TABLE OF CONTENT.

INTRODUCTION………………………………………………………………………………………………2
COMPUTER BASED INFORMATION…………………………………………………………………3-8
HOW AI IS CONTRIBUTION TO INFORMATION SYSTEM………………………………..9-10
CONCLUSION………………………………………………………………………………………………..11
REFERENCES…………………………………………………………………………………………………12

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INTRODUCTION.
An information system (IS) is an interconnected set of components used to collect,
store, process and transmit data and digital information. At its core, it is a collection
of hardware, software, data, people and processes that work together to transform
raw data into useful information. An IS supports a variety of business objectives
such as improved customer service or increased efficiency.

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 1. TRANSACTION PROCESSING SYSTEM

Transaction process system (TPS) is one of the computer-based information systems

that is used to collect, modify and retrieve business transactions on demand. Any
running business conducts several transactions at any given point in time. These
business transactions do not conform to just buying and selling of products but also
include deposits in banks, inventory counts, payment data about the newly
employed, etc. A transaction processing system handles these transactions. Another
purpose of a transaction processing system is that it can be employed to update a
business’s transaction records. It can then conveniently store the whole collection of
records to produce business reports.

Transaction processing systems also find uses as payroll systems, stock control
systems, and billing systems. Using a Transaction processing system, a business can
safely meet all its contractual requirements. It can also store customer information
in a secure location and provide access to it as and when required to the concerned
authority. One of the primary benefits of using a transaction processing system is its
ability to maintain a stable database from which data can be retrieved easily.

Moreover, the TPS can process volumes of data in real-time. The system does this in
batches to better manage the processing time. Therefore, it can be derived that TPS
is also responsible for providing premium customer experience and satisfaction.
Using an efficient TPS allows a business to build cordial and reliable relationships
with other businesses and customers because of its availability around the world,
regardless of the location and language.

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IMPORTANT OF TRANSACTION PROCESSING SYSTEM.

The importance of transaction processing system are:

 Transaction Processing System is an excellent technology in handling and

managing the everyday operations of any given organization. It allows
multitasking at a wider level with an unmatched ability to process thousands
of transactions at the same time without any delay or break-down.

 Transaction Processing System is a carrier tool for any business since it gives
businesses the freedom to operate in different segments of society by
working remotely. This operability gives the businesses an opportunity to tap,
exist and grow in newer markets that are raw and full of opportunities.

ADVANTAGES OF TRANSACTION PROCESSING SYSTEM.

The advantages of transaction processing system are:

 Productivity: By using transaction processing system, 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 transaction processing system in which
no delay in time occurs.

 Low cost: As most of the work is carried out by transaction processing

system so less staff is needed to be hired.

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  Large data: transaction processing system can process a large amount of
data. There are thousands of transactions done by the transaction processing
system on daily basis.

 Use anywhere: transaction processing system 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 transaction processing system. The system also self-solves
issues and errors are detected and removed by the system easily.

 Easy to use: Staff can easily use the transaction processing system software
and there is little or no training required to use the transaction processing
system software. It is also user friendly.

DISADVANTAGES OF TRANSACTION PROCESSING SYSTEM.

The disadvantages of transaction processing system are:

 Setup cost: the initial setup cost of transaction processing system is high.
You have to buy a license for transaction processing system 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 transaction processing system so it slows down the system or it stops
working.

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  High internet: users need to have a high internet connection to use the
transaction processing system.

 Standard format: lacks a standard format.

TYPES OF TRANSACTION PROCESSING SYSTEM.

There are two (2) types of transaction processing system.

 Batch processing
 Real-time processing

Batch Processing: Batch processing is when clusters of transactions are refined

simultaneously using a computer system. This method, although designed to be
efficient for breaking down bulky series of programs, has a drawback as there is a
delay in the transaction result.

Real-time Processing: Real-time processing carries out its transactions

exclusively; this method ensures a swift reply on the condition of the transaction
result. It is an ideal technique for dealing with singular transactions.

COMPONENT OF TRANSACTION PROCESSING SYSTEM.

There are four main components of transaction processing system.

 Inputs: is an original request for a product or payment that an outside party

sends to a company's transaction processing system. If your company uses
batch processing, its transaction processing system stores groups of inputs

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 and then processes them at a later time. In comparison, if your company uses
a real-time, it processes each input as it arrives.
 Processing System: reads each input and creates a useful output, such as a
receipt. This element can help you define the input data and what the output
should be. Based on the kind of TPS your company is using, processing times
can vary.
 Storage: component of transaction processing system refers to where a
company keeps its input and output data. Some companies store these
documents in a database. The storage component ensures the organization,
security and accessibility of every document for later use. 
 Outputs: are documents the system generates once it completes processing
all inputs, such as receipts the company stores in its records. These
documents can help validate a sale or transaction and provide important
reference information for tax and other official purposes.

TRANSACTION PROCESSING SYSTEM FEATURES.

There are several features involved in a good transaction processing system. Some
of these features are:

 Performance: concept behind the use of transaction processing system is to

efficiently generate timely results for transactions. Effectiveness is based on
the number of transactions they can process at a particular time.
 Continuous availability: the transaction processing system should be a
very stable and reliable system that must not crash easily. Disruption of TPS
in an organization can lead to work disturbance and financial loss.
 Data integrity: the transaction processing system must maintain the same
method for all transactions processed, the system must be designed to
effectively protect data and overcome any hardware/ software issues.

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 Ease of use: the transaction processing system should be user-friendly in
order to encourage the use and also decrease errors from inputting data. It
should be structured in such a way that it makes it easy to understand as well
as guarding users against making errors during data-entry.
 Modular growth: the transaction processing system hardware and software
components should be able to be upgraded individually without requiring a
complete overhaul.
 Controlled processing: only authorized personnel, staff members, or
employees should be able to access the system at a time.

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 2. HOW AI IS CONTRIBUTING TO INFORMATION SYSTEM.

An information system is a combination of software, hardware, and

telecommunication networks to collect useful data, especially in an organisation.
Many businesses use information technology to complete and manage their
operations, interact with their consumers, and stay ahead of their competition. Some
companies today are completely built on information technology, like eBay, Amazon,
Alibaba, and Google.

AI aims at building intelligent systems that are capable of learning, reasoning,

adapting, and performing tasks similar to humans. And the information technology
systems are concerned with capturing, storing, analysing, and evaluating data to
communicate the best output as a piece of information.

An Iinformation system stores confidential information about the public,

governments, private & public organizations, etc., and this data should be secured
all the time. Building and developing a secure system is an utmost priority for an
information system. And the AI system can accomplish these challenges by
developing an intelligent system that identifies threats and data breaches, and also
provides precautions and solutions at the earliest to solve security-related issues.

The base of building any system is running an efficient and bug-free code. AI
systems are built to enhance overall productivity. An AI system uses a series of
algorithms that can help programmers in writing better code or overcoming software
bugs. AI system suggests a pre-designed set of algorithms for developers based on

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their performance to optimize the development time through detecting and
eliminating software bugs
An AI system integrated with deep learning networks aims at automating the
backends process to reduce time and cost. An AI programmed algorithms gradually
learn from their mistakes while performing tasks and automatically optimize the code
for better functioning
Artificial Intelligence also uses a series of algorithms that can be applied directly to
help programmers when it comes to detecting and overcoming software bugs, as
well as when it comes to writing code. Some forms of Artificial Intelligence have
been developed to provide suggestions when it comes to coding, which, in turn,
helped increase efficiency, productivity, and provide a clean and bug-free code for
developers. By looking at the structure of the code, the AI system will be able to
provide useful suggestions, not only improving the overall productivity but also help
cut on downtime during the production process.

Quite often, the hosting server will be bombarded by millions of requests on a daily
basis. Whenever this happens, the server needs to open web pages that are being
requested by users. Because of the constant flow of requests, some servers may
become unresponsive and end up slowing down over the long term. AI can help
optimize the host service so as to improve customer service and enhance the overall
operations. As IT needs will progress, AI will be increasingly used to integrate those
IT staffing demands and provide more seamless integration between the current
business and technological functions.

There are plenty of ways that organizations can integrate Artificial Intelligence into
their operations. One of the most common reasons is to optimize the company’s
processes. Say, for instance, AI can be used to send out automatic reminders to
departments, team members, and customers. It can also be used to monitor
network traffic, as well as handle a wide variety of mundane and repetitive tasks
that would, otherwise, eat up a lot of people’s time.

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CONCLUSION.
Integrating technology properly into your business can provide a major competitive
advantage. However, to properly integrate technology, we must first understand
what technology can and can’t do. Most businesses use technology to enhance
communication–information systems.
An information system is any system that is used to organize data which then is
disseminated to appropriate people within the organization. Information systems
don’t have to consist of computers, networks, and other digital technologies. This
book is an information system, so is a verbal conversation. Technology is a tool to
support business. It should always be viewed and used that way. Like any tool, it
must be used correctly to get desired results.

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REFERENCE.
Importance Of Artificial Intelligence (AI) In Information Technology (soulpageit.com)
The Future of IT and Artificial Intelligence - MyComputerCareer
AI-Based Information Systems | SpringerLink
What Is Artificial Intelligence? How AI Works With Information Technology? |
BETSOL
AI in IT. How Artificial Intelligence will Transform the IT industry (softengi.com)

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