Management Information System vs Transaction Processing System | Difference between TPS and MIS | 8

Simple Digital School

14 Jul 202309:47

Summary

TLDRThe video script delves into the concept of 'deferrens' in the context of transaction processing, system, and management information systems. It explains the operational level of a company, using Dairy Milk as an example, to illustrate how transaction processing systems work. The script further discusses the role of middle management in utilizing information systems to organize, evaluate, and forward data to higher management levels, emphasizing the importance of handling and managing transactions efficiently across the organization.

Takeaways

😀 The script discusses the common question of 'differences' in transaction processing, systems, and management information systems in universities.
🏫 It suggests subscribing to IT for free of cost beacon, which will be essential for developing the country's new systems.
💼 The script explains the different levels of management in information systems, focusing on the operational level, which is the most basic level.
📈 The operational level is where business transactions are processed, such as in a company like Dairy Milk, tracking the production and sales of various types of chocolate.
🔍 The middle level of information systems provides tools for managers to process transactions and organize data, which is then forwarded in a simplified list form.
📊 The top level of management involves decision-making based on reports generated from the middle level, focusing on high-volume data and exceptions.
🌐 The script mentions the global aspect, where data from multiple branches and countries is collected, stored, and modified into usable forms for decision-making.
📚 The script emphasizes the importance of handling and managing every transaction at the operational level, ensuring that all transactions are accounted for and managed properly.
🔧 The middle management system (MIS) is described as organizing, planning, valuing, and summarizing the input received from the operational level.
👨‍🏫 The script identifies the users of the DIPS system and MIS system, explaining their roles and responsibilities in processing transactions and making decisions.
't📈 The script also touches on the repetitive tasks and routine decisions made at the operational level, highlighting the importance of the DIPS system in assisting with these tasks.

Q & A

What is the main topic of the video script?
-The main topic of the video script is the concept of 'Deferens' in the context of transaction processing, systems, and management information systems.
What are the different levels of management mentioned in the script?
-The script mentions different levels of management such as the operational level, middle level, and top level, each serving different purposes and functions within an organization.
What is the Operational Level of an organization according to the script?
-The Operational Level is the most basic level where the business transactions are processed, such as in a company like Dairy Milk where the types and quantities of chocolate are recorded.
What is the role of the Management Information System (MIS) at the transaction level?
-At the transaction level, the MIS is responsible for recording and processing business transactions, such as sales, expenses, and payments, and organizing this data for further use.
How does the script describe the use of IT in various departments of an organization?
-The script describes that IT can be used by various departments to handle and manage transactions efficiently and effectively, providing tools for middle-level managers and organizing data for top-level decision-making.
What is the purpose of the Data Processing System (DPS) mentioned in the script?
-The DPS is used to process sales receipts, payments, and other transaction data, organizing it in a simple model format for further analysis and decision-making.
What does the script suggest about the importance of managing transactions at the operational level?
-The script suggests that every transaction must be handled and managed properly at the operational level to ensure the accuracy and efficiency of the business operations.
What is the role of the Management Information System (MIS) in organizing and evaluating data?
-The MIS organizes, evaluates, and presents data in a proper format for middle managers to understand and perform level analysis, helping in decision-making and managing routine tasks.
How does the script relate the MIS to the handling of exceptions in business operations?
-The script relates the MIS to handling exceptions by organizing and evaluating data to identify any unusual patterns or significant changes in business operations, such as a sudden drop or increase in demand for a product.
What kind of input does the script mention for the DPS system?
-The script mentions that the DPS system receives input such as transaction details, events, and sales receipts, which are then processed and documented.
How does the script describe the output from the DPS and MIS systems?
-The script describes the output from the DPS as complete detailed reports of every transaction, including time, quantity, and other specifics. The MIS system, on the other hand, provides organization, planning, valuation, and summaries in a format that top-level management can understand.

Outlines

00:00

📈 Operational Transaction Processing and Management Information Systems

The first paragraph discusses the common issue of transaction processing in university exams and the importance of developing an Information System (IS) to manage it. It introduces the concept of an Operational Level of the organization, where basic business transactions are processed, using the example of a chocolate company to illustrate how different types of chocolate are managed. The paragraph also touches on the role of IT in organizing and processing data across various departments and the importance of managing transactions efficiently at the operational level.

05:03

📊 IT's Role in Processing and Analyzing Transaction Data

The second paragraph delves into the role of Information Technology (IT) in taking input from the Data Processing System (DPS) and transforming it into a simple model for further analysis. It explains the process of generating operational level sales receipts and sorting, merging, and reporting the data. The paragraph also discusses the involvement of middle managers in decision-making based on the reports and the importance of understanding high-level analysis. It highlights the DPS system's ability to provide detailed reports on every transaction, including the time, quantity, and other specifics, and how the Management Information System (MIS) organizes, plans, and summarizes this data to provide actionable insights to top-level management.

Mindmap

Keywords

💡Transaction Processing

Transaction processing refers to the act of managing and recording business transactions in a company's database. In the video, it is a core concept as it discusses how systems manage various transactions like sales, receipts, and payments, which are essential for the operational level of an organization.

💡Management Information System (MIS)

MIS is a concept that involves the use of technology to gather, process, and analyze data to facilitate decision-making in an organization. The video script mentions MIS in the context of different levels of management and how it aids in processing and managing business transactions.

💡Operational Level

Operational level refers to the most basic level of an organization where day-to-day transactions are processed. The script uses this term to describe where the initial recording of business transactions, such as the quantity of chocolate produced by a dairy milk company, takes place.

💡Data Processing

Data processing is the manipulation of raw data to produce meaningful information. The video script discusses how various departments use data processing to handle transactions efficiently, emphasizing its importance at the operational level.

💡Information System

An information system is a collective term for various types of systems that manage and process information within an organization. The script mentions different levels of information systems, from operational to middle management, and their roles in transaction processing.

💡Middle Management

Middle management refers to a level of management between the operational and top management. In the script, it is mentioned as the level that uses information systems to organize data, evaluate it, and forward it to higher management for decision-making.

💡Enterprise Resource Planning (ERP)

ERP is a type of business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back-office functions. The script implies the use of ERP for managing the supply chain, including the production and distribution of products like chocolate.

💡Data Collection

Data collection is the process of gathering and measuring data from various sources. The script discusses the importance of data collection for understanding business transactions and making informed decisions at different levels of the organization.

💡Exception Reporting

Exception reporting involves generating reports that highlight unusual or unexpected events or data points. The video script mentions the use of exception reporting to identify significant changes in demand for products, such as chocolate, at specific locations or branches.

💡Decision Making

Decision making is the process of selecting from among alternatives. In the context of the video, decision making is facilitated by the information provided by the MIS, which helps managers at various levels to make informed choices based on the processed data.

💡Cost Efficiency

Cost efficiency refers to the relationship between the costs incurred by an organization in the production of goods or services and the benefits derived from the goods or services. The script discusses the importance of cost efficiency in the context of packaging and production processes, where understanding the cost structure can lead to better decision making.

Highlights

Differentiation in transaction processing is a common question in university exams.

Subscription is mandatory for anyone trying to develop a country's system.

The importance of IT in managing and organizing business transactions.

Description of an Operational Level Information System at the most basic level of an organization.

The role of the Operational Level in processing business transactions like sales, expenses, and payments.

How IT can be used by various departments to manage transactions efficiently.

The function of a Management Information System to provide tools for middle-level managers.

How information from the transaction level is processed and organized for further use.

The significance of managing every transaction at the operational level for effective management.

The role of IT in handling and managing transactions across a global enterprise.

How a transaction's details, such as quantity and destination, are tracked and documented.

The function of the Decision Support System (DSS) in collecting, storing, and modifying usable information.

The importance of input from the Operational and Management Information Systems for effective decision-making.

How IT systems provide input for processing sales receipts and other transactional data.

The role of the Management Information System in organizing, planning, and summarizing data for higher management levels.

The type of information provided by the DSS, including detailed reports and summaries of transactions.

The impact of IT on the cost of packaging and the structure of repetitive tasks in operational processes.

How the DSS helps in making decisions regarding unstructured problems and semi-structured problems.

The users of the Operational and Management Information Systems, including operational staff and middle managers.