1 approach to Management e7 “eran teelearer cannon or CHAPTER FOUR (CBIS) x ; COMPUTER-BASED INFORMATION SYSTEM i rs stem whi Computer based information system is a man-made-information S¥°°% process the data inte ! computers and other related resources in collecting data, heir various levels fo jich utilizes information yr decision and_make the information available to-managers at t naking, ailable_to_m: a infort ia is colle yr externally, Tis an information system wherein data is collected internally and/o j al managers in their day in day ssed into information and made available to managers t0 assist in th Out routine/functions of monitoring, planning and control. Elements of Computer Based Information Svstem The elements of CBIS comprises of the components that make the system vor effectively and efficiently. They are: 1. Data 2. Procedure 3. Information 4. Hardware 5. Software 6. People-ware Data represents the informational raw materials that need to be collected, analysed and generally worked on to produce meaning (information). Procedure connects and converts the data into information. The data processing methods that would produce useful information to managers can either be manual, mechanical or electronic. Information is processed data. It is the product of the data processing cycle. The data processing cycle involve: Originating/recording, Classification, Sorting, Calculation, Summarization, Storing, Retrieval, Reproduction, and Communication. 21) Pageroach to Management ‘Management Information System: A Practical APF i Environment Ve i. Guantitatve Techniques in a Computeize ized into the following four The nine (9) steps in data processing above can be summa {zation and Report steps: Data Collection, Data Classification, Data Maintenance/Summat Generation. Hardware is the physical components of the computer. Rortrare ne trey proerammetoniine tclion: lait ci cated (HCTUse Cr gusta ans for a given task; People ware is the human resources that make things work in the computer department pes of Computer Based Information System ction Processing Systems (TPS) - ‘Trans TPS is an information system that performs the recording and processing daily routine ss activities. They are used for ted through the occurrence of busine routine tasks in which data items or transactions must be processed so that operations can continue. Example of TPS includes handling of sales orders, purchase orders, payroll an be used to produce management information such. as items and stock records. It c: reports_on cumulative sales figures to-date. total amounts owed to suppliers or owed _by debtors, total stock turnover ete TPS handles day-to-day business operations and it is the lowest level in an organization’s use of information system. It is an input to other Information systems. Its benefits are operations efficiency, fast tumarounds, reduction in inventory and staff saving. 2, Executive Support System (ESS) ESS provides strategic information tailored to the needs of executives, top management and other decision makers. It is a highly interactive tool/system for helping managers to identify and address problems and opportunities by collecting, analysing, and presenting data in a format easy to use for them. The first goal of an ESS is to provide immediate and easy access to information critical to accomplishing an organization's strategic objectives from both internal and external databases... 22 | Page wena ~—ntermation Stem: hPracisl Approach to Management Mrresonste Techonques in » Computerived Em The design philosophy of ESS is: «it should be easy to use « casy manipulation of data : ecast, trends. analysis, for «it should provide tools for analysis ¢.g. ratio Itaids e.g. graphic, numeric, colourful presentations 3. Decision Support System (DSS) rt semi-structured and and models to suppor ch must be made DSS" combines data, analytical: tools, are decisions whi unstructured decision making. Unstructured decisions : he decision ance most of tl 0 get it). DSS use data n_making tactical a number of in situations where it is _not_possible to specify in adv procedures to follow (several ‘right’ answers, no precise WAY c collected by ‘TPS to-evaluate-business-models and-assist- managers i x anager consider decisions. A DSS does not make decisions, but allow the manager consid m ‘ SS package alternatives and evaluate them under a variety of potential conditions. A D! gi m » expert systems, etc. include: modelling, spreadsheet, linear programming, forecasting, expert systems. 4. Expert System (ES) ES is a form of decision support system that allows users to benefit from expert knowledge and information. It is a computer-based application that attempts to incorporate as much knowledge of a particular discipline in a database as is held by expert practitioners and theorists in the field. An ES assists with decision making, where the process of analysing the problem calls for the application of logical reasoning rather than computation work. Example of ES is a medical computer system that can be used to analyse the systems of a patient's condition and assist in reaching a diagnosis; legal a used by solicitors to analyse a case, all through the database. ES uses artificial intelligence (computer programmed to imitate certain features of human reasoning). 5. Manageme: _.formation System (MIS) MIS is a CBIS iat produces standardized sports ih summarised structured fi M form. MIS uses a database created by TPS and iti : £2 and iCintegrates the database of the different eparunents. 3 | Page etporcacn vo mannan synem: a practic \ VA A reeeaereed (rere A information Me cuartnative Techniques in 2G ‘The design philosophy of ESS is: it should be easy to use « casy manipulation of data forecast trends sis, forecast: «it should provide tools for analysis ¢-£ ratio analy ons. « Itaids e.g, graphic, numeric, colourful presentatio 3, Decision Support System (DSS) port semi-structured and and models to SUP ‘ons which must be made DSS combines data, analytical tools, unstructured decision making Unstructured decisions are dects' ; = ee ance most of in situations where it isnot possible to. [Link] adva where _ii_s_not-_po! = get it). DSS. use data in_making tactical low the manager consider number of no precise Way to procedures to follow (several ‘right’ answers. and_assist- managers. collected by TPS. 10 evaluate-business-models decisions. A DSS does not make decisions, but allo’ ential conditions. A DSS package alternatives and evaluate them under a variety of pot casting, expert systems, ¢tc. include: modelling, spreadsheet, linear programming, fore 4. Expert System (ES) ES is a form of decision support system that allows users to benefit from, expert knowledge and information. It is a computer-based application that attempts to incorporate as much knowledge of a particular discipline in a database as is held by expert practitioners and theorists in the field. An ES assists with decision making, where the process of analysing the problem calls for the application of logical reasoning rather than computation work. Example of ES is a medical computer system that can be used to analyse the systems of a patient’s condition and assist in reaching a diagnosis; legal ape used by solicitors to analyse a case, all through the database, ES uses artificial intelligence (computer programmed to imifate certain features of human reasoning). 5. Manageme formation System (MIS) MIS i Be i i‘ is a CBIS at produces standardized reports in summarised, structured f ’ uses a database created by TPS and it integrates the database of the differ “en departmentssenseaman omy sytemia race prone Meenae? 6. Office Automation System (OAS) and software used to digitally create, OAS refers to the varied computer machinery mation needed for accomplishing basic collect, store, manipulate, and relay office inforn tasks and goals. 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 allows users to transmit data, mail ‘The backbone of office automation is a. LAN_which including dictation, typing, and even voice across the network. All office functions, and records management, telephone and telep! lar term in filing, copying, fax, Telex, microfilm hone switchboard operations, fall into this category. Office automation was a poll the 1970s and 1980s as the desktop computer exploded onto the scene: 7. Knowledge Work System In every organization, there exist office workers and knowledge workers. The knowledge workers are technical experts such as programmers, system_analysts, strategists etc. KWS assist them in preparing and presenting their assignments in a manner as to allow for effective decision making. Examples are CAD, CAATs, and SPSS ete. 8. Production Support System (PSS) PSS provides an innovative and automated approach to production processes. It ranges from_using moder _ software to design new products to automated monitoring and and devices. Examples are CAD, CAM. optimizing production process’ a Artificial Neural Networks (ANN) ANNs are made up of interconnecting artificial neurons (i.e. programming constructs tha mimic the properties of biological neurons). ANN may either be used to gain a1 understanding of biological neural networks, or for_solving artificial i ligenc problems. Neural Networks have been applied successfully to speech recognition, imag analysis and adaptive control in order to construct software agents (in computer an video games) or autonomous robots.CHAPTER NINETEEN BUSINESS DATA PROCESSING SYSTEM JS Batch Processing System nd = » grouped together an This igs data processing iechbique Where related transactions are SOUP wit n run or executed (0 completion transmitted for processing. These transactions are ther gelected through scti pts or without human interaction, so that all input data is pre jes as input, process the data. command-line parameters. A program tales a set of data fil requires separate Programs for eh rece cinuipek deumidlexBaieh pooesin high volume of data. For input, process and output. It is an efficient way of processing billing system. example: Payroll system, Examination system and On-line Processing It refers to a transaction processing systems that facilitates and manages transaction- | transaction processing. It also quest. Example oriented applications, typically for data entry and retrieval refers to processing in which the system responds immediately to user 12 is an ATM OLTP is used in banking, ais slines, supermarkets and manufacturing. Applications include e-commerce, ¢-trading, e-banking etc (Real-Time Processing RIP is a transaction processing systems that are subject to a “real-time constraint—1e, operational deadlines from events to system response. In a real time processing, there is a cess and output of data. Data has to be processed ina small-stipulated otherwise it will create problems for the system. For example continual i time period (real time), assembly line robots and radar system. hat is the difference between Batch Processing Online Processing and Real-time Processing? 179 | PageWw [Management information System: A Practical A ‘vat ntetive Techaigues i 3 Computerized Environment Batch processing is used when there is a lot of transactions affecting a high percentage of master file records and the response needed is not immediate, usually until the end of the week or month. A good example of this in a large, national business would be payroll processing, where nearly every master file record will be affected. The data is collected over a period of time, then input and verified by clerks (verified means input by someone ‘ else and then both inputs are compared by computer) and processed centrally The transactions are entered in batches by keyboard and stored in transaction files. These batches consist of thirty or so records which are given a batch control ID. The batches are then run through a validation process and to make sure the batches balance a computed total is compared with a manually produced total. This helps to ensure that all data is entered without error or omission. The actual updating of master files only takes place after verification and validation are complete. This means batch processing is often run overnight, unattended, A new master file is produced as a result of a batch processing run, The original master file is kept along with a previous version. After processing the output is produced, and is usually printed media such as payslips or invoices, although this is changing with the advent of the web. ‘There is feally no such thing as real-time, The best you will get is a few milliseconds from input to response. However such fast systems are used in critical systems that control aircraft or the manufacture of sensitive or dangerous compounds. Online processing means users directly enter information online (usually, onfine, in this case, means online (0 a central processor, rather than its modern connotation of the Internet, but it could mean both), It is validated and updated directly onto the master file, No new file is created in this case. Therefore, there is near immediate input process, and outputeImagine a cash dispenser transaction or booking a holiday at @ travel agent or over the Internet. Compared with batch processing the number of transactions will be few. 180| Pacesi approach to Managemen fe environment Menagament norman ste Arata ed, time-share ete alised, distributed, tim Online comes in many different flavours such as centralised, ¢ peed needed, number of users, and the choice of architecture will depend on cost, number inane <4 time needed for a response. VA Distributed Processing p = processing of an individual This is the use of more than one processor to perform the proc 1 a se more than one task. It also refers to any of a variety of computer systems that us ‘ ‘i cal area networks computer, or processor, to run an application. It often refers to loc ‘ at vi sites. Mo! (LANs) designed so that a single program can run simultaneously at various sit st . : “PU distributed processing systems contain sophisticated software that detects idle CPUs on the network and parcels out programs to utilize them Database Management System DBMS is simply the software that permits an organization to centralize data, manage them efficiently, and provide access to the stored data by application programs. DBMS acts as an interface between application programs. It has a data definition language, a manipulation language and a data dictionary 181 |