1. Define TPS & DSS, and explain how an organisation can use these systems to make decisions and gain competitive advantages
A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise. A transaction is any event that passes the ACID test in which data is generated or modified before storage in an information system.
Transaction processing systems offer enterprises the means to rapidly process transactions to ensure the smooth flow of data and the progression of processes throughout the enterprise. Typically, a TPS will exhibit the following characteristics:
Rapid Processing: The rapid processing of transactions is vital to the success of any enterprise in the face of advancing technology and customer demand for immediate action. TPS systems are designed to process transactions instantly to ensure that customer data is available to the processes that require it.
Reliability: TPS systems must be designed to ensure that not only do transactions never slip past the net, but that the systems themselves remain operational permanently. TPS systems are therefore designed to incorporate comprehensive safeguards and disaster recovery systems which assist in competitive advantage.
Standardisation: Transactions must be processed in the same way each time to maximise efficiency. To ensure this, TPS interfaces are designed to acquire identical data for each transaction, regardless of the customer.
Since TPS systems can be such a powerful business tool, access must be restricted to only those employees who require their use. Restricted access to the system ensures that employees who lack the skills and ability to control it cannot influence the transaction process.
Decison Support Systems (DSS) are interactive computer-based systems and subsystems intended to help decision makers use communications technologies, data, documents, knowledge and/or models to complete decision process tasks.
A decision support system may present information graphically and may include an expert system or artificial intelligence (AI). It may be aimed at business executives or some other group of knowledge workers.Typical information that a decision support application might gather and present would be,
- Accessing all information assets, including legacy and relational data sources
- Comparative data figures;
- Projected figures based on new data or assumptions;
- Consequences of different decision alternatives, given past experience in a specific context.
DSS’s can be categorized into five types:
Communication-driven DSS: Most communications-driven DSSs are targeted at internal teams, including partners. Its purpose are to help conduct a meeting, or for users to collaborate. The most common technology used to deploy the DSS is a web or client server. Examples: chats and instant messaging softwares, online collaboration and net-meeting systems.
Data-driven DSS: Most data-driven DSSs are targeted at managers, staff and also product/service suppliers. It is used to query a database or data warehouse to seek specific answers for specific purposes. It is deployed via a main frame system, client/server link, or via the web. Examples: computer-based databases that have a query system to check (including the incorporation of data to add value to existing databases.
Document-driven DSS: Document-driven DSSs are more common, targeted at a broad base of user groups. The purpose of such a DSS is to search web pages and find documents on a specific set of keywords or search terms. The usual technology used to set up such DSSs are via the web or a client/server system.
Knowledge-driven DSS: Knowledge-driven DSSs or 'knowledgebase' are they are known, are a catch-all category covering a broad range of systems covering users within the organization seting it up, but may also include others interacting with the organization - for example, consumers of a business. It is essentially used to provide management advice or to choose products/services. The typical deployment technology used to set up such systems could be slient/server systems, the web, or software runnung on stand-alone PCs.
Model-driven DSS: Model-driven DSSs are complex systems that help analyse decisions or choose between different options. These are used by managers and staff members of a business, or people who interact with the organization, for a number of purposes depending on how the model is set up - scheduling, decision analyses etc. These DSSs can be deployed via software/hardware in stand-alone PCs, client/server systems, or the web
2. Describe the three quantitative models typically used by decision support systems.
The three quantitative models used by DSSs include:
Sensitivity analysis - the study of the impact that changes in one (or more) parts of the model have on other parts of the model. For example, change in the expenses again and again or increase/decrease the tax rate.
What-if analysis - checks the impact of a change in an assumption on the proposed solution.
Goal-seeking analysis - finds the inputs necessary to achieve a goal.
3. Describe a business process and its importance to an organisation.
A business process is a standard set of activities that accomplish a specific task, such as processing a customer order or enrolling a student.
There are 3 types of business process which are: Behavioural, Organisational and Informational.
Behavoural process is when activities are performed with sequencing, feedback looks, iteration, decision making, triggering conditions.
The more efficient and effective the business process is, the more profits the business will make. Their will be lower costs for the business as things would run smoother.
In order for a business to make money and to remain effective over time, leadership must continually plan and oversee the organization from the top-down. If businesses have a clear understanding of their day-to-day operations and processes, they stand a better chance of long-term success. A crucial component in understanding, solidifying and enhancing operations is a practice known as business process improvement.
4. Compare business process improvement and business process re-engineering.
Business process improvement is defined as a systematic approach that allows companies to optimize their core processes in order to obtain the most efficient results.
Business Process Re-engineering assumes the current process is irrelevant, does not work, or is broken and must be overhauled from scratch.
Such a clean slate enables business process designers to disassociate themselves from today’s process and focus on a new process.
It is like the designers projecting themselves into the future and asking: What should the process look like? What do customers want it to look like? What do other employees want it to look like?
5. Describe the importance of business process modelling (or mapping) and business process models.
Businesses need to map out each process in order to visualise an organisation’s operation to assist in identifying problems or new opportunities.
Technology makes business process invisible. Drawing it out on a flow chart
Business Process Modelling is the activity of making detailed flowchart or process map of a work processes, it aims to;
- Show process details in a gradual and controlled manner
- Encourage consciousness and accuracy in describing the process model
- Focus attention on the process model interfaces
- Provide a powerful process analysis and consistent design vocabulary
There are two main different types of Business Process Models:
the 'as is' or baseline model (the current situation)
- and the 'to be' model (the intended new situation)
which are used to analyse, test, implement and improve the process.
The outcomes of a business process modelling project are essentially:
- value for the customer, and
- reduced costs for the company,
leading to increased profits.
Business Process Modelling is a powerful methodology when directed towards operations which can benefit from improvement, and when people involved are on-board and supportive.
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