July 2014 knec paper

Transaction Processing System Features

There are several features involved in a good transaction processing system. A few of these critical
features are described below.

 Performance

The concept behind the use of TPS is to efficiently generate timely results for transactions.
Effectiveness is based on the number of transactions they can process at a particular time.

 Continuous availability

The transaction processing system should be a very stable and reliable system that must not
crash easily. Disruption of TPS in an organization can lead to work disturbance and financial loss.

 Data integrity

The TPS must maintain the same method for all transactions processed, the system must be
designed to effectively protect data and overcome any hardware/ software issues.

 Ease of use

The TPS should be user-friendly in order to encourage the use and also decrease errors from
inputting data. It should be structured in such a way that it makes it easy to understand as well
as guarding users against making errors during data-entry.

 Modular growth

The TPS hardware and software components should be able to be upgraded individually without
requiring a complete overhaul.

 Controlled processing

Only authorized personnel, staff members, or employees should be able to access the system at
a time.

Distinguished between Technical and Behavioral Approach in MIS

Management
 The behavioral approach looks at the psychological, sociological and economic aspects of the system.
This approach is fields of an information system that deals with behavior issues arising from the
developed system and longtime maintenance of the information system also deals with issues that
cannot be explode using formulas. This approach deals with issues of:

 Design,
 Implementation,
 Business integration,
 Management.

Behavioral Approach based on the impact of the behavior and also on the response of the people in the
organization.

The technical approach to information systems emphasizes mathematically based models to study
information systems, as well as the physical technology and formal capabilities of these systems.
Technical approach this approach emphasis on three things –

 mathematically based models to study an information system,

 looks at physical technology and formal capability of the system,
 the emphasis at identifying solutions that can be represented by formulas.

Technical Approach based on the mathematical and the normative models. Such an approach mainly
finds much-needed contributions from disciplines like computer science, management science,
operations research etc.

The Positive Impact of Information Systems

 Communication: With a comprehensive information system, you should be able to

communicate with others through various formats, from chat to video chats and even hold
conference calls. Information system makes this all possible and thanks to the same, we can
now make long distance calls at a pittance of what we used to pay before. It should also be
pointed out that information system is highly adaptable, making it possible for us to
 communicate over long distances. For example, even though Voyager is now in interstellar
space at a distance of 11 billion miles and counting, its developers are able to send crucial
information to it, thanks to the robust information system on board.
 Development: With robust information systems, many governments have started to use the
same to help educate their local population so as to provide them with basic skills and to make
them more aware of the various opportunities’ out there. Most of the government based
programs and initiatives are run with the help of robust information system which makes it
possible for the government issued benefits to reach the concerned person on time. One could
almost say that development today would not be possible without the infrastructure or a robust
information system.
 Globalization and cultural gap: With information systems being increasingly used it has resulted
in globalization and dispersion of ideas, new concepts. Moreover, it enables people to
communicate with each other despite the cultural gap and even linguistic barriers.
 24*7: Thanks to information systems, companies can now be open round the clock. Earlier on, a
company could be open only during the working hours but thanks to internet and information
systems, companies can now remain open all through the night. All they have to do is set up an
online shop, set up a shopping cart and that’s it.
Negatives of Information Systems

 Lack of job security: With information systems in place, companies vie with each other to retain
their edge and as a result, have started automating several business processes. This has led to
several people being let go which in turn has made it apparent to one and all that job security is
more of a thing of the past. With a robust information system in place, companies can now
streamline their business processes, store all data in the form of digital files, and even process
them instantaneously. Essentially tasks which were earlier on carried out by human employees
are now being executed seamlessly by computers.
 Cost: Companies may have to spend a bit to integrate the information system with the rest of
their existing architecture. And they would often have to either purchase or lease new
hardware, software for the same purpose. And they would have to train their employees to
learn to operate these systems efficiently. All of this can translate to a hefty initial outlay; but
that being said, the advantages of having a robust information system in place outweighs the
costs that a company may incur during the implementation phase.
 Security issues: Given the tenfold increase in online attacks over the last five years, the various
security issues that one may face as a result of one’s information system cannot be overstated
enough. Once you have integrated the information system with the rest of your architecture,
you need to take certain measures such as implementing a strong firewall, enabling encryption,
so as to prevent any online security threats. Without a strong firewall in place, you are liable to
get hacked and all your vendor information, bank details, and personal information – everything
would be at risk.

Pros of Automation

1. Increased productivity: Through automation, we can significantly enhance productivity by eliminating

the need for manual labor and speeding up processes. Machines and robots are designed to perform
tasks faster and more efficiently than humans. It can result in increased output and shorter production
cycles.

2. Improved accuracy and quality: Automated systems are programmed to perform tasks with precision
and consistency. This can lead to improved accuracy and quality of products or services. They can
eliminate human errors and deviations, resulting in higher levels of customer satisfaction and reduced
rework or defects.

3. Enhanced efficiency and cost savings: Automation can optimize workflows, eliminate bottlenecks, and
reduce wastage of time and resources. By streamlining processes and reducing human intervention,
businesses can achieve cost savings through improved efficiency, reduced labor costs, and minimized
operational expenses.

4. Increased safety: Automation can be particularly beneficial in hazardous work environments. By

replacing humans with machines in tasks that pose risks to human safety, automation can minimize the
occurrence of accidents, injuries, and occupational hazards.

5. Scalability and flexibility: Automated systems can be easily scaled up or down to accommodate
changes in demand. They offer the flexibility to adjust production levels, allocate resources, and respond
to market fluctuations quickly. This adaptability can help businesses stay competitive and meet
customer demands effectively.

Cons of Automation

1. Job displacement and unemployment: Implementing automation to perform tasks and processes
results in the potential loss of jobs for human beings. When industries and offices start using machines
and robots to enhance their productivity, the unemployment rate will increase, particularly for low-
skilled or repetitive roles. This can lead to economic and social challenges, including income inequality
and unemployment rates.

2. Initial implementation costs: While automation can lead to long-term cost savings, the initial
investment required to implement automated systems can be significant. It involves expenses such as
purchasing equipment, software, training employees, and restructuring processes. Due to these upfront
costs, small businesses or industries with limited resources may find it challenging to adopt automation.

3. Technical challenges and limitations: Automation relies heavily on technology and complex systems.
Technical issues such as software glitches, hardware failures, or cybersecurity vulnerabilities can disrupt
operations and cause downtime. Moreover, certain tasks may be challenging to automate due to their
complexity or the need for human judgment and creativity.

4. Reduced human interaction and customer experience: Automation can result in reduced human
interaction, which may negatively impact customer experience in certain industries. Customers may
prefer personalized services or assistance from human representatives, and automated systems may not
always be able to provide the same level of empathy, intuition, and problem-solving abilities.

5. Dependency and loss of skills: Over reliance on automation can lead to a loss of human skills and
expertise. If employees become too dependent on automated systems, they may lose their proficiency
in certain tasks, making it difficult to operate without automation. This can create a skills gap and hinder
adaptability in the workforce.

Advantages of Automation Disadvantages of Automation

Increased productivity Job displacement and unemployment

Improved accuracy and quality Initial implementation costs

Enhanced efficiency and cost savings Technical challenges and limitations

Increased safety Reduced human interaction and customer experience

Scalability and flexibility Dependency and loss of skills

Advantages and Disadvantages of Automation

Examples of Automation

1. Manufacturing: Robotic arms and automated assembly lines are used to streamline production
processes, increasing efficiency and reducing errors.

2. Logistics: Automated warehouses and robotic systems are employed for tasks such as sorting, picking,
and packing, improving speed and accuracy in distribution centers.

3. Healthcare: Automation is used in medical laboratories for tasks like sample testing, medication
dispensing, and surgical procedures, ensuring precision and reducing human error.
 4. Customer service: Chatbots and automated phone systems are utilized for handling customer
inquiries and providing basic assistance,
improving response time and availability.

1. Office Automation (OA):

o Definition: OA refers to the collective hardware, software, and processes that enable the automation of
information processing and communication tasks within an organization.
o Purpose: OA streamlines routine office tasks, enhances efficiency, and reduces manual effort. It focuses
on automating repetitive administrative processes.
o Examples:
 Word Processing: Tools like Microsoft Word or Google Docs automate document creation, editing, and
formatting.
 Email Systems: Email clients automate communication, file sharing, and collaboration.
 Spreadsheets: Applications like Microsoft Excel automate data entry, calculations, and reporting.
 Workflow Management: OA systems automate approval workflows, document routing, and task
assignments.
2. Executive Information Systems (EIS):
o Definition: EIS is customized for individual executives and supports strategic decision-making at the
highest organizational level.
o Purpose: EIS provides specific information to executives, enabling them to formulate high-level strategic
decisions that impact the organization’s direction.
o Characteristics:
 Unstructured Decision Support: EIS assists with unstructured decisions, often involving qualitative
factors and long-term implications.
 Executive Level: EIS caters to top-level executives (CEOs, CFOs, etc.) who need a holistic view of the
organization.
 Strategic Focus: It emphasizes long-term planning, competitive analysis, and identifying critical issues.
 Customization: EIS is tailored to the preferences and information needs of each executive.
o Examples:
 Dashboard Interfaces: EIS provides visual dashboards summarizing key performance indicators (KPIs)
across departments.
 Trend Analysis: EIS tools analyze historical data to identify trends and patterns.
 Scenario Planning: Executives use EIS for “what-if” scenarios and strategic planning.
 Competitor Intelligence: EIS gathers information about competitors, market trends, and industry shifts.

5. Banking: Automated teller machines (ATMs) enable self-service transactions, reducing the need for
human tellers and providing 24/7 access to banking services.

Read more about some of the top automation tools that are required for software development.

Future of Automation
The future of automation is expected to bring further advancements and impact various industries.
Some key trends and possibilities include

1. Continued job transformation: Automation will likely continue to reshape job roles, leading to the
evolution of skills required in the workforce. Adaptation and upskilling will be crucial to remain
employable in an automated world.

2. Collaborative robotics: The integration of humans and robots working side by side, known as cobots,
will become more prevalent. This collaboration can enhance productivity, efficiency, and safety,
particularly in tasks that require both human judgment and machine precision.

3. Artificial intelligence and machine learning: Automation systems leverage AI and machine learning
algorithms to improve decision-making capabilities. Additionally, it supports learning from data and
adapts to changing circumstances. This will enable more sophisticated and autonomous automation
processes.

4. Expansion into new industries: Automation will extend beyond traditional sectors and begin to impact
areas such as agriculture, retail, hospitality, and education. Undoubtedly, the automation of tasks in
various industries will boost efficiency, minimize costs and enhance customer experiences.

5. Ethical considerations: As automation becomes more pervasive, ethical concerns regarding job
displacement, privacy, and the responsible use of AI will need to be addressed. Developing frameworks
and regulations to ensure ethical and equitable automation practices will be essential.

Advantages of Global Positioning Systems

 Determines the atmosphere’s water content, thereby improving the accuracy of the water
forecast.
 In traditional methods of survey require a design to make sure that nothing gets in between the
measurement line of vision. With the GPS equipment, you do not require an elaborate design of
placement and you can select the optimum measurement points despite the terrain of the land.
 Servicing and marinating vehicles requires a lot of time and money. GPS systems help in saving
the end costs when it comes to this.
 It helps improve mapping as well as tracking skills and also acts as security against vehicular
thefts and for locating someone who got lost.