ITM 100 Lecture Notes - Lecture 2: Online Transaction Processing, Transaction Processing System, Executive Information System
DepartmentInformation Technology Management
Course CodeITM 100
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ITM 100 Chapter 2
Strategic level - managers develop overall business strategies and goals
- no procedures/rules to guide decision makers. Infrequent, extremely important to long
Ex. Decision to enter new market/industry
- employees evaluate operations to hone the firm's ability to identify, adapt, and leverage
- few established processes help evaluate solutions, but not enough for a definite decision.
Ex. Decisions about producing a new product, changing employee benefits
- employees develop, control, and maintain core business activities that run daily operations.
Structured Decisions - established processes offer potential solutions. Frequent and repetitive. Ex. Reordering,
creating weekly production schedules
Transactional Data & Analytical Information
Transactional Data - all raw facts contained within a single business process. Purpose: to support daily operations.
Ex. Stock price, airline reservation number, bank account balance
Analytical Information- encompasses all summarized or aggregates transactional data and its primary purpose to
support analytical tasks. Also includes external information obtained from outside market an industry sources. Ex.
Trends, product statistics, future growth projections
Transaction processing system (TPS)
- basic system that serves the operational level and assists in making structured decisions
Online Transaction Processing (OLTP)
- capturing transaction information using technology to process, store and update data
Source Document- the original transaction record
Online Analytical Processing (OLAP)
- Analysis of info from external sources and transaction data to create business intelligence
Business Intelligence- Information that people use to support their analytical and strategic decision making efforts
Measuring Decision Success
Key Performance Indicators (KPIs) - measures that are tied to business drivers
Metrics- measurements that evaluate results to determine whether a project is meeting its goals
Efficiency IS metrics- Measure the performance of IS
Effectiveness IS Metric- measure the impact of IS on business processes and activities
6sigma is a performance improvement technique that tries to get something to 99.999% availability
Benchmark- Baseline values the system seeks to attain
Benchmarking- Process of continuously measuring system results, comparing those results to optimal system
performance (benchmark values), and identifying steps and procedures to improve system performance
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