DSS n TPS

DSS & TPSDr. Satish Jangra (2009A229M)

Jyoti Goyal (2009A233M)

Neha Goyal (2009A241M)

Decision Support System (DSS)

Decision Support System is a system that provides tools to managers to assist them in solving semi-structured and structured problems.

A DSS is not intended to make decisions for managers.

A DSS supports the human decision-making process.

• Systems that replace human decision making- rather than support it are called programmed decision systems.

Example

• A writer, a selected group of journal and text resources at a local library – and a strategy for using those resources – may serve as part of a decision support system.

• Decision support systems are characterized by at least three properties:

• They support semi-structured or un-structured decision making.

• They are flexible enough to respond to the changing needs of decision makers.

• They are easy to use.

DSS Goals and Applications

• Structured decisions are those that are easily make from a given set of inputs.

• E.g; issue a reminder notice if a bill is overdue or deciding to sell a stock under a given set of market conditions, can be programmed fairly easily.

Structured Decisions

• Semi-structured and unstructured decisions are decisions for which information obtained from a computer system is only a portion of the total knowledge needed to make the decision.

Semi-structured and unstructured decisions

Steps in solving a problem with a DSS

Define and formulate problem

Frame problem into DSS model

Use Model to obtain results

Reformulate problem

CAPABILITIES OF DSSA DSS provides support for decision maker at all

management levelsIt supports all phases of decision making process-

intelligence-design and choiceIt promotes learning.It is adaptable by the user over time to deal with

changing condition

Properties of Decision Support System

• Support for semi-structured and un-structured decision making.

• Flexibility in specifying output requirements.

• Ease of use and ease of development for non-professionals.

• Fast response.

Properties of DSS (cont.)

• Middle or top management focus.• Use of models• Focus on managerial effectiveness, rather

than efficiency.

COMPONENTS OF DSS

DATABASE: Current & Historical Data from Many Sources, as Required

MODEL BASE: Collection of Mathematical & Analytical Building Blocks

USER INTERFACE ;Communication between a DSS and user

USER: The person faced with the problem

Components of a DSS

DSSSoftware

ModelBase

GraphicalInterface

UserDecisionMaker

Data BaseModels-Financial-Statistical analysis-Graphical-Project managment

A database is an organized collection of data for one or more multiple uses .

Databases consist of software-based "containers" that are structured to collect and store information so users can retrieve, add, update or remove such information in an automatic fashion

A graphical user interface (GUI) (sometimes pronounced gooey is a type of user interface item that allows people to interact with programs in more one ways

Types of DSSStatus inquiry systemData analysis systemInformation analysis systemAccounting systemModel based system

Example of DSS typesDecision Type of system

required• Selection of vendor•Procurement•Pricing•Selection of vendor based on price , quality, performance•Selection of capital Asset

•Inventory rationalization

Inquiry SystemInquiry systemData analysisInformation analysis system

Return on investment analysis systemValuation of inventory and accounting system

Putting A DSS at work

• The tasks commonly performed by decision support systems are;• Information retrieval• Data reconfiguration• Calculator activities• Analysis

Information Retrieval

• Information retrieval in a DSS environment refers to the act of extracting information from a database, or from data files for the purpose of making decision.

Selection and Projection• Two common types of retrieval are;

- Selection

- Projection

Selection: Selection involves separating out records that have specific characteristics.

e.g. identifying all males over age 64 in employee file or database.

Projection: obtaining only certain fields of data.

e.g. extracting all names and phone numbers from an employee file or database.

Data reconfigurationState City NamePunjab Multan M. RashidPunjab Lahore Irfan KhalidPunjab jranwla Asad BashirSindh Karachi Ahmad RzaBlchstan Kohlu Zahid Ali

Name City State Zip

M. Rashid Multan Punjab 52000Irfan Khalid Lahore Punjab 54000Asad Bashir Jranwla Punjab 50000Ahmad Raza Karachi Sindh 42000Zahid Ali Kohlu Blchstan 65000

Name City State

Ahmad Raza Karachi SindhAsad Bashir Jranwla PunjabIrfan Khalid Lahore PunjabM. Rashid Multan PunjabZahid Ali Kohlu Blchstan

Name City State

M. Rashid Multan PunjabIrfan Khalid Lahore PunjabAsad Bashir Jranwla PunjabAhmad Raza Karachi SindhZahid Ali Kohlu Blchstan

(b) Exchanging fields (columns)

(c) Joining (with zip code data)

(d) Presentation graphics(pie chart by state)

(a) Sorting by name

Original data:

Punjab(60%)

Sindh(20%)

Blchstan(20%)

Calculator Activities

• Functions

- Arithmetic and Statistical Functions i.e. SUM, AVG, LOG etc.

- Financial Functions PV, FV, NPV, PMT etc.

- Conditional Functions IF, CHOOSE etc.

- Data Functions TODAY, DATE etc.

Analysis

• Four widely used types of DSS analysis tools:• Statistical Tools• Optimizing Tools• What-if Analysis• Intelligence routines.

BEHAVIOURAL MODEL

These models are useful in understanding the behavior amongst the business variables.

Examples : regression analysisTime series analysisMarket research methodsRatio analysis for financial assessment

Management science modelsThese models are developed on the principles

of business management, accounting, econometrics.

Examples :Budgeting modelsBreak-even analysis modelReturn on investment analysisProcedural modelsPERT/CPM

Operational research models• These models are mathematical models .

These represent the real life problems situation in terms of the variables, constraints, parameters expressed in algebraic equations.

• Examples:Mathematical programming techniquesLinear programming modelInventory control model

• The DSS development process in many instances, after decision-making needs are identified and an initial prototype developed, several evaluation/ modification iterations may be needed before the DSS is ready for use.

• DSS development tools:

=> Spreadsheets

=> User Interface

=> Command Interfaces

=> Templates

=> Physical Modification

DSS Development

Figure: DSS Development Process

Determination of decision-making requirements

Developmetn of Initial DSS prototype

Evaluation of Prototype/DSS

Yes

Usable DSS

Completion and documentation of DSS

Modification of Prototype/DSS

Are Decision-making

requirements satisfied?

NO

Evaluation/ modification loop




Yes

Usable DSS



Are Decision-making


NO




Yes

Usable DSS



Are Decision-making


NO

Evaluation/ modification loop

• A contract negotiation DSS

• An Oil Executive’s DSS

• An Environmental DSS

DSS Examples

DSS Examples• DSS For Education Decisions

• School Match (elementary/secondary school search, school match)

• Official MBA Guide (screen and rank MBA programs)

• DSS for Financial Decisions• Financenter (customizable calculators)• Prudential Securities ( advice, strategies,

calculators)

DSS Examples• DSS for Health Decisions

• Almond Board (personalized fitness & nutrition advice)

• AFAA (health evaluation, tips, news, answers)• Health Grades (alternatives, evaluators, tips)

• DSS for Information Technology Decisions• Avantsoft (ROI calculation for technology

investment)• Developer.com (advice, tips, tutorials, news, online

library)

http://www.aerobics.com/

DSS Examples• DSS for Insurance Decisions

• Insure.com (alternatives, ratings, guidance)• Quotesmith (insurance quotes)• MarketTrak (neural net and genetic algorithm

forecasts, performance, comparison)• NEOS (online demo of portfolio optimizer)

• DSS for Natural Resource Decisions• Ag Canada (online DSS for manure management)• IMP (online DSS for pest management)

http://www.mcs.anl.gov/home/otc/Guide/CaseStudies/port/demo.html

DSS Examples• DSS for Purchasing Decisions

• CompareNet (comparisons)• mySimon (shopping agent)• Consumers Digest (product reviews, shopping tips)• CARPOINT

• DSS for Real Estate Decisions• CyberHomes (search for home alternatives)• Countrywide (financing calculators, mortgage

alternatives)• GetSmart (mortgage finder)

•

DSS Examples• Geographic DSS

• Leeds (online demo for radioactive waste disposal)• SUNY-Buffalo (tutorial, course, materials)

Group Decision Support Systems

Group of managers could also use a DSS as well on a common task or issue

To facilitate this a GDSS (Group Decision Support System) application is provided to multiple users on various computer and on multiple networks

Is the requirement in the organization that believe in team-based working environment

What is a Transaction Processing What is a Transaction Processing System?System? Transaction Processing Systems are computerised

systems that perform and record the daily routine transactions necessary to conduct the business.

A Transaction Processing System consists of TP monitor, databases, and transactions

Transaction execution is controlled by a TP monitor. It Creates the abstraction of a transaction, analogous to the way an operating system creates the abstraction of a process

It’s an information system designed to process routine business transactions.

Seeks time- and cost-efficiency by automating repetitive operations in large volumes.

What is a Transaction Processing What is a Transaction Processing System?System?• Interfaces with an organization’s other information

systems, such as IRS, DSS, EIS.

• Centers around accounting and finance transactions.

• Example: Airline Reservation Systems, order entry/processing systems, bank’s account processing systems

Transaction Processing SystemTransaction Processing System

TP Monitor

DBMS databasetran

sact

ions

DBMS database

TPS, MIS/DSS, and Special-TPS, MIS/DSS, and Special-Purpose Information SystemsPurpose Information Systems

Transaction Processing ActivitiesTransaction Processing Activities Data collectionData collection: : Capturing data necessary for the

transaction Data editingData editing: : Check validity and completeness

Ex: 400 hours/week instead of 40 hours/week Data correctionData correction: : Correct the wrong data Data manipulationData manipulation: : Calculate, summarize Data storageData storage: : Update transactions Document production and reportsDocument production and reports: : Create end

results (paychecks)

Transaction Processing ActivitiesTransaction Processing Activities

Transaction Processing Cycle

Transaction Document

CorrectionInvalid Input

Transaction and Control Log

Process Transaction

Update Master File

Control Log

Master File

Input Validation

Transaction Input

Objectives of TPSObjectives of TPS Process data generated by and about transactionsProcess data generated by and about transactions Maintain a high degree of accuracyMaintain a high degree of accuracy Ensure data and information integrity and accuracyEnsure data and information integrity and accuracy Produce timely documents and reportsProduce timely documents and reports Increase labour efficiencyIncrease labour efficiency Help provide increased and enhanced serviceHelp provide increased and enhanced service Help build and maintain customer loyaltyHelp build and maintain customer loyalty Achieve competitive advantageAchieve competitive advantage

ACID testACID test AtomicityAtomicity: all steps involved in transaction completed : all steps involved in transaction completed

successfully as a groupsuccessfully as a group

ConsistencyConsistency: transaction successfully transforms the : transaction successfully transforms the system and database from one valid state to anothersystem and database from one valid state to another

IsolationIsolation: transaction is processed concurrently with : transaction is processed concurrently with other transactions. As if only transaction executing the other transactions. As if only transaction executing the systemsystem

DurabilityDurability: all changes transaction makes to database : all changes transaction makes to database become permanentbecome permanent

The Major Characteristics of TPSThe Major Characteristics of TPS

TPS handles data which shows the results of various TPS handles data which shows the results of various activities on historical basis ie, activities which have activities on historical basis ie, activities which have already happened.already happened.

It is relevant to all the four functional areas ie, It is relevant to all the four functional areas ie, production, marketing, finance and human resources production, marketing, finance and human resources because each area has some kind of transaction.because each area has some kind of transaction.

TPS helps to assess the organizational performance.TPS helps to assess the organizational performance.

Large amounts of data are processed.Large amounts of data are processed.

The sources of data are mostly internal, and the output The sources of data are mostly internal, and the output is intended mainly for an internal audience.is intended mainly for an internal audience.

The TPS processes information on a regular basis: daily, The TPS processes information on a regular basis: daily, weekly, monthly, etc.weekly, monthly, etc.

Accounting TPSCustomer

Accountsreceivable

Assetmanagement

Accountspayable

Payroll

BudgetCustomer

Generalledger

Paycheques

Labour costs

Expense transactions

Asset depreciation

Amounts owed by companyAmounts paid by company

Cost of assetsPayments

Amounts owed by customersAmounts paid by customers

Components Of TPS• There are four components of a Transaction

Processing System• Input- These are source documents such as

customer orders, purchase orders etc. They help in,1. Capturing data.2. Indicates what data is required for recording and

what actions need to be taken.• Processing- It involves the use of journals and

registers for chronological recording of data. Journals are used for financial accounting transactions and registers for other type of data.

Components Of TPS• Storage- The computer stores various records in

files.files are of two types, transaction file and master file.

• Output- The outputs generated are in the form of documents such as trial balance, profit and loss account, balance sheet etc.

Components Of TPS

Data InputData Input Data ProcessingData Processing Output GenerationOutput Generation

Data StorageData Storage

Transaction Processing MethodsTransaction Processing Methods

On-line transaction processing (OLTP) - method of computerized processing in which each transaction is processed immediately and the affected records are updated

On-line SchematicOn-line Schematic

Output

Terminal

Terminal

Terminal

Terminal

Terminal

Terminal

Immediateprocessingof eachtransaction

Transaction Processing MethodsTransaction Processing Methods Batch processing – method of computerized processing

in which business transactions are accumulated over a period of time and prepared for processing as a single unit.

Batch SchematicBatch Schematic

Data entryof accumulated

transactions

Input(batched)

Output

Transaction Processing MethodsTransaction Processing Methods

On-line analytic processing (OLAP) – method of computerized processing in which data is entered on-line and validated but, their processing is done on periodic batch basis. It is basically used for making management decisions by analysis of the data.

Control for TPS• Control in the system is required to ensure that the

system is achieving the objectives.• Audit Trails- It’s the chronology of activities that

can be traced from beginning to the end or vice versa. This is important as it tells us what went wrong in the transaction.

• Ensuring Processing of All Transactions- Control in TPS also ensures that all transactions have been processed. Problems such as interruptions in computer operation, carelessness of personnel etc results into non processing of some transactions.

TPS ApplicationsTPS Applications Order ProcessingOrder Processing PurchasingPurchasing Accounts Receivables & Accounts PayablesAccounts Receivables & Accounts Payables Receiving & ShippingReceiving & Shipping Inventory on HandInventory on Hand PayrollPayroll General LedgersGeneral Ledgers

Refrences• James A. O’Brien (Introduction to Information

System.

• Laudon and Laudon (Management Information System)

• J. O'Brien and G. Marakas ( Enterprise Information Systems)

• http//:wikipedia.com

DSS n TPS

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