations large and small
leverage available technologies to manage
business activities and assist in making
decisions
They use information systems to collect data
and process it according to the needs of the
analyst, manager or business owner
Businesses operate more efficiently by using
varied information systems to interact with
customers and partners, curtail costs and
generate revenues

3. Transaction Processing System
Customer Relationship
Management System
Business Intelligence System
Knowledge Management System

4. Transaction Processing Systems
o Meet the data collection, storage, processing
and outputting functionalities for the core
operations of a business
o TPS information systems collect data from
user inputs and then generate outputs based
on the data collected

5. Transaction Process System

6. Transaction Processing System
 An example of TPS system could be an online
Air Ticket Booking System. In such a system,
travelers select their flight schedule and
favorite seats (the input), and the system
updates the seats available list, removing
those selected by the traveler (the
processing)
The system then generates a bill and a copy
of the ticket (the output)
 TPS information systems can be based on
Real-time or Batch processing, and can help
business owners meet demand without
acquiring additional personnel

7. Customer Relationship
Management Systems
Synchronize sales and marketing
efforts
It accumulate and track customer
activities, including purchasing
trends, product defects and customer
inquiries
Allow customers to interact with
companies for service or product
feedback and problem resolutions

8. Customer Relationship
Management System
Businesses may also use CRM systems
internally as a component of their
collaboration strategies
As such, CRM information systems
allow business partners to interact
with each other as they develop ideas
and products
Collaboration can occur in real time
even when business partners are in
remote locations

10. Business Intelligence System
 BIS information systems may provide analyses that
predict future sales patterns, summarize current costs
and forecast sales revenues
 Business intelligence systems collect data from the
various data warehouses in an organization and provide
management with analyses according to lines of
business, department or any breakdown that
management desires
 For example, financial institutions use BIS systems to
develop credit risk models that analyze the number and
extent of lending or credit given to various sectors.
 These systems may use various techniques and formulas
to determine the probability of loan defaults

12. Knowledge Management System
 Organize and dissect knowledge and then redistribute or
share it with individuals of an organization
 The purpose of these information systems is to bring
innovation, improve performance, bring integration and
retain knowledge within the organization
 Although KMS information systems are typically marketed
to larger enterprises, small businesses can also benefit
from harvesting knowledge
 KMS information systems serve as a central repository
and retain information in a standard format
 These systems can help business owners maintain
consistency and enable speedy responses to customer
and partner inquiries

14. Models of Transaction Processing
1. Batch Processing
Batch processing is execution of a series of
programs (jobs) on a computer without
manual intervention
 Several transactions, called a batch are
collected and processed at the same time
The results of each transaction are not
immediately available when the
transaction is being entered; there is a
time delay

15. Batch Processing
In early days computer work was given on
punch cards and then these punch cards
behave as input to the computer. These
jobs or batch jobs were then executed by
the computer one by one
 So that computers were called as batch
computers or batch systems
 The work done by batch systems are in
parts i.e. one job is processed then
another job in the queue is processed and
so on

16. Batch Processing System Diagram

17. Best practice in using batch systems:
Used by large organizations and also
large jobs are done in sequence by the
system
So it is best practice to divide the big
job into small parts and run them so it
is easy to debug the job when error
comes
You can also set timer on computer for
each job so you can check and interact
with job to check and debug errors

18. Examples of batch systems
1.Payroll system
Batch systems are ideal for making
payrolls. The salaries of employees can be
printed at the end of month by the batch
systems, So the statements can be made easy
by using batch systems
2.Bank statements
At the end of month the bank makes
statements for each account holder. So these
bank statements can be made easily by batch
systems at the end of month

19. Advantages of Batch systems
 Repeated jobs are done fast in batch systems
without user interaction
 You don’t need special hardware and system
support to input data in batch systems
 Best for large organizations but small
organizations can also benefit from it
 Batch systems can work offline so it makes less
stress on processor

20. Advantages of Batch systems
Sharing of batch system for multiple
users
The idle time batch system is very less
You can assign specific time for the
batch jobs so when the computer is
idle it starts processing the batch jobs
i.e. at night or any free time
The batch systems can manage large
repeated work easily

21. Disadvantages of Batch systems
Computer operators must be trained for
using batch systems
It is difficult to debug batch systems
Batch systems are sometime costly
If some job takes too much time i.e. if
error occurs in job then other jobs will wait
for unknown time

22. Models of Transaction Processing
2. Real-time processing
Real time systems attempt to
guarantee an appropriate response to
a stimulus or request quickly enough
to affect the conditions that caused
the stimulus
 Each transaction in real-time
processing is unique; it is not part of
a group of transactions

24. Real-Time Processing Advantages
Making the switch to real-time processing
can provide your business with a number
of advantages
Real-time processing means the data will
be available to everyone in real-time, your
business will require fewer resources to
sync the system, reduce the amount of
paper used and improve the amount of
uptime for your system

25. Real-Time Processing Advantages
 Because all the data enters into the system
immediately, you will be able to monitor what is
happening within your business instead of
waiting until the following day to discover a
problem that could have been an easy fix if it
had been identified immediately
 Your team will be able to see errors as they
happen and take care of them right away to
improve the customer experience with
immediate billing and help your business run
more smoothly by increasing productivity and
keeping closer track of inventory

26. Which Data Requires
Real-Time Processing?
 While there is some data that can still use the
batch processing, much of the data your business
uses can benefit from real-time processing instead
 Any data that is valuable to your business’s
operations should be updated in real-time so it is
always available when anyone needs it. This allows
businesses to function more effectively
 For instance, you can monitor a sales promotion as
it is happening and make adjustments based on the
trends you identify through your monitoring

27. Which Data Requires Real-Time Processing?
Increase in the use of eCommerce,
customers expect this type of real-time
interaction with online retailers
 They don’t want to wait until the next
day to see these transactions appear on
their bank or credit card statements. They
want confirmation the purchase was
completed right away

28. Which Data Requires Real-Time Processing
 Ecommerce has become important for all
businesses today because of the urgency many
consumers now feel. With the use of real-time
processing for your systems, you will be able to
increase the level of customer satisfaction and
give your customers what they expect from an
online shopping experience
 Your business will be able to remain
competitive, as well as offer your customers new
features and experiences you wouldn’t
otherwise be able to offer with batch processing.
In the right situation, real-time processing gives
your customers exactly what they desire

29. Transaction Processing System Features
Performance
 Fast performance with a rapid response time is critical.
Transaction processing systems are usually measured by
the number of transactions they can process in a given
period of time.
Continuous availability
 The system must be available during the time period
when the users are entering transactions. Many
organizations rely heavily on their TPS; a breakdown
will disrupt operations or even stop the business.
Data integrity
 The system must be able to handle hardware or software problems
without corrupting data. Multiple users must be protected from
attempting to change the same piece of data at the same time, for
example two operators cannot sell the same seat on an airplane.

30. Transaction Processing System Features
Ease of use
 The system should be simple for them to
understand, protect them from data-entry
errors as much as possible, and allow them to
easily correct their errors
Modular growth
 The system should be capable of growth at
incremental costs, rather than requiring a
complete replacement. It should be possible to
add, replace, or update hardware and software
components without shutting down the system

31. Enterprise Resource Planning
(ERP) System
 A business management software— usually a
suite of integrated applications—that a company
can use to collect, store, manage and interpret
data from many business activities, including:
Product planning, cost
Manufacturing or service delivery
Marketing and sales
Inventory management
Shipping and payment

32. Enterprise Resource Planning (ERP) System
ERP provides an integrated view of core
business processes, often in real-time,
using common databases maintained by a
database management system
ERP systems track business resources—
cash, raw materials, production capacity—
and the status of business commitments:
orders, purchase orders, and payroll

33. Enterprise Resource Planning (ERP) System
The applications that make up the
system share data across the various
departments (manufacturing,
purchasing, sales, accounting) that
provide the data
ERP facilitates information flow
between all business functions, and
manages connections to outside
stakeholders

34. Characteristics of ERP System
An integrated system that operates in (or
near) real time without relying on periodic
updates[citation needed]
A common database that supports all
applications
A consistent look and feel across modules
Installation of the system with elaborate
application/data integration by the
Information Technology (IT) department,
provided the implementation is not done
in small steps

35. ERP System

36. Functional Information System
Based on the various business functions
such as Production, Marketing, Finance
and Personnel
Financial Information System:
 A sub-system of organizational management
information system. This sub-system supports
the decision-making process of financial
functions at the level of an organization

37. Functional Information System
Marketing Information System:
 This sub-system of management information
system provides information about various
functions of the marketing system of an
organization
 Marketing is another functional area of the
business organization, which is engaged in
marketing (selling) of its products to its
customers

38. Functional Information System
Production /manufacturing Information System
 Manufacturing or production information system
provides information on production /operation
activities of an organization and thus facilitates
the decision-making process of production
managers of an organization
Human Resources Information System
 This functional information system supports the functions of human
resource management of an organization. The human resource
management function, in its narrow sense, it also known as
personnel management .The function involves:
o Manpower planning
o Staffing
o Training and development
o Performance evaluation, and
o Separation activities