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Transaction Processing Systems

Transaction Processing Systems. The Cinderella of Systems. Cinderella. A princess, disguised in rags Cinderella processes contain hidden nobility (read “advantage”) that needs to be uncovered. Simon points out why this is important.

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Transaction Processing Systems

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  1. Transaction Processing Systems The Cinderella of Systems

  2. Cinderella • A princess, disguised in rags • Cinderella processes contain hidden nobility (read “advantage”) that needs to be uncovered. • Simon points out why this is important. • Transaction processing systems are supposed to be routine, simple systems that gather data on a business’s transactions and aren’t really “sexy” at all. • But they are really cinderellas

  3. Purchase-event Information Purchase-event Definition Parameters Purchase-event Outcome Report Goods Payment Basic Idea Manage- ment CUSTOMER PURCHASE Customer This is a design. It is based on BUSINESS requirements. Although a system may be built from the design, the ideas about the business processes come from those involved in designing the transactions, not the system.

  4. Data Available • The Customer is the Driver • The event (time, place, problems, outcomes) • The Customer • Identification • The Product or Service • Identification, condition • The Employee • Identification

  5. Information Inferred • Customer • Frequency, preferences • Product • Frequency, relation to customer characteristics • Employee • Frequency, relation to product and customer characteristics • Situation

  6. Management Decision Making • Simon said: • Intelligence, design, choice • Intelligence is “data about the current situation” • Design is “theory or idea about what makes what happen” • Choice is the result of applying the data to the theory and evaluating outcomes

  7. Information system gathers data from sources of current events Information system accesses stored models representing knowledge of what really happens Information system runs data on current situation through model and result is evaluated for decision How This Happens with IS Intelligence Design Choice

  8. The POWER of TPS • Stored transaction information represents hidden knowledge about the business, its products, customers and employees as well as other resources • Being able to access (say through a data warehouse) means that knowledge for advantage can be acquired. • Examples: Loyalty schemes • Example: Frequent Flyer schemes • Example: High Yield Customer decision making.

  9. Information system has gathered data on customer ticket purchases Stored model shows value of customer yields Model processing indicates value of particular customers on particular flights High Yield Customers Intelligence Design Choice

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