Type of MIS


TPS  Transaction Processing Systems

Definition – What does Transaction Process System (TPS) mean?

A transaction process system (TPS) is an information processing system for business transactions involving the collection, modification and retrieval of all transaction data. Characteristics of a TPS include performance, reliability and consistency.

TPS is also known as transaction processing or real-time processing.

These systems are designed to handle a large volume of routine, recurring transactions. They were first introduced in the 1960s with the advent of mainframe computers. Transaction processing systems are used widely today. Banks use them to record deposits and payments into accounts. Supermarkets use them to record sales and track inventory. Most managers use these systems to deal with tasks such as payroll, customer billing and payments to suppliers.



Database Stability

The Advantage TPS maintains database stability in the event of workstation or network failure. Should a workstation or the network fail during a transaction, a transaction that is being committed will finish to completion, and an uncommitted transaction will automatically be rolled back.

If the file server crashes during a transaction, the Advantage TPS log files are used when the Advantage Database Server is reloaded to return the database to a known state.

Data Hiding (Read Committed Isolation Level)

The Advantage TPS uses the Read Committed Isolation Level to build robustness into database applications by only allowing visibility of committed data. While updates are being made within a transaction, the Advantage TPS hides those updates from other users until that data is committed. The uncommitted data is visible only to the application performing the transaction. The other applications view the data as it was before the transaction began.

If the transaction is rolled back, the uncommitted data is never seen by any users other than the one who was performing the transaction. If the transaction is committed, the updated data becomes visible to all users at one time.

Recovery from System Failures

Automatic recovery of your database to a known state after a system failure is a key feature of the Advantage TPS. System failures in this context are server failures, such as operating system read or write errors. How the Advantage TPS handles system failures depends on what phase the transaction was in when the system failure occurred.

Recovery from Server Crashes

Should a server crash due to a power outage, abend, or other critical errors while one or more applications are in the midst of a transaction, a failed transaction(s) will result. The tables and index files associated with the transaction(s) will be left in a temporarily unstable state. The Advantage TPS can recover from the failed transactions and return the tables and index files to a known state. After bringing the file server back up, reload/restart the Advantage Database Server. Loading/starting the Advantage Database Server automatically triggers failed transaction recovery. Any transactions that were in the Build Phase when the server crashed will be rolled back. Any transactions that were in the Commit Phase will continue with the commit. Any transactions that were in the Rollback Phase will continue with the rollback.





Fast performance with a rapid response time is critical. Transaction processing systems are usually measured by the number of transactions they can process in a given period of time.

Continuous availability

The system must be available during the time period when the users are entering transactions. Many organizations rely heavily on their TPS; a breakdown will disrupt operations or even stop the business.

Data integrity

The system must be able to handle hardware or software problems without corrupting data. Multiple users must be protected from attempting to change the same piece of data at the same time, for example two operators cannot sell the same seat on an airplane.

Ease of use

Often users of transaction processing systems are casual users. The system should be simple for them to understand, protect them from data-entry errors as much as possible, and allow them to easily correct their errors.

Modular growth

The system should be capable of growth at incremental costs, rather than requiring a complete replacement. It should be possible to add, replace, or update hardware and software components without shutting down the system.



Operations Information Systems

These systems were introduced after transaction processing systems. An operations information system gathers comprehensive data, organizes it and summarizes it in a form that is useful for managers.

Most of these systems access data from a transaction processing system and organize it into a form usable by managers. Managers use operations information systems to obtain sales, inventory, accounting and other performance-related information.



Decision Support System refers to a class of systems which support in the process of decision making and does not always give a decision it self.

Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decision-making activities. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions DSS is an application of Hebert Simon model, as discussed, the model has three

phases :

i) Intelligence

ii) Design

iii) Choice

The DSS basically helps in the information system in the intelligence phase where the objective is to identify the problem and then go to the design phase for solution. The choice of selection criteria varies from problem to problem. It is therefore, required to go through these phases again and again till satisfactory solution is found.

In the following three phase cycle, you may use inquiry, analysis, and models and accounting system to come to rational solution. These systems are helpful where the decision maker calls for complex manipulation of data and use of several methods to reach an acceptable solution using different analysis approach.

The decision support system helps in making a decision and also in performance analysis. DSS can be built around the rule in case of programmable decision situation. The rules are not fixed or predetermined and requires every time the user to go through the decision making cycle as indicated in Herbert Simon model


Attributes :

i) DSS should be adaptable and flexible.

ii) DSS should be interactive and provide ease of use.

iii) Effectiveness balanced with efficiency (benefit must exceed cost).

iv) Complete control by decision-makers.

v) Ease of development by (modification to suit needs and changing environment) end users.

vi) Support modeling and analysis.

vii) Data access.

viii) Standalone, integration and Web-based


DSS Characteristics :

i) Support for decision makers in semi structured and unstructured problems.

ii) Support managers at all levels.

iii) Support individuals and groups.

iv) Support for interdependent or sequential decisions.

v) Support intelligence, design, choice, and implementation.

vi) Support variety of decision processes and styles




Expert Systems and Artificial Intelligence

These systems use human knowledge captured in a computer to solve problems that ordinarily need human expertise. Mimicking human expertise and intelligence requires that the computer

(1) recognize, formulate and solve a problem;

(2) explain solutions and

(3) learn from experience.

These systems explain the logic of their advice to the user; hence, in addition to solving problems they can also serve as a teacher. They use flexible thinking processes and can accommodate new knowledge.



A potential problem with relying on electronic communication and processing of information is the loss of the vital human element. Sometimes because of the complexity of information, an MIS report cannot effectively summarize it.

Very rich information is needed to coordinate and run an enterprise and certain classes of information cannot be quantified. For example, it might be wrong to evaluate an employee’s performance solely based on numbers generated by an MIS.

Numbers can indicate a performance problem but a face-to-face meeting will be necessary to discuss the nature of the problem.







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