IGNOU MBA MMPC-08: Information Technology for Managers
Unit 7: Transaction Processing System (TPS), Decision Support System (DSS), and Executive Information System (EIS)
Introduction
This unit explores three key information systems—Transaction Processing Systems (TPS), Decision Support Systems (DSS), and Executive Information Systems (EIS). Each system serves a unique purpose in business operations, decision-making, and strategic planning.
1. Transaction Processing System (TPS)
1.1 Definition and Characteristics
- TPS automates routine, repetitive business transactions.
- Ensures data accuracy, consistency, and efficiency.
- Supports high-volume processing with minimal human intervention.
1.2 Functions of TPS
- Data Collection: Capturing transaction data.
- Data Processing: Validation, sorting, and summarization.
- Data Storage: Maintaining records in databases.
- Data Output: Generating reports and receipts.
1.3 Examples of TPS
- Banking systems (ATM transactions, fund transfers).
- Retail point-of-sale (POS) systems.
- Airline reservation systems.
2. Decision Support System (DSS)
2.1 Definition and Characteristics
- A DSS aids complex decision-making through data analysis.
- Provides interactive support for managerial decisions.
- Utilizes models, simulations, and real-time data.
2.2 Components of DSS
- Database Management System (DBMS): Stores historical and real-time data.
- Model-Based Management System: Analytical and statistical models.
- User Interface: Allows users to interact and analyze data.
2.3 Types of DSS
- Data-Driven DSS: Relies on databases and warehouses.
- Model-Driven DSS: Uses mathematical and statistical models.
- Knowledge-Driven DSS: Incorporates AI and expert systems.
2.4 Examples of DSS
- Financial forecasting tools.
- Supply chain optimization models.
- Risk management systems.
3. Executive Information System (EIS)
3.1 Definition and Characteristics
- EIS is designed for top executives to support strategic decision-making.
- Presents summarized and graphical data.
- Provides real-time insights and performance monitoring.
3.2 Components of EIS
- Data Sources: Internal and external business data.
- User Interface: Dashboards, graphs, and reports.
- Reporting Tools: Summarized data for quick insights.
3.3 Functions of EIS
- Performance Monitoring: Tracks key business indicators.
- Trend Analysis: Identifies patterns and trends.
- Strategic Planning: Aids in long-term decision-making.
3.4 Examples of EIS
- Corporate dashboards for CEOs.
- Market trend analysis tools.
- Performance evaluation systems.
4. Practical Applications and Experiments
4.1 Experiment: Implementing a Simple TPS Using Excel
Objective: Simulate a transaction system for a retail business.
Steps:
- Create an Excel sheet to record sales transactions.
- Use formulas to calculate totals and track inventory.
- Generate a summary report using pivot tables.
4.2 Experiment: Analyzing Data Using a DSS Tool
Objective: Use a DSS tool (e.g., Microsoft Power BI) for decision-making.
Steps:
- Import sales data into the DSS tool.
- Create visual dashboards for trend analysis.
- Interpret insights for business decisions.
5. Assignment Questions
- Explain the role of TPS in modern business environments.
- Describe the key components of a DSS and their functions.
- How does EIS differ from DSS? Provide examples.
- Discuss the impact of TPS on customer service efficiency.
- What are the benefits of using DSS for financial planning?
6. Self-Study Questions
- What are the key advantages of using TPS in banking?
- How does a model-driven DSS help in decision-making?
- Describe the role of dashboards in an EIS.
- What challenges do businesses face in implementing DSS?
- Explain the importance of real-time data in EIS.
7. Exam Questions
Short Answer Questions:
- Define TPS and its primary function.
- What are the components of DSS?
- How does EIS support executive decision-making?
- Mention two real-world examples of DSS applications.
- What is the importance of data visualization in EIS?
Long Answer Questions:
- Compare and contrast TPS, DSS, and EIS with examples.
- Discuss the impact of DSS on business decision-making.
- Explain the architecture of an EIS and its role in corporate strategy.
- Describe an experiment to simulate a simple transaction processing system.
- How do TPS and DSS contribute to operational and strategic efficiency in organizations?
Conclusion
This unit provides a comprehensive understanding of TPS, DSS, and EIS. These systems play a crucial role in business operations, analytical decision-making, and strategic planning for executives. Understanding their functionalities helps managers make informed decisions and improve organizational efficiency.
Here is the complete class for Unit 7: Transaction Processing System (TPS), Decision Support System (DSS), and Executive Information System (EIS) of IGNOU MBA MMPC-08. It includes theories, practical applications, experiments, assignments, self-study questions, and exam questions. Let me know if you need any modifications!
