Online vs Transactional Processing

• Transactional data are raw facts supporting daily operations, includes purchase prices and reservation numbers
• Analytical information is the summarized transactional data used for analysis, like trend identification and projections

Online Processing Types

• Online Transaction Processing (OLTP) captures and processes transaction data at the operational level which focuses on every detail of transactions
• Online Analytical Processing (OLAP) analyzes summarized data to create business intelligence for analytical and strategic decisions which involves consolidation, drill-down, and slice-and-dice capabilities

Transaction Processing Systems (TPS)

• Basic systems at the operational level that serve clerks and analysts
• They record and process routine daily business transactions (OLTP) using transactional data
• Examples include payroll, order-entry, and POS systems
• Support structured decisions related to day-to-day operations
• They output transaction documents such as invoices and receipts
• They provide accurate and reliable underlying data for higher-level systems

Management Information Systems (MIS)

• Collect and aggregate data from TPS to support middle management at the operational management and tactical levels
• Support semi-structured decisions for evaluating company operations and implementing changes
• Input is output from TPS (transactional data)
• Output includes scheduled, exception, and drill-down reports
• Data is accessible to different functional areas within the organization

Decision Support Systems (DSS)

• Model data and information to support managers, analysts, and business professionals in analytical decision-making
• Can use both transactional and analytical information, using OLAP for robust DSS
• Useful for semi-structured to unstructured decisions
• Employ quantitative models such as sensitivity, what-if, and goal-seeking analysis
• Examples include BostonCoach dispatching system, insurance risk analysis, and Canadian Pacific Railway shipment tracking
• Often draw data from TPS for summarized information for decision support

Executive Information Systems (EIS)

• Specialized DSS for senior-level executives
• Incorporate external information in addition to internal data
• Contains highly summarized information
• Primarily used for strategic, unstructured decisions
• Common feature is digital dashboards that integrate and tailor information using KPIs
• Focus is on enabling executives to react quickly and make strategic adjustments such as Verizon's "The Wall of Shaygan"

Enterprise Resource Planning (ERP) Systems

• Aims to integrate individual departmental information systems into one organization-wide system
• Facilitates coordination, inventory control, planning, ordering, and sales
• Includes integrated databases for data consistency
• Supports more informed strategic decision-making and overall organizational effectiveness
• SAP, Oracle, and PeopleSoft are examples of ERP systems

Other Systems

• Data-mining systems analyze summarized data (from OLAP, DSS, EIS) to uncover patterns and trends for strategic insights
• Logistics management solutions optimize specific processes like delivery routes using real-time and historical data (e.g., Grocery Gateway)
• Customer Relationship Management (CRM) and Supply Chain Management (SCM) systems are classifications of enterprise systems focusing on customer interactions and the flow of goods, respectively and are often integrated within ERP systems