Lecture 6

An overview of
Transaction Processing
Systems

Information Management

CCIT4057
 10 cashier
Transaction Processing Systems me C
(Operational level) or not
cl money
• A transaction is any business-related exchange e.g.
payments to employees, sales to customers, payments
to suppliers
• Transaction processing system (TPS) - an organized
collection of people, procedures, software, databases,
and devices used to record wacompleted
_hn 1 business
transactions
I_n_l
• To understand a TPS is to understand basic business
operations and functions
t_ylleepfrang otbnsme Houabutheslopact k

nm Tpsworh

2
Transaction Processing Systems 品品
(Operational level) 品品
C
• Bottom managers (e.g. a manager at a supermarket)
must identify, collect and register all transactions and
events when sales are made, and when goods are
shipped
• Financial data on account receivables/payables,
1
payrolls, cash receipts must be recorded as they occur
1
U How mucnfsoldoufax
salay hou much receive c
L Supples
paytorit

3
TPS (operational IS)

• TPS supports the most fundamental, basic business

operations of the organization; as it records every detail
of each transaction
• TPS can be manual or automated
decoulay
• TPS is the earliest use of computers to reduce costs by
automating routine, repetitive, labour-intensive
business procedures
• E.g. ATMs, supermarket’s check-out 17Stoelaledolcadeichage
cashiers, use of
smart card technology in transportation, fast food fr a
stores etc. ride
Data baseicoupa maenreiud d
adjuctrent
lieeprecoid
luhdfiu
date
4
A Payroll Transaction Processing System

5
Benefits of automated TPS

• Reduced cost: less labour/personnel

• Increased speed (operational efficiency): processing is
faster
7
• Increased accuracy: fewer typing mistakes, error-free
input and processing
readingmachine
c
• Increased quality customer service: faster response to
customer’s queries or needs, 24-hour access to database
information
• Increased data for decision-making: serve as the
foundation for DSS → as TPS collects & stores all
transactional data into the databases

Read
TPSSYHe asmavbet reseauhde.la

6
 all ccedtcat
Traditional Transaction Processing Methods aecdleded
naouldunb
by Computers pleapprolalofcrechecaltaochsguuleonae
Dining
see tlausueh
• Batch processing – processing of business transactions
are accumulated over a period of time and prepared for
processing later as a single unit
• Some time delay between the occurrence of transaction and the
actual processing of the transactions
• Previous slide has some e.g. of batch processing
• Bread baking Dlead wouldtheymake baeud
Uh X tug
• Transaction of credit cards
Mdale at
• Inventory processing
• Report generation the morning
• Mobile phone bill
• On-line transaction processing (OLTP) - processing of
each transaction istǎtnltkend
done immediately and the affected
1

records are updated

Chayeyu physulals
aacehuue
of month tinshedtunsactn 7
uuhl a
end ofmonth

shele limmodne.gg
Example of on-line transaction processing
6T sellytineglolllshae deal
puheneeruehae
• Stock market exchange: transactions of buying/selling
of stocks are processed instantly
• Airline reservation systems, especially cheap or ǎiein
budget airline tickets which are usually sold on
airline’s website pue. n
• now most of the airlines are doing the same hehe
a
huie
• Gambling: soccer or horse racing bets can be placed heat
on appropriate websites and processed immediately ud
• Suitable for more urgent transactions that require data
updated quickly

8
Batch versus On-Line Processing

9
Common Data Processing Activities in all TPSs

CO
master

Stctenent
10
Data collection in TPS

• Captures and gathers all necessary data to complete

transactions
• Data must be recorded at its source accurately, in a
timely fashion and automatically with minimal manual
effort
e o
• Automated input devices e.g. barcode scanners at
libraries, point-of-sale cashiers at supermarkets

Data

Anile
pos

11
Data editing in TPSs

• Detects for any errors in input data egabciurleddnameac

ploblen
• Performs validity and completeness checking in input
data
• E.g. quantity and cost data must be in numeric
• E.g. names must be alphabetic

12
Data correction in TPSs
blpbIP screen
ecurinvallylescan
• If input data is invalid, TPS should give appropriate code
error messages so that corresponding corrections can
be made
• Data correction involves reentering mis-keyed or mis-
scanned data

13
Data Manipulation in TPSs
calcclee
Suhtotd
• The actual processing inside the TPS such as kerlaslawel
data
calculations and data transformations related to the
transactions
• E.g. classifying data, sorting data in categories,
performing calculations, summarizing results

clusng
drink howmay leleae
a needful
generated

Bujghabit

14
Data Storage in TPSs

• Update one or more databases with new transactional

data
• Once the update process is complete, this data can be
further processed and used by other types of
information systems
pyrol
• e.g. MIS
• e.g. DSS for tactical decision making or strategic planning

dome
prunite

15
Document or report production in TPSs
Accoueleceicw pagace
• TPSs produce important business documents about the
transactions
• Documents can be hardcopy or displayed on computer
screens
houmghus enplre nuk
• e.g. paychecks of a payroll system
• e.g. receipts of an order processing system
• e.g. outstanding balance report for invoices for an accounts
receivable TPS
d
Sell reuck to castsn

to 500 pile

fun ipsgeneneleporc
how much

16
Characteristics of TPS

• Repetitive – transactions repeat daily, weekly, or monthly

• Predictable – information always has expected results
• e.g. customers are billed 2
0
for what they purchased in a month
• Emphasismadesaskgu
on the past pyae thlmufs
information describes past activities
• e.g. payroll output describes employee’s past work pay
• Detailed nature - output information is very detailed
• e.g. paychecks have details on the worksheet of each employee’s
gross and net pay.
• Structured form – input and output data format are
structured
fill
out form log in leg out
• e.g. data on timecards are carefully formatted in identical fashion
• Great accuracy – input and output data to/from TPS must
be accurate and carefully checked No euor

DSS subjective 17
 sourced DSJ
TPS i
d
Pvedut