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MIS
DSS
TPS
OLAP
OLTP
Transaction Processing
Systems
As the name implies, Transaction Processing
Systems ("TPS") are designed to process
routine transactions efficiently and accurately.
A business will have several TPS.
for example:
- Billing systems to send invoices to customers
- Systems to calculate the weekly and monthly
payroll and tax payments
- Production and purchasing systems to
calculate raw material requirements
- Stock control systems to process all
movements into, within and out of the
business
Management Information
System
MIS is mainly concerned with internal
sources of information.
MIS usually take data from the
transaction processing systems (see
below) and summarise it into a series
of management reports.
MIS reports tend to be used by middle
management and operational
supervisors
Decision-support systems
DSS are specifically designed to help
management make decisions in
situations where there is uncertainty
about the possible outcomes of those
decisions.
DSS comprise tools and techniques to
help gather relevant information and
analyse the options and alternatives.
DSS often involves use of complex
spreadsheet and databases to create
"what-if" models.
Executive Support
System
An Executive Support System ("ESS") is
designed to help senior management make
strategic decisions. It gathers, analyses and
summarises the key internal and external
information used in the business.
A good way to think about an ESS is to imagine
the senior management team in an aircraft
cockpit - with the instrument panel showing
them the status of all the key business activities.
ESS typically involve lots of data analysis and
modelling tools such as "what-if" analysis to help
strategic decision-making.
OLAP
- OLAP (On-line Analytical Processing)
is characterized by relatively low volume
of transactions. Queries are often very
complex and involve aggregations.
For OLAP systems a response time is an
effectiveness measure.
OLAP applications are widely used by Data
Mining techniques.
In OLAP database there is aggregated,
historical data, stored in multi-dimensional
schemas (usually star schema).
OLTP
- OLTP (On-line Transaction Processing) is
characterized by a large number of short online transactions (INSERT, UPDATE, DELETE).
The main emphasis for OLTP systems is put on
very fast query processing, maintaining data
integrity in multi-access environments and an
effectiveness measured by number of
transactions per second.
In OLTP database there is detailed and
current data, and schema used to store
transactional databases is the entity model
(usually 3NF).
OLTP
OLTP system solved a critical business problem
of automating daily business functions and
running real time reports and analysis.
But these systems were not designed for
analysis and queries. Frustration started to
build in Business management as OLTP systems
could not provide the analysis on the data.
Resource heavy management analytical
queries started to affect performance of OLTP
systems and users of OLTP system also got
frustrated.
OLAP vs OLTP
Source of Data - OLAP gathers data from
multiple systems (including OLTP systems).
OLTP records data. OLAP gets data periodically
from backend systems (such as OLTP). OLTP is
updated regularly as transactions are
recorded.
Purpose Purpose of OLTP is to carry out day
to day business functions. Purpose of OLAP is
to support decision making and provide
answers to business and management
queries.
OLAP vs OLTP
Reporting OLTP reports tend to run on low
volume of data and returns few records. OLAP
queries typically run on huge volume of data.
Resource requirements OLAP requires
huge space and CPU resources to store
volume of data and run complex queries.
OLTP requires relatively less system
resources.
Execution Speed OLTP runs faster than
OLAP as queries tends to be simple. However,
for similar queries OLAP runs faster as OLAPs
are designed to run complex queries.
OLTP System
Online Transaction Processing
(Operational System)
OLAP System
Online Analytical Processing
(Data Warehouse
Source of data
Purpose of data
Inserts and
Updates
Queries
Processing
Speed
Space
Requirements
Data Base
Design
Backup and
Recovery