Chapter 4: Software and Systems
When information systems are fully online and performing real-time activities, they are
considered one of two types of online processing systems:
Online Transaction Processing (OLTP)
Online Analytical Processing (OLAP)
These two systems work together to capture and transform data into useful information -
ANS-Online Transation Processing (OLTP): system supports core business functions by
handling sales, accounting, purchasing, and more
Online Analytical Processing (OLAP): systems focus on leveraging the data for information
Online Transaction Processing (OLTP) - ANS-It processes transactions by modifying the
database & adding and changing transaction data in real time
Online Analytical Processing (OLAP) - ANS-It processes reports and analytics by querying the
database to answer questions in real time
Different Levels of Information Systems - ANS-There are different levels of information systems,
each providing information for users at different levels of the company
Levels of Information Systems - ANS-Executive Support Systems (ESS): support strategic
decision making and are a subset of decision support systems
Decision Support Systems (DSS): assist in solving nonroutine problems and unstructured
decision making
Management Information Systems: assist in routine management activities
Transaction Processing Systems (TPS): process day-to-day business activities, provide a
foundation for other systems, and capture data that is fed through the hgiher-level systems
Transaction Processing Systems - ANS-used by workers to capture data; workers like cashiers
use TPS for basic business operations. Many of these basic business activities result in
accounting transactions
Management Information Systems - ANS-used by middle management for routine decisions;
these systems use data from transaction processing systems to support structured tactical and
operational decision making by providing pre-specified historical reports from TPS, such as
routine summary reports and exception reports. Financial statements are summary reports
, Decision Support Systems - ANS-used by upper-level management for nonroutine decisions;
these systems use both internal data and external data- for example, stock market data. They
can model data, do siumulations, and perform "what if" analyses. They can also use artificial
intelligence to perform tasks normally requiring human intelligence. The reporting format will be
suitable for making a specific decision at a specific point in time.
Executive Support Systems - ANS-used by executive leadership for strategic decisions; these
systems provide customized information and have the smallest group of users- executives
Transaction Processing - ANS-A modern-day TPS collects data continuously, in real time, for
day-to-day business activities. Because a TPS collects data as it is created, the system must be
available and have data integrity.
After data is collected, a TPS processes data in one of two ways: batch processing or real time
processing
Batch Processing - ANS-In batch processing, data is collected as it is generated and then is
processed later, at a scheduled time. This is most suitable for transactions that are not time
sensitive.
1. business events occur, and transactions are collected and organized into a batch
2. transaction ifle is created
3. transaction file is updated with additional batch transactions
4. transactions are processed at scheduled batch processing time
5. database is updated when batch is processed
Batch processing creates and stores a file of transactions that is processed at a scheduled time.
3 benefits of batch processing: efficiency, simplicity, quality of data
Real Time Processing - ANS-In real-time processing, a transaction is processed as it occurs.
This requires companies to have high processing capabilitiies readily available.
1. business events occue, and transactions are processed in real time
2. database is updated immediately
real-time processing eliminates the batch steps and updates the databse at the time a
transaction occurs
Software - ANS-the interface between the components and the users
-it governs how the other components work with one another and provides users with the means
of interacting with the system
When information systems are fully online and performing real-time activities, they are
considered one of two types of online processing systems:
Online Transaction Processing (OLTP)
Online Analytical Processing (OLAP)
These two systems work together to capture and transform data into useful information -
ANS-Online Transation Processing (OLTP): system supports core business functions by
handling sales, accounting, purchasing, and more
Online Analytical Processing (OLAP): systems focus on leveraging the data for information
Online Transaction Processing (OLTP) - ANS-It processes transactions by modifying the
database & adding and changing transaction data in real time
Online Analytical Processing (OLAP) - ANS-It processes reports and analytics by querying the
database to answer questions in real time
Different Levels of Information Systems - ANS-There are different levels of information systems,
each providing information for users at different levels of the company
Levels of Information Systems - ANS-Executive Support Systems (ESS): support strategic
decision making and are a subset of decision support systems
Decision Support Systems (DSS): assist in solving nonroutine problems and unstructured
decision making
Management Information Systems: assist in routine management activities
Transaction Processing Systems (TPS): process day-to-day business activities, provide a
foundation for other systems, and capture data that is fed through the hgiher-level systems
Transaction Processing Systems - ANS-used by workers to capture data; workers like cashiers
use TPS for basic business operations. Many of these basic business activities result in
accounting transactions
Management Information Systems - ANS-used by middle management for routine decisions;
these systems use data from transaction processing systems to support structured tactical and
operational decision making by providing pre-specified historical reports from TPS, such as
routine summary reports and exception reports. Financial statements are summary reports
, Decision Support Systems - ANS-used by upper-level management for nonroutine decisions;
these systems use both internal data and external data- for example, stock market data. They
can model data, do siumulations, and perform "what if" analyses. They can also use artificial
intelligence to perform tasks normally requiring human intelligence. The reporting format will be
suitable for making a specific decision at a specific point in time.
Executive Support Systems - ANS-used by executive leadership for strategic decisions; these
systems provide customized information and have the smallest group of users- executives
Transaction Processing - ANS-A modern-day TPS collects data continuously, in real time, for
day-to-day business activities. Because a TPS collects data as it is created, the system must be
available and have data integrity.
After data is collected, a TPS processes data in one of two ways: batch processing or real time
processing
Batch Processing - ANS-In batch processing, data is collected as it is generated and then is
processed later, at a scheduled time. This is most suitable for transactions that are not time
sensitive.
1. business events occur, and transactions are collected and organized into a batch
2. transaction ifle is created
3. transaction file is updated with additional batch transactions
4. transactions are processed at scheduled batch processing time
5. database is updated when batch is processed
Batch processing creates and stores a file of transactions that is processed at a scheduled time.
3 benefits of batch processing: efficiency, simplicity, quality of data
Real Time Processing - ANS-In real-time processing, a transaction is processed as it occurs.
This requires companies to have high processing capabilitiies readily available.
1. business events occue, and transactions are processed in real time
2. database is updated immediately
real-time processing eliminates the batch steps and updates the databse at the time a
transaction occurs
Software - ANS-the interface between the components and the users
-it governs how the other components work with one another and provides users with the means
of interacting with the system
