Transaction Processing System

Transaction Processing System
Submitted To Submitted To
Sujan Timsina Issacher Sharma
James Chaudhary
Mohit Adhikari
Kushal Prasad Dhungel
Kashib Niraula
Manju Pokharel
Table of Contents
 1. Introduction to Transaction Processing System.

 2. Types of Transaction Processing System.
 3. How does a Transaction Processing System Work?
 4. Importance of Transaction Processing System?
 5. Benefits of Transaction Processing System.
 6. Drawback of Transaction Processing System.
 7. OLTP (Online Transaction Processing)
 8. OLAP (Online Analytical Processing)
 9. Differences between OLAP and OLTP.
Introduction to Transaction Processing
System(TPS)
 A transaction processing system is a computerized system that performs and
records the daily routine transactions necessary to conduct business.
 basic business systems that serve the operational level of the organization.
 gather, stock, adjust and retrieve transactions.
 an event that generates or modifies data to be stored in an information
system.
 maintains balance and control of a particular organization’s process of
purchasing goods and services.
 responsible for coordinating the inventory and distribution of products,
managing transactions from payment accounts, and processing sales and
payrolls.
Examples :
 Concert ticket.
 Airline Reservation System
 Hotel Reservation System
 Payroll
 Sales Order Entry.
Types of TPS
1. Batch Processing System :

 transactions are accumulated over a period of time and processed as
a single unit.
 Whatever the time period in a batch system, there is some time delay
between the actual event and the processing of the transaction to
update the records of the organization.
Eg:
 a store may update its sales records every day after the store closes.
 a payroll system may process all the time cards every two weeks to
determine employee earnings and produce paychecks.
Types of TPS
2. Real-Time Processing System:

 transactions are processed immediately as they occur without any delay to
accumulate transactions.
 the records in the system always reflect the current status.
E.g:
 Airline ticket reservations i.e., when you book a ticket and select a seat, that
booking is made right away, and nobody else can get that same seat even a
second later. Any changes you make to your reservation are also updated in
real time.
 Stock market i.e. , when you submit an order to buy a stock, that order is
processed immediately and not at the end of the day.
How does a Transaction Processing System Work?
 By storing, sending, and receiving data through a database, the transaction

processing system (TPS) thus, ensures the success of each transaction.
 It also integrates with the business’s point of sale system, or POS, which
processes credit cards, prints receipts, and accepts and retains cash.
 Works in four components:
1. Input functions:
2. Processing functions:
3. Storage functions:
4. Output functions:
Importance of TPS
 Handling of operations
 Untapped markets
Benefits of TPS
 Performance
 Continuous availability
 Data integrity
 Ease of use
 Modular growth
 Improved security
Drawbacks of TPS
 Setup cost
 Incompatible
 Overload problem
 High internet
 Standard format
OLTP(Online Transaction Processing)
 type of data processing that consists of executing a number of transactions

occurring concurrently.
 enables the real-time execution of large numbers of database transactions by
large numbers of people, typically over the internet.
 supports transaction-oriented applications in a 3-tier architecture.
 administers the day to day transaction of an organization.
 ocused on query processing, maintaining data integrity in multi-access
environments as well as effectiveness that is measured by the total number of
transactions per second.
Example of OLTP
 ATM center
 Online banking
 Online airline ticket booking
 Sending a text message
 Order entry
 Add a book to shopping cart
Advantage and Disadvantage of OLTP
Advantage:
 offers accurate forecast for revenue and expense.
 makes transactions much easier on behalf of the customers.
 provides support for bigger databases.
 include insertion, updation, or deletion of data.
 Partition of data for data manipulation is easy
Disadvantage:
 hardware failures, cause online transactions get severely affected.
 affect to a large number of transactions, if server hangs.
 required a lot of staff working in groups in order to maintain inventory.
 allow multiple users to access and change the same data at the same time.
 makes the database much more susceptible to hackers and intruders.
OLAP(Online Analytical Processing)
 technology behind many Business Intelligence(BI) applications.

 software for performing multidimensional analysis at high speeds on large
volumes of data from a data warehouse, data mart, or some other centralized
data store.
 technology that enables analysts to extract and view business data from
different points of view.
 based on the multidimensional data model.
 divided into one or more cubes.
Examples of OLAP
 Financial Report
 Budgeting
 Marketing
 Sales Analysis and forecasting
OLAP Cubes
 OLAP cube is a data structure optimized for very quick data analysis.

 consists of numeric facts called measures which are categorized by
dimensions.
 also called the hypercube.
Advantage and Disadvantage of OLAP
Advantage
 platform for all type of business includes planning, budgeting, reporting, and
analysis.
 Information and calculations are consistent in an OLAP cube.
 Quickly create and analyze “What if” scenarios.
 provides the building blocks for business modeling tools, Data mining tools,
performance reporting tools.
Disadvantage
 cannot have large number of dimensions in a single OLAP cube.
 requires organizing data into a star or snowflake schema.
 Transactional data cannot be accessed.
 Any modification in an OLAP cube needs a full update of the cube.
Differences between OLTP and OLAP
Key Factors OLTP OLAP
Basic data analysis very large
Database Type data warehouse traditional DBMS
Data Modification insert, update and delete data reading

transaction
Response time Processing is little slow In Milliseconds
Normalization not normalized. normalized.
Function Day to day operation Decision Support
Users Information System Experts Decision Makers

Transaction Processing System

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Transaction Processing System

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Transaction Processing System

 1. Introduction to Transaction Processing System.

1. Batch Processing System :

2. Real-Time Processing System:

 By storing, sending, and receiving data through a database, the transaction

 type of data processing that consists of executing a number of transactions

 technology behind many Business Intelligence(BI) applications.

 OLAP cube is a data structure optimized for very quick data analysis.

Basic data analysis very large

Database Type data warehouse traditional DBMS

Data Modification insert, update and delete data reading

Response time Processing is little slow In Milliseconds

Normalization not normalized. normalized.

Function Day to day operation Decision Support

Users Information System Experts Decision Makers

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