TPS Vs MIS
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Transaction processing systems (TPS) support routine operations and management while management information systems (MIS) provide decision-making support using data from TPS. MIS can address structured problems through optimization, satisficing, or heuristics models. They provide managers with regular reports from various functional areas like finance, manufacturing, marketing, logistics, and human resources to control and plan operations. Decision support systems (DSS) are used for unstructured problems through flexible presentation of internal and external data with simulation and statistical analysis to support multiple decision approaches.
TPS Vs MIS
- 1. TPS Vs MIS Dr. Kamal Gulati
- 2. 2 Management Information Systems Transaction Processing Systems (TPS) – Support operation – Management and control – Routine, normal operations Management Information Systems (MIS) – Provide decision- making support for routine, structured decisions – Closely linked to and fed by TPS
- 3. 3 Management Information Systems • Terminology Confusion –MIS = the study of information technology in business settings –But, MIS is also term to refer to class of systems used to support operational and tactical decisionmaking
- 4. 4 A Model for Problem Solving • Decision Making Phase –Intelligence gathering –Design –Choice • Implementation • Monitoring
- 5. 5 Decision Making • A step in problem solving • Intelligence gathering – Definition of problem – Data gathered on scope – Constraints identified • Design phase – Alternatives identified and assessed • Choice – Selection of an alternative
- 6. 6 Structured vs. Unstructured Problems • Structured problems lend themselves to programmed decisions –The implication is that a repeatable process can be employed and these can be automated • Unstructured problems require unprogrammed decisions
- 7. 7 Unstructured Problems • Can be addressed (or partially addressed) with Decision Support Systems
- 8. 8 Structured Problems • Can be addressed by an MIS • Three decision models or techniques –Optimization • Find the best solution –Satisficing • Find a solution which meets certain criteria –Heuristics • Rule-based solution generation
- 9. 9 Goals of an MIS • Provide managers with information • Regular, routine operations • Control, organize and plan better
- 10. 10 Typical Inputs and Outputs • Inputs: Information from the TPS • Outputs: hard and softcopy reports –Scheduled reports –On-demand reports –Key-indicator (business fundamentals) –Exception reports
- 11. 11 Functional Perspectives of MIS • Financial MIS –Will integrate information from multiple sources –Functions • Costing • P&L reporting • Auditing • Funds management
- 12. 12 Functional Perspectives of MIS • Manufacturing –Design and Engineering –Master Production Scheduling –Inventory Control –Materials Planning –Manufacturing and Process Control –Quality Control
- 13. 13 Functional Perspectives of MIS • Marketing –Market research • Web-based market research –Pricing
- 14. 14 Functional Perspectives of MIS • Transportation and Logistics –Route and schedule optimization • Human Resources • Accounting
- 15. 15 Decision Support Systems • Used for unstructured problems • Characteristics – Data from multiple sources internal and external to organization – Presentation flexibility – Simulation and what-if capability – Support for multiple decision approaches – Statistical analysis
- 16. 16 Components of a DSS • Model management software –Provides a variety of solution models • Financial, statistical, graphical, project management • Dialogue Manager –Allows user interaction with DSS
- 17. 17 Group Decision Making Systems • Very interesting field • How can information technology improve how decisions are made by groups?
- 18. 18 Group Decision Making Systems • Applications – Where time is critical – Where participants are geographically dispersed – Where authority obstructs communication – Military – Business – Government
- 19. 19 Group Decision Making Systems • Common characteristics – Meeting moderation/facilitation – Signed and anonymous comments – Structured deliberations • Presentation period • Comment period • Automated collation of comments • “Voting” • Face-to-face and remote
- 20. 20 Executive Information Systems • What information does a chief executive of board member require?
- 21. 21 Executive Information Systems • High level with drill down • Key business and industry data • Structured and unstructured information –Structured: MTD orders –Unstructured: Industry newsfeed • Graphical