UNIT IV

TRANSACTION PROCESSING SYSTEM

Transaction processing is a type of information system that collects, stores, modifies and
retrieves the data transactions of an enterprises. TPS also attempt to provide predictable
response times to requests, although this is not as critical as for real time systems. Each
transaction is usually short duration and the processing activity foe each transaction is
programmed in advance. A TPS is a software system, or software/ hardware combination,
that supports transaction processing.

History
The first transaction processing system was SABRE, made by IBM for American airlines,
which became operational in 1970. Designed to process up to 83000 transactions a day, the
system ran on two IBM 7090 computers.
SABRE was migrated to IBM SYSTEM/360 computers in 1972, and became an IBM product
first as airline control program and later as transaction processing facility. In addition to
airlines TPF is used by large banks, credit card companies, and hotel chains.

Processing types
Transaction processing is distinct form and can be contrasted with other computer processing
models, such as batch processing, sharing, and real time processing.

 Batch processing
 Real time processing

Batch processing:
Batch processing is execution of a series of programs 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.

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.
 Transaction processing system features
Performance
Continuous availability
Data integrity
Easy of use
Modular growth

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.
Ease of use
Often users of transactions processing systems are casual users. 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.

The following features are desirable in a database system used in transaction processing
systems:
Good data placement:
The database should be designed to access patterns of data from many simultaneous users.
Short transactions:
Short transactions enable 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 in to 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.

 The use of computer is to execute a variety of office operations, such as word processing,
accounting, and e-mail. Office automation almost always implies a network of computers
with a variety of available programs

OFFICE AUTOMATION SYSTEM

      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.
Office automation helps in optimizing or automating existing office procedures. The
backbone of office automation is a LAN, which allows users to transfer 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.
 Advantages are:
1. Office automation can get many tasks accomplished faster.
2. It eliminates the need for a large staff.
3. Less storage is required to store data.
4. Multiple people can update data simultaneously in the event of changes in schedule
5.     Businesses can easily purchase and stock their wares with the aid of technology. Many of
the manual tasks that used to be done by hand can now be done through hand held devices
and UPC and SKU coding. In the retail setting, automation also increases choice. Customers
can easily process their payments through automated credit card machines and no longer have
to wait in line for an employee to process and manually type in the credit card numbers.
6.      Office payrolls have been automated which means no one has to manually cut checks, and
those checks that are cut can be printed through computer programs. Direct deposit can be
automatically set up and this further reduces the manual process and most employees who
participate in direct deposit often find their paychecks come earlier than if they'd have to wait
for their checks to be written and then cleared by the bank.
7.      Other ways automation has reduced employee manpower on tasks is automated voice
direction. Through the use of prompts, automated phone menus and directed calls, the need
for employees to be dedicated to answer the phones has been reduced, and in some cases,
eliminated.
      The term office automation refers to all tools and methods that are applied
to officeactivities which make it possible to process written, visual, and sound data in a
computer-aided manner. 
     Office automation is intended to provide elements which make it possible to simplify,
improve, and automate the organization of the activities of a company or a group of people
(management of administrative data, synchronization of meetings, etc.). 
     Considering that company organizations require increased communication, today, office
automation is no longer limited to simply capturing handwritten notes. In particular, it also
includes the following activities:
 exchange of information
 management of administrative documents
 handling of numerical data
 meeting planning and management of work schedules
    The term "office suite" refers to all software programs which make it possible to meet
office needs. In particular, an office suite therefore includes the following software programs:
 word processing
 a Spread sheet
 a presentation tool
 a Database
 a scheduler
The main office suites are:
 Open Office  (freeware)
 Apple Works
 Corel word Perfect
 IBM/Lotus Smart Suite
 Microsoft Office
 Sun Star Office

DECISION SUPPORT SYSTEM

A decision support system is an information that supports business or organizational
decision making activities. DSSs serve the management, operations and planning levels of an
organization and help people make decisions about problems that may be rapidly changing
and not easily specified in advance- i.e. unstructured and semi structured decision problems.
Decision support systems can be either fully computerized or human powered or a
combination of both.

History
The concept of decision support has evolved mainly from theoretical studies of organizational
decision making done at the CARNEGIE INSTITUTE OF TECHNOLOGY during the late
1950s and early 1960s, and the implementation work done in the 1960s. DSS became an area
of research of its own in the middle of the 1970s, before gaining in intensity during the
1980s. in the middle and late 1980s, EXECUTIVE INFORMATIONS SYSTEMS, group
decision support systems and organizational decision support systems evolved from the
single users and model oriented DSS.

Components
Three fundamental components of a DSS architecture are:

1. The database
2. The model
3. The user interface

Development frameworks:
The early framework of decision support system consists of four phases:
Intelligence – searching for conditions that call for decision
Design – developing and analyzing possible alternative actions of solutions
Choice – selecting a course of action among those
Implementation – adopting the selected course of action in decision situation.

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 “decision” are generated
4. Decisions- results generated by the DSS based on user criteria

EXECUTIVE INFORMATION SYSTEM

An executive information system also known as executive support system, is a type of

management support system that facilitate and supports senior executive information and
decision-making needs. It provides easy access to internal and external information relevant
to organizational goals. It iscommonly considered a specialized form of DSS.
EIS emphasizes 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’ analyses, compare, and highlight trends in important variables so that they
can monitor performance and identity opportunities and problems.

History
Traditionally executive information systems were mainframe computer-based programs. The
purpose was to package a company’s data and to provide sales performance or market
research statistics for decisions makers, such as, marketing directors, chief executive officer,
who were not necessarily well acquainted with computers. The objective was to develop
computer application that highlighted information to satisfy senior executives needs.
Typically, an EIS provides only data that supported executive level decision not all company
data.

Components
EIS components can typically be classified as:

 Hardware
 Software
 User interface
 Telecommunications
Hardware – when talking about computer hardware for an EIS environment we should
focus on the hardware that meets the executives need. 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
2. The central processing unit
3. Data storage files
4. Output devices

Software – choosing the appropriate software is vital an effective EIS. therefore, the
software components and how they integrate the data in to one system are important. A
typical EIS includes four software components:

1. Text handling software

2. Database
3. Graphic base
 4. Model base

User interface – An EIS must be efficient to retrieve relevant data for decision
makers, s 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.
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. It can be both by scientific and business means.

Applications of EIS

 Manufacturing
 Marketing
 Financial

Advantages:

1. Easy for upper level executives to use, extensive computer experience is not required
in operations
2. Provides strong drill down capabilities to better analyze the given information
3. Information that is provided is better understand
4. EIS provides timely delivery of information. Management can make decisions
promptly.
5. Improves tracking information
6. Offers efficiency to decision makers

Disadvantages:

1. system dependent
2. limited functionality, by design
3. information overload for some managers
4. benefits hard to quantify
 5. high Implementation costs
6. excessive cost for small company
7. need good internal processes for data management

ARTIFICIAL INTELLIGENCE
In artificial intelligence an expert system is a computer system that emulates the decision
making ability of a human expert. Expert system are designed to solve complex problems by
reasoning through bodies of knowledge represented mainly as if then rules rather than
through conventional procedural code. The first expert systems were created in the 1970s and
then proliferated in the1980s. expert systems were among the first truly successful forms of
artificial intelligence software. An expert system is divided in to two subsystems: the
inference engine applies the rules to the know facts to deduce new facts. Inference engines
can also include explanation and debugging abilities.
Advantages
The goal of knowledge-based system is to make the critical information required for the
system to work explicit rather than implicit. In a traditional computer program the logic is
embedded in code that can typically only be reviewed by an IT specialist. With an expert
system the goal was to specify the rules in format that was intuitive and easily understood,
reviewed, and even edited by domain experts rather than IT experts. The benefits of this
explicit knowledge representation were rapid development and ease of maintenance.
Ease of maintenance is the most obvious benefit. This was achieved is two ways. First, by
removing the need to write conventional code, many of the normal problems that can be
caused by even small changes to a system could be avoided with expert systems. Essentially,
the logical flow of the program was simply a given for the system, simply invoke the
reference engine. This is also was a reason for the second benefit: rapid prototyping. With an
expert system shell it was possible to enter a few rules and have a prototype developed in
days rather than the months or year typically associated with complex IT projects.

EXPERT SYSTEM
An expert system is the highest form of automation of the management computing office
which allows document communication and manipulation. Decision support systems help
with problem-solving by allowing data and model manipulation. Expert systems go beyond
conventional manipulation of this kind, as they allow experts to 'teach' computers about their
fields so that fewer expert decision-makers can support the system more of the decision-
making process.
Expert systems are one of the most cutting-edge information technology facts. That is, in
some of the most complex and least-understood human information handling tasks, i.e.
decision-making, problem-solving, diagnosis and learning, they help people. We do this by
holding a large amount of factual information on a subject area, along with lines of reasoning
employed in that field by human experts.
Expert System Components
The key components of Expert System are as followings,
1. UserInterface:
It contains a computerized system between the user and the machine for friendly
communication. This system provides an interface to the user in a graphical way.
2. InterferenceEngine:
It regains & determines the data process. It performs this task to deduce new facts
which are subsequently used to draw further conclusions. This component is
associated with an expert system as the brain of the expert system.
3. KnowledgeBase:
This is the most important element of an expert system because it holds the expert's
knowledge of problem-solving. It is here that the expert's elicited knowledge is stored.
It contains the rules, facts and object descriptions, etc. The knowledge base is always
stored in the data with the newest expert system products. The knowledgebase
information is all that is needed to understand & formulate the problem, and then
solve it.
4. DataAcquisitionSubsystem:
The specialist has to learn the information reflected in the knowledge base.
Information acquisition software is used by a person who has problem experience to
build, incorporate or modify the base of knowledge. Potential knowledge sources
include human experts, research reports, textbooks, databases and the experience of
the user himself.
Advantages of Expert System
Expert System (ES) gives clear responses for routine actions, procedures and activities .
 Expert System (ES) retains significant levels of the knowledge base.
  Expert System (ES) supports organizations to explain the rationale of their decision-
making.
Disadvantages Expert System
 Expert System (ES) doesn't reply creatively as a human expert in unusual ways.
 Expert System (ES) requires more technical aspects due to this difficult in use.
 Highly costlier system.