CHAPTER 2

Transaction Processing System (TPS)

A transaction processing system (TPS) helps users process data transactions within a
database system that tracks transaction programs. It maintains balance and control
of a particular organization’s process of purchasing goods and services. It is
responsible for coordinating the inventory and distribution of products, managing
transactions from payment accounts, and processing sales and payrolls. As such, it is
highly beneficial when monitoring online transactions, as it allows for a momentary
delay between when a product is purchased to when it was sold.
An example of a transaction processing system at work is when a customer buys a
concert ticket. While the customer fills out his/her payment details, the system holds
the ticket for him/her so no other customers can buy it. In short, the system is
critical in ensuring that each ticket will not have two different owners.
Transaction is a defined as an exchange between two or more business
entities
It is important that either all action of transaction can be executed
completely are in case of some failure partial effects of transaction be under this
property is called as atomicity
A system failure should not result in database for getting about a transaction
that successfully completed this properties called as durability Events are
referred to as transactions, and keeping track of them requires a transaction
processing system. A transaction processing system, or TPS, is a system to capture
and process the detailed information necessary to update data on the fundamental
operations of an organization.
There are two ways to process transactions: using batches and in real time. In
a batch processing system, transactions are accumulated over a period of time and
processed as a single unit, or batch. For example, a store may update its sales
records every day after the store closes
In a real-time processing system, transactions are processed immediately as
they occur without any delay to accumulate transactions. Real-time processing is
also referred to as online transaction processing, or OLTP. In this case, the records in
the system always reflect the current status.A good example of a real-time
processing system would be airline ticket reservations. When you book a ticket and
select a seat, that booking is made

The four important features / characteristics include

Rapid response
-Fast performance is critical
-Turnaround time from transaction input to the production output must be a few
seconds or less
Reliability
-Breakdowns disturb operations
-Failure rates must be low
-If failure occurs, recovery must be quick and accurate
 Inflexibility
-Every transaction must be processed in the same way
-Flexibility results in too many opportunities for non standard operations, resulting in
problems due to different transaction data
Controlled processing
-Must support an organization's operations
-If roles and responsibilities are allocated, the TPS should maintain these
requirements

Transaction processing systems(TPS) collect, store, modify and retrieve the

transactions
-Transaction is an event that generates or modifies data to be stored in an
information system

Advantages of transaction processing system (TPS)

 Productivity:By using TPS, the staff of the company increases their productivity.
Also, customers get more trust and satisfaction in the company.
 Fast:The transactions are carried out in fast time and there is no delay. The real-
time transaction is also a type of TPS in which no delay in time occurs.
 Low cost:As most of the work is carried out by TPS so less staff is needed to be
hired.
 Large data:TPS can process a large amount of data. There are thousands of
transactions done by the TPS on daily basis.
 Use anywhere:TPS can be used anywhere you want. You can use it in
organizations, stores, banks, schools etc. Also, customers can do transactions
online from anywhere.
 Error recovery:If some data is lost in the transaction, then it can be retrieved by
the TPS. The system also self-solves issues and errors are detected and removed
by the system easily.
 Easy to use:Staff can easily use the TPS software and there is little or no training
required to use the TPS software. It is also user friendly.

Disadvantages of transaction processing system (TPS)

 Setup cost:The initial setup cost of TPS is high. You have to buy a license for TPS
software. Also, you need to buy computers, cameras and price detecting devices.
 Incompatible:Sometimes your software and hardware have compatibility
problems. Some hardware has drivers problems.
 Overload problem:Sometimes there occurs a high number of transactions on
the TPS so it slows down the system or it stops working.
 High internet:Users need to have a high internet connection to use the TPS.
 Standard format:TPS lacks a standard format.
Examples of transaction processing systems (TPS)

Some examples of TPS are:-

 Online store
 Buying through credit/debit card
 Bus/railway ticket reservation
 Payroll
 Employee record-keeping

Role of TPS in decision making

Transaction processing produces valuable input into many other systems in an
organization, such as management information systems and decision support
systems. A TPS serves as the foundation for these other systems. A TPS tracks
routine operations but does not provide much support for decision making.
For example, in the case of a bank account, a TPS keeps track of all the events
associated with a single account: deposits, withdrawals, transfers, fees, interest paid,
etc. This provides a good description of the account activity.

Management Information System:

Features of MIS:
DISADVANTAGES:

1. Highly sensitive requires constant monitoring.

2. Budgeting of MIS extremely difficult.
3. Quality of outputs governed by quality of inputs.
4. Lack of flexibility to update itself.
5. Effectiveness decreases due to frequent changes in top management

Example: Management Reporting Systems, Sales management System, Inventory

control System

The Role of Management Information Systems in Decision Making

Management information systems combine hardware, software and

network products in an integrated solution that provides managers with
data in a format suitable for analysis, monitoring, decision-making and
reporting. The system collects data, stores it in a database and makes it
available to users over a secure network.

 Rapid Access to Information

 Managers need rapid access to information to make decisions about

strategic, financial, marketing and operational issues. Companies collect
vast amounts of information, including customer records, sales data,
market research, financial records, manufacturing and inventory data and
human resource records. However, much of that information is held in
 separate departmental databases, making it difficult for decision-makers
to access data quickly.

 A management information system simplifies and speeds up information

retrieval by storing data in a central location that is accessible via a
network. The result is decisions that are quicker and more accurate.

 Decisions Based on Latest Information

 Management information systems bring together data from inside and

outside the organization. By setting up a network that links a central
database to retail outlets, distributors and members of a supply chain,
companies can collect sales and production data daily, or more frequently,
and make decisions based on the latest information.

 Teams Can Collaborate

 In situations where decision-making involves groups, as well as individuals,

management information systems make it easy for teams to make
collaborative decisions. In a project team, for example, management
information systems enable all members to access the same essential data,
even if they are working in different locations.

 Interpret Results Efficiently

 Management information systems help decision-makers understand the

implications of their decisions. The systems collate raw data into reports
in a format that enables decision-makers to quickly identify patterns and
trends that would not have been obvious in the raw data.

 Decision-makers can also use management information systems to

understand the potential effect of change. A sales manager, for example,
can make predictions about the effect of a price change on sales by
running simulations within the system and asking a number of “what if the
price was” questions.

 Ease of Presentation

 The reporting tools within management information systems enable

decision-makers to tailor reports to the information needs of other parties.
If a decision requires approval by a senior executive, the decision-maker
 can create a brief executive summary for review. If managers want to
share the detailed findings of a report with colleagues, they can create full
reports and provide different levels of supplementary data.

Decision Support System

A decision support system (DSS) is a computerized program used to support

determinations, judgments, and courses of action in an organization or a business. A
DSS sifts through and analyzes massive amounts of data, compiling comprehensive
information that can be used to solve problems and in decision-making.

Typical information used by a DSS includes target or projected revenue, sales

figures or past ones from different time periods, and other inventory- or
operations-related data.

DSS uses the summary information, exceptions, patterns, and trends using the
analytical models. A decision support system helps in decision-making but does not
necessarily give a decision itself. The decision makers compile useful information
from raw data, documents, personal knowledge, and/or business models to identify
and solve problems and make decisions.

Programmed and Non-programmed Decisions

There are two types of decisions - programmed and non-programmed decisions.
Programmed decisions are basically automated processes, general routine work,
where −
These decisions have been taken several times.
These decisions follow some guidelines or rules.
For example, selecting a reorder level for inventories, is a programmed decision.
Non-programmed decisions occur in unusual and non-addressed situations, so −
It would be a new decision.
There will not be any rules to follow.
These decisions are made based on the available information.
These decisions are based on the manger's discretion, instinct, perception and
judgment.

For example, investing in a new technology is a non-programmed decision.

Decision support systems generally involve non-programmed decisions. Therefore,
there will be no exact report, content, or format for these systems. Reports are
generated on the fly.
Attributes/Features of a DSS
Adaptability and flexibility
High level of Interactivity
Ease of use
Efficiency and effectiveness
Complete control by decision-makers
Ease of development
Extendibility
Support for modeling and analysis
Support for data access
Standalone, integrated, and Web-based

Characteristics of a DSS
 Support for decision-makers in semi-structured and unstructured problems.

 Support for managers at various managerial levels, ranging from top executive
to line managers.

 Support for individuals and groups. Less structured problems often requires the
involvement of several individuals from different departments and organization
level.

 Support for interdependent or sequential decisions.

 Support for intelligence, design, choice, and implementation.

 Support for variety of decision processes and styles.

 DSSs are adaptive over time.

Benefits of DSS
 Improves efficiency and speed of decision-making activities.

 Increases the control, competitiveness and capability of futuristic decision-

making of the organization.

 Facilitates interpersonal communication.

 Encourages learning or training.

 Since it is mostly used in non-programmed decisions, it reveals new approaches

and sets up new evidences for an unusual decision.

 Helps automate managerial processes.

Advantages of a Decision Support System

 A decision support system increases the speed and efficiency of decision-

making activities. It is possible, as a DSS can collect and analyze real-time
data.
 It promotes training within the organization, as specific skills must be
developed to implement and run a DSS within an organization.
 It automates monotonous managerial processes, which means more of the
manager’s time can be spent on decision-making.
 It improves interpersonal communication within the organization.

Disadvantages of Decision Support Systems

Besides limitations, decision support systems also have some disadvantages, such as:

 Information Overload: A computerized decision making system may

sometimes result in information overload. Since it analyzes all aspects of a
problem, it leaves a user in a dilemma what to consider and what not to
consider. Not each bite of information is necessary in decision making. But
when it’s present, a decision maker finds it difficult to ignore information that
is not a priority.
 Too much Dependence on DSS: It is true that decision support systems are
integrated into businesses to make everyday decisions faster and more easily.
Some decision makers develop a tendency to depend too much on
computerized decision making and don’t want to apply their own brains.
Clearly, there is a shift in focus and decision makers may not hone their skills
further because of excessive dependence on DSS.
 Devaluation of Subjectivity: A decision support system promotes rational
decision making by suggesting alternatives basis the objectivity. While
bounded rationality or restricted irrationality plays a critical role in decision
making, subjectivity cannot and should not be rejected. A DSS promotes
objectivity and relegates subjectivity, which can have serious impact on a
business.
 Overemphasis on Decision Making: Clearly the focus of computerized
decision making is on considering all aspects of a problem all the time, which
may not be required in many of the situations. It is essentially important to
train the users to ensure effective and optimal use of DSS.
 Cost of Development: The cost of decision making decreases once a decision
support system is installed. But development and implementation of a DSS
requires a huge monetary investment. Customization may attract higher cost.
If you’re on a tight budget, you might not get a customized DSS specific to your
need
Components of a DSS
Following are the components of the Decision Support System −

Database Management System (DBMS) − To solve a problem the necessary data

may come from internal or external database. In an organization, internal data are
generated by a system such as TPS and MIS. External data come from a variety of
sources such as newspapers, online data services, databases (financial, marketing,
human resources).

Model Management System − It stores and accesses models that managers use to
make decisions. Such models are used for designing manufacturing facility,
analyzing the financial health of an organization, forecasting demand of a product
or service, etc.

Support Tools − Support tools like online help; pulls down menus, user interfaces,
graphical analysis, error correction mechanism, facilitates the user interactions with
the system.

Examples of DSS

Status Inquiry System − It helps in taking operational, management level, or middle

level management decisions, for example daily schedules of jobs to machines or
machines to operators.

Data Analysis System − It needs comparative analysis and makes use of formula or
an algorithm, for example cash flow analysis, inventory analysis etc.

Information Analysis System − In this system data is analyzed and the information
report is generated. For example, sales analysis, accounts receivable systems,
market analysis etc.

Accounting System − It keeps track of accounting and finance related information,

for example, final account, accounts receivables, accounts payables, etc. that keep
track of the major aspects of the business.

Model Based System − Simulation models or optimization models used for decision-
making are used infrequently and creates general guidelines for operation or
management.
 Role of DSS in decision making

Decision support systems (DSS) are interactive software-based systems intended to

help managers in decision-making by accessing large volumes of information
generated from various related information systems involved in organizational
business processes, such as office automation system, transaction processing system,
etc.

GDSS

GDSS is the abbreviation for Group Decision Support System. It is a system that
supports decision-making and has been designed and structured in such a way so
that the members constituting a group can interact with each other to arrive at a
particular decision. It provides support for various group decision-making activities
such as file sharing, integration of the individual opinions with that of the group,
communication, modelling of group actions and any other action which requires
interaction of the group members.

The decision support systems that have been mentioned till now facilitate a single
person to take decisions by providing computerized support. These decisions fall into
the unstructured or semi-structured category. Most of the decisions that have to be
taken in the organization are generally a group effort rather than taken by a single
person.

The main characteristic of the Group Decision Support Systems or GDSS is to support
exchange and flow of information and ideas seamlessly between various members of
the decision-making group. It also maintains the privacy of the members. There are
also many other terms that have been introduced for the use of information
technology in decision-making within a group. Some of the popular terms that are in
use include Group Support System (GSS), Computer-Supported Co-operative Work
(CSCW), computerized collaborative work support and Electronic Meeting System
(EMS). Groupware is the term that has been coined for software used in such a
scenario.
Thus, a computer-based system is interactive in nature and helps in solving
problems that are unstructured in nature when a group of decision makers are
working in collaboration with each other.

Advantages of GDSS

1) More Information in Less Time :

It is possible to gather huge amount of information in a very short time period as
GDSS facilitates the members of the team to work parallel.

2) Greater Participation :
The risks associated with conformity pressure and groupthink is greatly decreased
when the members of the group work in a GDSS because the members are able to
express their thoughts freely. This is due to the anonymity feature extended by GDSS.

3) More Structure :
In a GDSS environment the discussions are much more concentrated and focused.
Irrelevant degradation are greatly reduced.

4) Automated Documentation :
Comments are preserved forever and the system provides the result without any
delay. Excellent graphics makes viewing more attractive.

Disadvantages of GDSS

1) Cost :
A significant amount of cost may be associated with putting up the infrastructure
consisting of the room, network connectivity and the software.

2) Security :
This risk arises when the facility for setting up GDSS has been rented. There are
chances that information gets leaked to the peers by a low level employee.

3) Technical Failure :
The system must be properly implemented to reduce the risk associated with loss of
connectivity and power loss. It is highly dependent on LAN/WAN infrastructure and
bandwidth.

4) Keyboarding Skills :
If the members get frustrated they might participate less.

5) Training :
There is variation in the learning curve of the user in various situations.

6) Perception of Messages :
MIS-interpretations may occur in case the members communicate less verbally.

Features of GDSS

1) Ease of Use :
It consists of an interactive interface that makes working with GDSS simple and easy.

2) Better Decision Making :

It provides the conference room setting and various software tools that facilitate
users at different locations to make decisions as a group resulting in better decisions.

3) Emphasis on Semi-structured and Unstructured Decisions :

It provides important information that assists middle and higher level management
in making semi-structured and unstructured decisions.
4) Specific and General Support :
The facilitator controls the different phases of the group decision support system
meeting (idea generation, discussion, voting and vote counting, etc.) what is
displayed on the central screen and the type of ranking and voting that takes place,
etc. In addition, the facilitator also provides general support to the group and helps
them to use the system.

5) Supports all Phases of the Decision Making :

It can support all the four phases of decision making, viz intelligence, design, choice,
and implementation.

6) Supports Positive Group Behavior :

In a group meeting, as participants can share their ideas more openly without the
fear of being criticized, they display more positive group behavior towards the
subject matter of the meeting.

Components of GDSS
1) Hardware :
It includes electronic hardware like the computer, equipment used for networking,
electronic display boards and audiovisual equipment. It also includes the conference
facility, including the physical set up – the room, the tables, and the chairs – laid out
in such a manner that they can support group discussion and teamwork.

2) Software Tools :
It includes various tools and techniques, such as electronic questionnaires, electronic
brainstorming tools, idea organizers, tools for setting priority, policy formation tool,
etc. The use of these software tools in a group meeting helps the group decision-
makers to plan, organize ideas, gather information, establish priorities, take
decisions and document the meeting proceedings. As a result, meetings become
more productive.

3) People :
It compromises the members participating in the meeting, a trained facilitator who
helps with the proceedings of the meeting, and an expert staff to support the
hardware and software. The GDSS components together provide a favorable
environment for carrying out group meetings

Role of GDSS in decision making

GDSS make meetings more productive by providing tools to facilitate planning,

generating, organizing, and evaluating ideas; establishing priorities; and
documenting meeting proceedings for others in the firm. GDSS consist of three
basic elements: hardware, software tools, and people
Executive Information System/Executive Support System

An information system designed to cater the specific needs of executives is known

as Executive Information System (EIS). It is also known Executive Support System
(ESS).

EIS is commonly considered as a specific form of Decision Support Systems (DSS) as it

helps in the information gathering and decision-making process of senior executives
in a company and meeting the strategic goals of the organization. This is ensured by
easy access of internal as well as external data.

Executive Information System is an association of many features of Management

Information System (MIS) and DSS. It was first developed to meet the requirement of
the top management for strategic information. This provided the management team
with instant and easy access to information about a company's Critical Success
Factors (CSF) which are important for attaining a company's strategic goals.

Definitions of Executive Information System

"EIS is a resource tool; a system that delivers rapid access to the selected key
information executives need for their decision making. User should need no IT or
keyboarding skills. Access is more likely to be via icons and a mouse or a touch
screen, than a keyboard. Data is presented with the help of color and graphics, in a
form which is highly structured and easy to understand".

"Executive Information System (EIS) is 1 computer-based information delivery and

communication system designed to support the needs of top executives".

Features/Characteristics of Executive Information System (EIS)

The Executive support system characteristics are explain below :

1) Drill-Down Capabilities :
This helps the executive to get the details from particular information, e.g., drop in
corporate sales in a particular region. In systems that use graphical user interface,
hypertext-style connections are used for information gathering. In menu-driven
systems, sub-menus are used to access the detailed information at each level.

2) Designed with Management's Critical Success Factors In Mind :

Each company has its own critical aspects to achieve the organizational objectives.
These aspects can be at the individual, departmental and organizational level.

3) Status Access, Trend Analysis and Exception Reporting :

This permits executives to get the recent data on any key variable. Trend analysis
supports the executive to study data over a given timeline. Hence, timing and
 significance of information are too crucial. Permission to highlight deviations from
the established norm in the organization is allowed in case of exception reporting,
which also include reason of deviation.

4) Personalized Analysis :
Built-in functions are used to examine problematic situations in EIS. With the help of
these functions, executives become capable to specify the data required for the
analysis and the format type (in which results are displayed) of results.

5) Navigation of Information :
This allows access of large amounts of data in a very short time span with accurate
results. Forward and backward path access, skipping screens while accessing a
selected part of the system are the examples of it.

6) Presents Graphical, Tabular and/or Textual Information :

Terminal presentation of gathered information to executive users may be in various
formats like textual formats, tabular and/or graphical.

Advantages of Executive Information System (EIS)

Importance of executive support system are explain below :

 Executive Support System or Executive Information System can be easily used

by upper level executives for decision-making, as extensive computer knowledge is
not required for this.
 It has trends analysis capability.
 Enhances the manager's leadership skills.
 Helps in better personal thinking and decision making.
 It involves strategic control flexibility.
 Leads to healthy competition in the market place.
 Existing information can be easily accessed.
 Acts as an instrument of change.
 An executive time horizon is increased.
 Leads to a better reporting system.
 Helps executives to get a better mental model of business.
 Assists in consensus building and communication.
 Adds to the efficiency, timeliness, and accuracy of office automation.
 Considerably reduces time taken for finding and integrating information.
 Organization's performance can be recognized early.
 Detailed scrutiny of critical success factors.
 Provides better understanding of enterprise operations.
 Increases productivity by helping time and team coordination.
 Disadvantages of Executive Information System

 Its functions are limited, as it cannot perform complex calculations.

 It is difficult to quantify the advantages and justify its implementation.
 Information overload is encountered by executives.
 Systems are prone to become slow, large and hard to manage.
 Keeping recent data is tough.
 Leads to less reliable and insecure data.
 Huge cost of implementation encountered by small scale organizations.

Role of EIS in Decision making:

An executive information system (EIS) is a decision support system (DSS) used to
assist senior executives in the decision-making process. It does this by providing
easy access to important data needed to achieve strategic goals in an organization.
An EIS normally features graphical displays on an easy-to-use interface.

Expert System

An expert system is an advanced computer application that is implemented for the

purpose of providing solutions to complex problems, or to clarify uncertainties
through the use of non-algorithmic programs where normally human expertise will
be needed. Expert systems are most common in complex problem domain and are
considered as widely used alternatives in searching for solutions that requires the
existence of specific human expertise. The expert system is also able to justify its
provided solutions based on the knowledge and data from past users. Normally
expert systems are used in making business marketing strategic decisions, analyzing
the performance of real time systems, configuring computers and perform many
other functions which normally would require the existence of human expertise.

The difference between an expert system with a normal problem-solving system is

that the latter is a system where both programs and data structures are encoded,
while for expert system only the data structures are hard-coded and no problem-
specific information is encoded in the program structure. Instead, the knowledge of
a human expertise is captured and codified in a process known as knowledge
engineering. Hence, whenever a particular problem requires the assistance of a
certain human expertise to provide a solution, the human expertise which has been
codified will be used and processed in order to provide a rational and logical solution.
This knowledge-based expert system enables the system to be frequently added
with new knowledge and adapt accordingly to meet new requirements from the
ever-changing and unpredictable environment.
 The major components of expert system are:

 Knowledge base – a set of rules as representation of the expertise, mostly in

IF THEN statements.
 Working storage – the data which is specific to a problem being solved.
 Inference engine – the code at the core of the system which derives
recommendations from the knowledge base and problem-specific data in working
storage.
 User interface – the code that controls the dialog between the user and the
system.

There are certain major roles of individuals who interact with the expert system to
fully exploit its functionality and capability. They are the:

 Domain expert – the individual or individuals whose expertises are solving

the problems the system is intended to solve;
 Knowledge engineer – the individual who encodes the expert’s knowledge in
a form that can be used by the expert system;
 User – the individual who will be consulting with the system to get advice
which would have been provided by the expert.

Majority of the expert systems are built with expert system shells which contains an
inference engine and user interface. The shell will be used by a knowledge engineer
to build a system catered for specific problem domain. Sometimes expert systems
are also built with custom developed shells for certain applications. In this scenario,
there will be another additional individual

 System engineer – the individual who builds the user interface, designs the
declarative format of the knowledge base, and implements the inference engine.

Depending on the size of the project, the knowledge engineer and the system
engineer might be the same person. For a custom built system, the design of the
format of the knowledge base and the coding of the domain knowledge are closely
related. The format has a significant effect on the coding of the knowledge.

One of the major hurdles to overcome in building expert systems is the knowledge
engineering process. The process of the codifying the expertise into a required rule
format can be a challenging and tedious task. One major advantage of a customized
shell is that the format of the knowledge base can be designed to facilitate the
knowledge engineering process.

Since the major challenge in expert system development is the building of the
knowledge base, it is encouraged that gap and difference between the expert’s
representation of the knowledge and the representation in the knowledge base
should be minimized. With a customized system, the system engineer can
implement a knowledge base whose structures are as close as possible to those used
by the domain expert.
 Expert System Features

There are a number of features which are commonly used in expert systems. These
features allows the users to fully utilize the expert system’s capability conveniently in
providing the most logical and reasonable decision in a problematic situation.

 Backward chaining – an inference technique which continuously break a goal

into smaller sub-goals which are easier to prove via IF THEN rules
 Dealing with uncertainties – the system has the capability to handle and
reason with conditions that are uncertain and data which are not precisely known
 Forward chaining – an inference technique which deduce a problem solution
from initial data via IF THEN rules
 Data representation – the method where the specific problem data is stored
and accessed in the system
 User interface – that portion of the code which creates an easy to use system;
 Explanations – the ability of the system to explain the reasoning process that
it used to reach a recommendation.

The Advantages of Using Expert System

Expert system has been reliably used in the business world to gain tactical
advantages and forecast the market’s condition. In this globalization era where every
decision made in the business world is critical for success, the assistance provided
from an expert system is undoubtedly essential and highly reliable for an
organization to succeed. Examples given below will be the advantages for the
implementation of an expert system in business:

1. Providing consistent solutions – It can provide consistent answers for

repetitive decisions, processes and tasks. As long as the rule base in the system
remains the same, regardless of how many times similar problems are being tested,
the final conclusions drawn will remain the same.
2. Provides reasonable explanations – It has the ability to clarify the reasons
why the conclusion was drawn and be why it is considered as the most logical choice
among other alternatives. If there are any doubts in concluding a certain problem, it
will prompt some questions for users to answer in order to process the logical
conclusion.
3. Overcome human limitations – It does not have human limitations and can
work around the clock continuously. Users will be able to frequently use it in seeking
solutions. The knowledge of experts is an invaluable asset for the company. It can
store the knowledge and use it as long as the organization needs.
4. Easy to adapt to new conditions – Unlike humans who often have troubles in
adapting in new environments, an expert system has high adaptability and can meet
new requirements in a short period of time. It also can capture new knowledge from
an expert and use it as inference rules to solve new problems.
 The Disadvantages of Using Expert System

Although the expert system does provide many significant advantages, it does have
its drawbacks as well. Examples given below will be the disadvantages for the
implementation of an expert system in business:

1. Lacks common sense – It lacks common sense needed in some decision

making since all the decisions made are based on the inference rules set in the
system. It also cannot make creative and innovative responses as human experts
would in unusual circumstances.
2. High implementation and maintenance cost – The implementation of an
expert system in business will be a financial burden for smaller organizations since it
has high development cost as well as the subsequent recurring costs to upgrade the
system to adapt in new environment.
3. Difficulty in creating inference rules – Domain experts will not be able to
always explain their logic and reasoning needed for the knowledge engineering
process. Hence, the task of codifying out the knowledge is highly complex and may
require high
4. May provide wrong solutions – It is not error-free. There may be errors
occurred in the processing due to some logic mistakes made in the knowledge base,
which it will then provide the wrong solutions.

Role of ES in Decision Making:

Expert Systems are computerized tools designed to enhance the quality and
availability of knowledge required by decision makers in a wide range of industries.
Expert Systems are also used to help the students to make rightful career decisions
and become efficient professionals after completing their studies.

The use of an expert system is highly beneficial as it helps in improving decision

quality and reducing expenses related to consulting with experts for resolving the
problems. Expert systems are applied in different fields such as transportation,
medical, education, and others to support an easy decision-making process.

OFFICE AUTOMATION SYSTEM (OAS)

Office Automation is a necessity for modern offices. The word office automation
denotes replacement of manual office operations by machine. In simple terms, office
automation is the use of computer systems to execute a variety, for operations such
as word processing, electronic filing, accounting, and e-mail. The operations are the
basic requirements of any office or department within an organization.
A variety of office automation devices are used in modern offices which include FAX
machines, copiers, computers, printers etc. The Office Automation System (OAS) is a
software system typically used to create, collect, store, transmit and digitally
manipulate the office information needed to accomplish the desired task.
Example: Microsoft Office suite.
FEATURES OF OFFICE AUTOMATION SYSTEM

Some of the important features of an Office Automation System are listed below:

 It involves the use of computer hardware, software and applications to digitally

collect create, store, manipulate, and transmit the information necessary for
performing tasks and meeting office goals.

 Office Automation is now a ubiquitous system i.e. you can use this s 5 system
anywhere by using Internet.

 It handles all the office functions which include dictation, typing, filing, copying,
FAX,
 and e-mails etc.

 It supports integration with other software.

 . G-suite is a powerful set of web-based office automation tools or applications

that Google has bundled together to meet the needs of businesses, schools,
colleges. government agencies, and other organizations of any size. The primary
G-Suite tools include: G mail, Drive, Docs, Sheets, Slides, Forms, Calendar and
Google+.

 A cloud-based office automation system that comes with features that help you
set access privileges and one that has advanced security protocols is the best
option.

ADVANTAGES OF OFFICE AUTOMATION SYSTEM

Office automation is the backbone of organizations which makes work easier. Some
of the major advantages of using an Office Automation System are listed below:

 It eliminates the need for a large staff.

 It reduces storage space, speeds retrieval and allows several employees to

access the same data at the same time.

 It handles large volume of work in a better manner with greater accuracy and
speed.

 It increases the productivity of an organization. It facilitates better

communication..

 It reduces the operational cost of an organization,

 It saves time and resources of an organization.

 Paperless office.

 Smart Monitoring.

DISADVANTAGES OF OFFICE AUTOMATION SYSTEM

Some of the major disadvantages of using an Office Automation System are listed
below:

 Office automation systems are quite expensive. Purchasing hardware and

software needed for Office automation system involves huge amount.

 Office automation system disturbs routine business work, everyone depends on

computer and staff becomes lazy.

 Older or less-skilled employees who are used to manual methods might find it
difficult to operate and adjust to automatic processes. This could require
additional and time- consuming training
 Office automation system may lead to security problems. Hackers may hack
important information when e-mails or etc are sent. .

 If automated system would not work properly due to some reasons, then you
are unable to continue your business manually also

ROLE OF OFFICE AUTOMATION IN DECISION MAKING PROCESS

Office Automation includes any electronic system that makes different internal and
external organizational communications or facilitates them.

Office automation system helps to make sound business decisions based on available
data Data is the ultimate decision-maker, and it's important for your business to
compare a process history, its speed, the outcome quality, etc.

It is a powerful tool that can be used to eliminate manual processes, identify

inefficient workflows, and facilitate informed decision-making.

Office automation systems give organizations access to large data sets, reports, and
analytics. Access data enables more informed decisions. Moreover, by analyzing data
and key performance indicators, organizations can implement improvements to their
processes to remove bottlenecks and other inefficiencies.