The Transaction Control Systems

It has been generally established lately that how important info system is becoming for business processes. According to writers, information system is a field that merges business management with computer applications to smoothen the procedure for business in better a means. In simpler conditions, information system bridges in data, people, procedures and software applications and hardware to analyse and gather information digitally. This typically assists with assimilating information in an organised method for better features and functions of organisations. Traditionally information system was regarded as design designed to be completed principally from a specialized point of view. But with growing consciousness and acceptance towards the system has made people realise which it represents many other and broadened viewpoints that culminates stakeholders in order to attend to their economical, institutional, politics and other passions. Hence, it could not be wrong to say a systematic and useful platform or information system is most likely to tend to the purpose of reaching a built-in information model for an organisation.

Information System

Silver et al. (1995) identifies Information Systems as you which is carried out within an firm for the purpose of improving the effectiveness and efficiency of this organization. Features of the info system and characteristics of the business, its work systems, its people, and its own development and implementation methodologies along determine the amount to which that purpose is achieved. Where a band of scholars think that information connects with hardware, software, data, procedures and people'; another school of thought advocates Information system to add people, business processes and Information Systems.

Four classic Classes of Information System

Classification of Information system differs as per the business enterprise needs and the framework and level of organisations. The needs of information system differ as per the levels and decision composition needed at every level. Mainly, information need amounts in pursuing management capacity- Proper control, managerial aspects and operational functions. The next pyramids summarize the functions of organisation and the degrees of decision authority along with the associated classes of Information System.

TRANSACTION PROCESSING SYSTEMS

The pyramid from lower part starts off with lower management which deals with day to day businesses of the company. This class of information system is managed by lower management who symbolizes an company in day to day routine and business such as attendance of employees, publishing of entries in loan provider, processing of purchases, evaluating overdue buyer orders airline reservation function etc.

MANAGEMENT INFORMATION SYSTEMS

The second category of information required by the middle management is recognized as managerial information. The information required as of this level is used for making short-term decisions and plans for the business. Information like - sales examination for the past quarter or every year production details etc. - are categorized as this category. Management information system (MIS) caters to such information needs of the organization. Because of its capacities to fulfil the managerial information needs of the organization, Management Information Systems have grown to be a necessity for all big organizations. And because of its vastness, most of the best organizations have independent MIS departments to check out the related issues and proper functioning of the system.

DECISION SUPPORT SYSTEMS

In simpler words, it can be an interactive channel that integrates and collets information from assorted source to improve the non-routine decisions. The information generated here is not made available to lower level personnel nor do they want it. For example, trends and figures of revenue technology which assists with deciding insurance policies etc. These types of decisive data backed by information system will be required by mature management only and are called as Decision Support Systems.

EXECUTIVE INFORMATION SYSTEMS

The top level of this hierarchical classification of information system concerns only topmost management and the data integrated by information system is here now is useful for professionals only. Exec Information Systems requires at tactical management level which is coordinated and treated by top management in an company. This category facilitates the management with relevant data and information in convenient format necessary for strategic planning that is aimed at developing programs and create major decisions to the organisational goals

Banking Composition & Implementation of Information System

Banking is a captivating sector which offers in with enormous data on daily basis. Officially speaking a standard bank caters to the money related deal with customers. Generally it includes following services-

Customers' cutting down and Current bill management

Cheque services- selections and payments

Credit and debit cards

Handling of Lending options, insurance, fixed debris and other policies

In competitive environment, any lender strives to provide best of services facilitating convenience factor and simplicity to customer to get on competitive gain. Banking structure has evolved enormously since its inception. Where bank was started with manual maintenance of records on documents; now the sector has been computerised and IT have been playing quite a innovative role to bring transformation in banking. The various platforms a bank expands nowadays are - conventional retail bank outlet, ATM, online banking, Mobile Bank etc.

In this versatile scenario of functions and services, information requires a centric position and a proper handling and available of information gets very essential. Recently information system has been hotly debated to be a contributory tool to amalgamate all these functions by integrating all the information and data for required expert in right time and place.

Information system and banking

As has been discussed above information system will involve people, data and method. For any given standard bank or lender accuracy and well-timed availability of information is quite challenging. Inculcation of information system and technology have a tendency to solve the maximum of related issues and bring in efficiency in the machine and benefits to help ease the line of operations. For standard bank, an information system execute three basic functions-

It receive data from different sources as input

It creates information by handling the accumulated data

It exchanges the outcome to the worried authority viz. Managers, sales executive, accountant, cashier etc.

Functions of Information System in Bank

A few typical business procedures in bank that information system coordinates are-

Bank profile transactions

Bank lending options and insurance management

Business forecasts

Customer credits endorsement and credit terms

Property taxes evaluation

Stock transactions

Financial cashflow reports

The following section will elaborate software of different information system in bank operations.

TRANSACTION Control SYSTEMS

Every bank will rely on a system that can manage and assimilate its routine operations in organised manner with correctness. Standard bank in its operation requires encountering with numerous customers to package in with the payment or deposit demands. According to Ralph (2008) in absence of such systems, saving and control of such business purchase would consume the required time and absorb large sums of organisational resources. Data thus collected through these systems also finish up making valuable repositories which can later also be utilized in decision making. However, main use is to meet customers and offer a competitive benefits by increasing services and minimizing costs.

For the same type of functions, banking institutions deploy many type of purchase process system to be able to fully capture and process the data necessary to revise details regarding basic functions of the lender. For instance, loan company TPS systems standardise the tedious work linked with general banking deals for the handling of debris and withdraws, cashing of cheques, ATM & online banking functions and other processes.

TPS can be divided in two categories based on its way to process data-

Batch Control- It advises handling of data within the preset limits for certain time frame such as daily, weekly or regular monthly.

A conceptual number of Batch Control System

The above conceptual shape illustrates the way the batch operations system work with a loan company in processing of cheques that happen to be collected and then refined usually over specific time frame. It incorporates following 4 steps-

Gathering information of business trades in batches which in cases like this is cheques

Recording the info on specific documents and discs in type medium

Processing of transactions (cheques for this case) as per described process i. e. after verification, examining accounts etc and updating master file, records and a number of documents, for example customer paycheques or invoices.

Capturing and holding batches of ventures data at remote sites, and then transmitting it periodically to central computers for processing.

Real-time Processing- This calls for instant purchase needs such as money drawback from ATM or cash counter-top or online banking transactions. It offers a direct interface between individual and TPS allowing one business deal at time with instant results. Following figure explains how purchase process works on real-time basis.

A Typical Example of Banking Transaction Process System

Customer Activity

System Activity

Enter A/c number

Verify a/c no. - appropriate or not

Enter password (****)

Verify the password

Enter drawback amount

Verify if the total amount is within the drawback limits

Ledger

Updates the transaction in loan company records

Remove Receipt & Money

Dispense Money

Issue business deal Receipt

Ready for next transaction

To summarize, TPS in lender has 5 activities-

Data accessibility- accounts and customers entry

Transactions- bank orders- cheques, accounts and ATM transactions etc

Report and Documents processing

Database and Data files processing

Inquiry finalizing- Checking balance

MANAGEMENT INFORMATION SYSTEMS

MIS helps middle level managers with reviews and information that further helps them in taking unstructured decisions. TPS considers data entry and usual deals but MIS produces report about how trades are done more than a time period such as monthly or quarterly reviews. This data helps business determine the performance of bank or investment company and exactly how much business they did. Based on the info generated, sales insurance policy can be framed to focus on for next one fourth. For example, a sydney can reflect how many new accounts have been opened and just how many have been sealed. If any major discrepancy is seen in these figures when compared with previous quarter's information than a manager needs to take notice. He'll have to see if this is going on due to service offered by bank or if customers are dissatisfied and displeased with loan provider or credited to competition or it's exactly like that. Predicated on the examination and the causing reason, a line of action can be prepared by director to enhance the performance of standard bank in order to draw in and retain new customers.

DECISION SUPPORT SYSTEMS

Roping in around the definition given by writers like Alter (1980), Bonczek et al. ( 1981), Eager and Scott-Morton (1978), DSS can be identified to be always a system which-

Enhances decision with data for decision designers rather than exchanging them

Utilises information, documents, and reports

Solves problem with differing structure degrees- semi composition, unstructured

Facilitates effectiveness and not efficiency in decision making process

Velmurugan (2008) defines DSS as, an interactive information system that permits decisions making in unstructured or semi organized situations by facilitating information, models and data manipulation. Writers further argues that DSS method generally affects higher level management decision making with a moderately low occurrence and high potential outcomes where the time considered for considering through and modelling the challenge takes care of generously over time. It can be differentiated with MIS on accounts that it needs a macro approach rather than a target based mostly decisions that are usually taken through MIS. As explained above that through MIS, supervisor can draft a sales intend to cover up slipping customers for next one fourth. However, with Decision Support system circumstance is not. It requires a broader view. If this drop in customers is noticed for long-term than senior management requires a note and predicated on reports takes a decision. It could be anything based upon the problem. For instance- employing new staff or training the prevailing one if management thinks it's scheduled to employees' inefficiency. Installing new ATM machines if customers are withdrawing for not able to discover bank stores. New software installation for online banking channel in case there is painstaking effort that customer is facing while doing online transactions and so on. There can be range of other decisions that can be come to but everything is determined by managers' ability to believe and infer a conclusion based on the info attracted from DSS.

In loan provider typically DSS can help in decision related to pursuing areas-

Cash management and debts planning

Planning in mergers and acquisitions

Capital budgeting

Selecting R&D project

Evaluating financial risks

Structuring optimal lease

Financial examination and diagnosis

Real estate appraisal and investment

Funding proper product development

Setting interest levels for money market deposit accounts

Locating finance institutions & Managing portfolio

Small business financial planning

EXECUTIVE INFORMATION SYSTEMS

'Executive Information System' was first created in 1982 (Rockart and Treacy, 1982) to illustrate the type of systems a few older corporate officers were utilizing on a regular basis to gain access to information they needed. Watson et al (1991) characterises that EIS can be an information system that equips topmost management with interior and external data that contributes on the success factors of organisation without the need of intermediaries. This data is considered as very private and is made open to the topmost managers only who are capable to have major decisions for business process and structure of an company.

In a lender EIS can help executives with financial ratios and cash flow examination that further enhance them to map out capital financial commitment based on fads drawn from EIS information. It includes both inside and exterior data that gives a large picture of scenario before executive really think to generate a major decision in the lender. Executive information system is a responsibility-oriented medium that mixes budgeting and planning with control of performance reporting, and it could be considerably beneficial to finance professionals. EIS helps topmost management to concentrate on the long term goals by curbing in current time and beyond. This enables executives to generate income from and plan with a visionary strategy for years to come quickly to expand business predicated on current businesses and future projections generated from EIS information. It would hence not be incorrect to state that EIS is a substantial tool for executives to analyse financial styles, ratios and review bank's performance, its competition and market developments. .

Conclusion

It has been widely accepted that information system is ever more being used by increasingly more companies to streamline their business process in organized way. Factors such as efficiency and cost slice and time saving are being stated as top benefits of information system. Broadly information system is accrued with following advantages-

It allows company to keep a tabs on strength and weaknesses with the 360 diplomas assessment of accounts generated for income, employees performance etc

Trackback of customers' data and their feedback is useful for organisations to attain decisions for business

Streamlining of information and availableness to it whenever needed helps company to work efficiently

The above talk clearly shown that how information system can be integrated in an company (particularly loan provider) and how that company can experience in benefits from it. The four different classes of the system were defined and their implementation in banking operations has been illustrated in detail. A loan company is a place with certain predefined expectations and hence precision to them is very essential. Any inability in those on behalf of employees or any other reason can cost bank or investment company heaps - not only on monetary conditions but on brand image also. A customer deals with bank or investment company out of trust factor only. Henceforth, a flawless technology and apt use of the different information systems at different level is very appealing for lender. This newspaper didn't discuss the limitations which might come up but an organisation should keep a vouch upon them as ongoing process. Cultural and scientific concerns are cited because so many typical limits to the information system. Despite of this bottleneck that may arise along the way of popularity of information system, it holds tremendous potential to automate the process running a business and improve the overall efficiency of organisations.

References

Bonczek, R. H. , Holsapple, C. & Whinston, A. B. , 1981. Foundations of Decision Support Systems, Academics Press, New York.

Keen, P. G. & Scott Morton, M. S. , 1978. Decision support Systems: An organisational Perspective. Addison- Welson Inc. MA.

Mentzas, G. (nd). Towards Intelligent Organisational Information Systems. International Journal of Information Management. 14 (6), pp. 397-410.

Narayanasamy, K. & Velmurugan, M. S. , 2008. Request of Decision Support System in E-commerce. Communications of the IBIMA Volume 5.

Ralph, M. S. & Reynolds, G. , 2008. Fundamentals of Information Systems. Cengage Learning.

Rockart J. F. & Treacy M. , 1982. The CEO Goes On-line. Harvard Business Review, 60 (1)

Watson, H. J. and M. M. Hill (1983) Decision Support Systems or what didn't happen with MIS, Interfaces, 13(5), pp. 81-88.

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