A Brief History of Information Technology

The “dark ages”: paper forms in file cabinets Computerized systems emerge

Initially for big projects like Social Security Same functionality as old paper-based systems

The “golden age”: databases are everywhere Most activities tracked electronically Stored data provides detailed history of activity

The next step: use data for decision-making The focus of this course! Made possible by omnipresence of IT Identify inefficiencies in current processes Quantify likely impact of decisions

INFORMATION INFORMATION

SYSTEMS IN THESYSTEMS IN THE

ENTERPRISEENTERPRISE

Traditional vs. Electronic Commerce

Source: Schneider and Perry

Advantages of Electronic Commerce

Increased salesReach narrow market segments in

geographically dispersed locationsCreate virtual communities

Decreased costsHandling of sales inquiriesProviding price quotesDetermining product availability

Disadvantages of Electronic CommerceLoss of ability to inspect products from

remote locationsRapid developing pace of underlying

technologiesDifficult to calculate return on investmentCultural and legal impediments

The process of e-commerce

1. Attract customers Advertising, marketing

2. Interact with customers Catalog, negotiation

3. Handle and manage orders Order capture Payment Transaction Fulfillment (physical good, service good, digital good)

4. React to customer inquiries Customer service Order tracking

MAJOR TYPES OF SYSTEMS

Decision support systems (DSS) Management information systems (MIS) Office automation systems (OAS) Transaction processing systems (TPS)

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TRANSACTION PROCESSING SYSTEM

TPS is a computerized system that performs and records the daily routine transactions necessary to conduct the business.

At operational level, routine activities are highly structured. Hence, computerized systems like TPS can be successfully used to not only to record but also to perform the transactions.

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TYPICAL TPS APPLICATIONS

Sales and Marketing Order Entry and Distribution System CRM

Finance and Accounting Financial Accounting, Receivable and Payable Management Cash & Funds Management, Short Terms Budgeting Inventory Management

Personnel Payroll, Benefit Systems Personnel Records

Office Automation Systems are designed to assist the data workers to achieve better coordination and improved efficiency in terms of speed of processing data.

Data workers are those who are mainly involved in the processing of data rather than creating them. They consists primarily of secretaries, book-keepers, filing clerks and junior mangers whose jobs are principally to use, manipulate and disseminate information.

OFFICE AUTOMATION SYSTEMS (OAS)

Toward a “paperless” officeRedesign of work flowIntegrated softwareErgonomic designBright, cheerful work space

EXAMPLE: PRESENTATION GRAPHICS

OFFICE AUTOMATION SYSTEMS (OAS)

DECISION SUPPORT SYSTEMS (DSS)

DSS help managers make decisions that are unique, rapidly changing, and not easily specified in advance. The basic features of DSS systems areFlexible, adaptable, quickUser controls inputs/outputsNo professional programmingSupports decision processSophisticated modeling tools

Transaction Processing Systems

Transaction processing systems record and manage transaction data but convert little or none of it into information.

One of their main purposes is to provide the data that other information Systems need

Types of Processing

Definition

Batch processing is the processing of previously collected data. The processing occurs without any interaction with users

How it works and why use it

Data is collected and then processed at a different time to the actual transaction.

Batch processing is particularly useful for operations that need the computer or peripheral devices such as a printer for an extended time.

What is the best data type for Batch Processing?

Credit card purchases?ATM withdrawals?Share purchases and sales?Electricity Bills

Define the type of data that is best suited to batch processing.

Advantages

Can be run regularly such as midnight. Reduces cost as equipment can be utilised during quiet time without interrupting other activities.

Labour cost reduction as it is a fully automated process without the need for a human operator

Processing of data can be outsourced to another company

Disadvantages

Process must have exclusive access and control over its data files. It cannot share them with another task.

Batch job will halt immediately if an error occurs in any one of the tasks

Data which is being processed is not fully current

Practical Exercise: Task Scheduler

What types of tasks can be scheduled. Why do you think you’d want them done in down time?

Real Time Processing

Real time processing refers to processing that occurs as the transactions arrive. It is not delayed like batch process and is more likely to be directly under the users control.

What is the best data type for Real Time Processing?

Real time processing should be used with data or functions that must reflect the current situation.

Examples Sensors – A porch light switches on when movement is detected

Stock market transactions during which prices are constantly changing.

Advantages

Data can be processed and viewed so it reflects a changing environment.

Real time processing tasks can be interrupted and new ones started in response to a new situation

Processing jobs can be of almost any scale, from large – video capture to small a sensor tripping an alarm.

Disadvantages

Possible need for greater processing requirements.

Real time nature means any uncorrected errors may have greater consequences as RTP generally only takes place once.

Explain the following

Data Validation

Data Validation and Processing

Data validation is vital in RTP as any error will distort the picture given of the real time environment. Correction of this is difficult

Data validation is vital in Batch Processing as it could stop the batch job which will need to be restarted after the data is corrected.

Data Validation

Data validation is when data entered by users is checked by the software to see if they are within the acceptable range of values

Data can be validated on the basis of:

The correct data type

The correct sign – positive or negative

Required data – example all fields need to be filled

Within acceptable data range – example age must be from 18 to 100

Input masks – example ### AAA to specify format

Reduced input choice via radio buttons or dropdown menus

Validate input against external database of correct data

Travel booking System Participants and Users Example

Travel booking System Participants and Users Example continued

Participants in a ticket booking system include reservation clerks who directly access the reservation system.

Users of the system is the consumer because they benefit through its operation by receiving a confirmed booking. The consumer can also be a direct participant in the RTP when they make a reservation for a seat via the internet.

Participants = Those who run the system

Users = Those who benefit from it