Transaction Processing Systems
What is a TPS?
Characteristics of TPS
a Transaction Processing Model
Batch Processing vs. On-line Processing
TPS Applications
Transaction Processing System
Transaction processing systems(TPS) are informa-
tion systems that process data resulting from the
occurrence of business transactions.
What is a TPS?
an information system designed to process routine
business transactions
seeks time- and cost-efficiency by automating
repetitive operations in large volumes
interfaces with an organization’s other information
systems, such as DSS, EIS
centers around accounting and finance transactions
e.g,, airline reservation systems, order entry/pro-
cessing systems, bank’s account processing sys-
tems
The Major Characteristics of TPS
Large amounts of data are processed.
The sources of data are mostly internal, and the output is intended mainly for an
internal audience.
The TPS processes information on a regular basis: daily, weekly, monthly, etc.
Large storage (database) capacity is required.
High processing speed is needed due to the high volume.
TPS basically monitors and collects past data.
Input and output data are structured (i.e., standardized).
Low computation complexity is usually evident in TPS.
A high level of accuracy, data integrity, and security is needed.
High reliability is required.
Inquiry processing is a must.
Processing Cycle
in Transaction Processing System
Example TPS
Customer
Receipt
UPC & Inventory
Quantity Information
DB
Reporting System
UPC
POS
Barcode Scanner Product, Quantity,
TPS
Date, Time,
Quantity, Price
Date,
Time Exception
UPC Price
Inquiry Reports
Product
DB
Processing Cycle
Data Entry
Collecting and capturing transactions
The input activity in transaction processing
systems involves a data entry process. In
this process, data are captured or collected
by recording, coding and editing activities.
No longer manual:
– Either entering through input device or tech-
nologies Bar Codes or new technologies RFID,
Smart Cards etc
Processing Cycle
Database Maintenance
TPS helps ensure the databases are up-to-
date and correct.
Data Validation Activities – database trigger
Data Sharing & Concurrency Issues
Multiple/Distributed databases
Processing Cycle
Document/Report Generation
Examples
– purchase orders
– pay checks
– sales receipts
– invoices
– bank statements
An MIS also generates reports, but TPS reports are
operational (no analysis).
Inquiry processing
Itcan be provided by either batch or real
time processing.
making inquiries and receive responses con-
cerning the results of transaction activity.
Processing Cycle
Transaction Processing
Batch Processing Systems
Real Time/Online/Time Sharing Systems
Batch processing
Gathering source documents originated by business trans-
actions such as sales orders and other information's, into
groups called batches.
Recording transaction data on some type of input medium
such as magnetic disks or magnetic tape.
Sortingthe transactions in a transaction file in the same
sequence as the records in a sequential master file.
Processing transaction data creating an updated master file
and variety of documents.
Batch Processing
Transaction Trans. Data Documents/
Data File Processing Reports
New
Master
Old File
Master
File
Example screen for Batch Pro-
cessing
Files that You have
Transferred to CDX
List of All Batch
Processes run for
Screening Group
Available Processes
Available Reports
Batch Processes 14
Example; Batches of deposited checks are accumu-
lated and processed daily in the banking industry
Customer
Checking statements
batches of Transaction c and
Reader/sorter account
checks file management
processing
reports
Updated
master file
Real Time/Online Processing
This capability allows transaction data to be
processed immediately after they are generated
and can provide immediate output to end users.
Full fledged realtime systems for transaction
processing are popularly called online transac-
tion processing.
It depends on the internet, extranet and other
networks to provide telecommunications link
between the transaction terminals, client PC’s
servers and other computers.
On-line Processing
Transaction
Data
On-line
Documents/
Data
Transaction Reports
Processing
Data
Inquiries/
Reponses
Transaction
Data
Batch vs. Real-time
Real-time
Batch Processing
Processing
Process
transactionthendata
andarethere, no accumulation
accumulated
immediately processed
processed periodi-
Synchronization issues
cally
What if two people order the same product at the same ex-
tact time, but there isissues
No synchronization only one product left?
TPS Applications
Order Processing
Purchasing
Accounts Receivables & Accounts Payables
Receiving & Shipping
Inventory on Hand
Payroll
General Ledgers
Inquiry processing
Itcan be provided by either batch or real
time processing.
making inquiries and receive responses con-
cerning the results of transaction activity.
Executive Information System
EIS
Executive information system is developed to pro-
vide to top executives with immediate and easy access to
information about a firm’s critical success factors
(CSFs),that is key factors that are critical to accomplish
an organization’s strategic objectives.
DSS Vs EIS
DSS(Decision Support System) EIS(Executive information system)
Provides strategic information to
Provides information to mid-
dle level management. top level management.
Provides information regarding the
Provides interactive informa-
tion support to managers dur- key factors crucial for accomplish-
ing decision making process. ing organization’s strategic objec-
Sources of information are tives.
Sources of information are meet-
the internal transactions re-
port data. ings telephone calls, social activi-
ties, letters, memos, periodicals,
and report produced manually or by
computer systems.
