A.
Transaction Processing Systems (TPS) are concerned with the fundamental operations a business undertakes. Examples of these operations are sales, reciepts, payroll and credit decisions. Two ways these transactions can be managed is by the Batch or Online methods. Batch processing is where data is collected and then prepared periodically such as nightly or hourly. Online processing sorts and prepares data in real time as it happens. The information from TPS is then used for all other information systems.
Decision Support Systems (DSS) use the data provided from the TPS to inform manages so as they can make better decisions. This is particularly helpful when managers are dealing with complex unstructured problems such as estimating the future cash flows from long-lived assets. The DSS summarises the information provided from a range of TPS, this assists manager by giving them a greater understanding of the business activities.
Both the TPS and DSS should be used by managers so as they can make better decisions as both systems give information on the current operations of the business. Through having a better understanding of the business managers will be in a better situation to make informed decisions, which would be more likely to yield a better result.
2. Describe the three quantitative models typically used by Decision Support Systems (DSS).
A.
SENSITIVITY ANALYSIS
Studies the effect that changes in one (or more) part of the model will have on the rest of the model. This shows how different sections of a business, will affect other sections.
WHAT-IF ANALYSIS
Checks the impact of a change in an assumption on the proposed solution. Such as what would happen if sales increased or decreased from what is predicted.
GOAL-SEEKING ANALYSIS
Shows what inputs will be needed to achieve a goal. This helps to outlay the cost a certain goal may have for a company.
3. Describe a business process and their importance to an organisation.
A.
A business process is a standardised set of activities to complete a procees within a company. A business process would be used to process a customers order. Business processes can used in variety of situations such as accounts payable, hazardous waste management and health care benefits.
Through implementing businesses process a company can become more efficient and cut costs. They will also help streamline and minimise costs of a business. For these reasosns alone it is important for businesses to have good business processes.
4. Compare business process improvement and business process re-engineering.
A.
Business process improvement is crucial for a business to stay competitive in today's ever evolving marketplace. Business process improvement attempts to comprehend and measure current processes in place and determine what improvements are necessary.
Business Process Re-Engineering (BPR) differs from business process improvement as it assumes the current process is irrelevant. This allows designer to seperate themselves from current operating methods and create something from the beginning. This method of analysis and redesign of work flow allows for a system that may be better capable of demand in the future.
5. Describe the importance of business process modelling (or mapping) and business process models.
A.
Business process modelling allows a business to map out each process that it undertakes and identify all their outputs. A business process model is necessary as technology can make the processes invisible, so the business process model makes all the processes visible. Business process modelling shows the activities as a flowchart an example of this is the To-Be and As-Is model shown here:
Both business process modellling and business process models provide process anlaysis and information necessary for managers to make informed decisions and have an understanding of operations undertaken within the business.
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