BMT5114

IT FOR MANAGERS
DIGITAL ASSIGNMENT NO-2

SUBMITTED BY-
NAVEEN.R
19MBA0079
Q Describe the features you would like to include in the information system

Data
When data is entered in to an information system, it has to be entered in a way
that can be managed and processed. When the data is processed it turns data into
information which is then output to end users of the system. The data is generated
from various sources such as different departments of a business as well as
external sources. The data must be accurate or else the information output can be
inaccurate or misleading.
People
Getting data and processing it involves the use of people in order to create
information for specific uses or purposes that are relevant to a business. Staff
training and skills in relation to information systems are important so that a
business can get the most out of its information system.
Hardware
The hardware that IT systems use has to be capable of running the software
required by the business and also be capable of handling a large amount of data
and information processing. The hardware should be kept up to date which
enables the fast capture, storage and use of data.
Software
The software that is used by businesses and the staff has to have the necessary
features and functionality so that it can produce and use the information created
by a business. The software should also have the features necessary for staff to
carry out their work efficiently, for example: to analyse and process data and
reports.
Telecommunications
The information that is produced by various departments in a business needs to
be shared around a business as it will be used for different purposes. For doing
this the telecommunications in a business needs to be effective so that the
information shared and distributed goes to the correct destination after being
processed.

b) Identify the various transactions (and the data elements) that should be
captured by the system

A transaction is an elementary activity conducted during business

operations. Transaction processing systems (TPS) process the company's
business transactions and thus support the operations of an enterprise. A TPS
records a non-inquiry transaction itself, as well as all of its effects, in the database
and produces documents relating to the transaction.

TPS are necessary to conduct business in almost any organization today. TPSs
bring data into the organizational databases, these systems are also a foundation
on which management oriented information systems rest.

System Charts

Systems charts are well-established tools which are used to describe TPSs. These
charts show the sources of input into the system, major processing steps, data
storage, and systems outputs.

Transaction Processing Modes

Transaction processing may be accomplished in one of two modes:

1. On-line mode

2. Batch mode

Characteristics of on-line transaction processing:

1. Each transaction is completely processed immediately upon entry.

2. OLAP is the most common mode of used today

3. More costly than batch processing

4. Database is always up to date

5. Require the use of fast secondary storage such as magnetic disks

Characteristics of batch transaction processing:

1. Relies on accumulating transaction data over a period of time and then

processing the entire batch at once.

2. Batch processing is usually cyclic: daily, weekly, or monthly run cycle is

established depending on the nature of the transactions

3. Cheaper than on-line processing

4. Easier to control than on-line processing

5. Database is constantly out of date

6. Batch processing is now being captured using disk files

Transaction Processing Subsystems in a Firm

Overall transaction processing, also known as data processing, reflects the

principal business activities of a firm. The principal transaction processing
subsystems in a firm are those supporting:

1. Sales

2. Production
3. Inventory

4. Purchasing

5. Shipping

6. Receiving

7. Accounts payable

8. Billing

9. Accounts receivable

10. Payroll

11. General ledger

Transaction Processing Activities

The processing of individual transactions, of course, depends to a degree on their

nature. The general elements of transaction processing include:

1. Data capture and validation

2. Transaction - dependent processing steps

3. Database maintenance

Date Capture

Direct data entry is commonly employed through source data automation.

Increasingly, transaction processing systems rely on electronic data interchange
(EDI). By replacing paper documents with formatted transaction data sent over
telecommunications networks, these systems provide for computer-to-computer
communication without repeated data entry. Although used internally by some
firms, EDI primarily serves the needs of intercompany communication.

Data Validation

Typical validation tests include checking for missing data items, valid codes, and
valid values. More extensive validation may entail authorization of the
transaction based on the customer=s record and available inventory.

Processing Steps Dependent on the Transaction and on Processing Mode

Depending on the nature of the transaction and on whether the system operates in
on-line or batch mode, the following processing steps may be performed:

1. Classification The system classifies incoming transactions to select further

processing steps.

2. Sorting Transaction records are arranged in order of the value of the data
item(s) that uniquely identifies each of them.

3. Data Retrieval The purpose of an inquiry transaction is retrieval of data from

the database. Other transactions may involve data retrieval as well.

4. Calculation The calculations required depend on the nature of the transaction.

5. Summarization Usually performed to obtain simple reports offered by TPS,

this step computes summaries across all or some of the transactions.

Database Maintenance

After transactions other than inquiries, system files or databases must be updated.
The data accumulated by TPSs thus serve as a source of detail for management
oriented components of information systems.
Outputs Provided by Transaction Processing Systems

The outputs provided by TPSs may be classified as:

1. Transaction documents

2. Query responses

3. Reports

Transaction Documents

Many TPSs produce transaction documents, such as invoices, purchase orders, or

payroll checks. These transaction documents produced by TPS may be divided
into two classes: action documents and information documents.

1. Action documents direct that an action take place. Turnaround documents

initiate action and are returned after its completion to the requesting agency. They
therefore also serve as input documents for another transaction.

2. Information documents confirm that a transaction has taken place or inform

about one or several transactions. Transaction documents require manual
handling and, in some cases, distribution of multiple copies. The process is costly
and may lead to inconsistencies if one of the copies fails to reach its destination.

Q List the reports/queries that the system would generate and describe the
information content of each report/query. Justify the usefulness of these
reports/queries.

TPS offer certain querying ad simple reporting capabilities, albeit much less
elaborate than those of management reporting systems. Most queries produce a
screenful of information. However, reports are also often produced as a result of
inquiries.
Unlike management reporting systems, TPSs typically provide a limited range of
preplanned reports. The content and format of such reports are programmed into
the TPS software and the reports are produced on schedule. The TPS reports are
often quite long.

The following report types are produced by TPS:

1. Transaction Logs - are listings of all transactions processed during a system

run and include purchase order manifests or sales registers.

2. Error (Edit) Reports - error reports list transactions found to be in error during
the processing. They identify the error and sometimes also list the corresponding
master file or database records.

3. Detail Reports - detail reports are extracts from the database that lists records
satisfying particular criteria.

4. Summary Reports - typical summary reports produced by TPSs include

financial statements.

MIS Reporting System

The fodder used by an MIS reporting system to produce reports is raw data from
the processing systems in the office, such as the software on the computers, the
transactional information coming from the transaction processing systems, and
even the mobile applications running on employee phones for business purposes.

The output of the analysis of this data is in the form of one of many types of
reports. These reports will aggregate the data and present them in a coherent
format that the management in the company can then use to aid them in
the decision-making process. The reports could be no more than summaries of
such things as sales, or they could be more detailed.
The Summary Reports
These reports take data from different categories and aggregate it. It could be
from different products, or different business units or geographical regions or
accounting periods.

The information that is being aggregated in summary reports is usually

presented in such a way that management can make sense of i*t*. If it is an
inventory summary, then it will consider vital information like the value of
inventory in stock as well as the value of new purchases. If it is a sales summary,
then it will contain information about sales revenue as well as divisions for that
revenue in terms of geographical location, product category, and so on. No matter
what kind of management information system you are using, even if it is as simple
as a spreadsheet, it will allow you to specify the format in which you want the
report.

The Trend Reports

Trend reports simply show trends, which allow you to compare how different
things perform and they also enable you to compare present performance with
past performance. A trend report of sales, for example, shows the performance of
a given product category or business unit over the course of, say, a year. That
year will then be broken down into months, weeks, and so on so that you can see
how well it did over different periods. You can also see how well a product
category or business unit is doing from one year to the next.

When management uses trend reports, they can pinpoint problem areas and
figure out how to correct them. A business unit that’s not doing well may need
for the leadership in it to be changed, so it can improve. A product category that
is suffering may need to either be improved or scrapped altogether.

The Exception Reports

An exception is anything outside of the norm. An exception report will collect
every single instance of these abnormal occurrences and then put them in one
place where management has easy access to it. An exception report
allows management to see what’s not going right and then prioritize
what needs to be solved immediately. If, for example, inventory levels are well
below the norm, then management can order more supplies. If a business unit is
making much less revenue than the norm, then management can take action.
On-Demand Reports
On-demand reports are produced on demand. The way they look and what is
contained in them depend on both the r*equirements of
the* manager that needs them and on the prevailing circumstances.
The management information format can either be a standard format or a custom
one as required by the requester.
For example, the business owner might want a sales report for a specific product
category to see how well it is selling in a particular location during
a given holiday season, or at a specific price. A manager may want to know how
a change in the price of a product or service will affect the profitability of that
product or service.

Q Draw an overview diagram of the Information System for maintaining the

alumni details of VIT Business School.