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Transaction Processing System

The document defines and describes transaction processing systems (TPS). It explains that a TPS handles the processing and tracking of transactions within an organization. There are two main types: batch transaction processing, which collects and later processes data in batches; and real-time transaction processing, which immediately processes individual transactions. Examples of batch TPS include cheque clearance and bill generation, while real-time examples are reservation systems and point-of-sale terminals. A TPS is the foundational information system that provides information to external stakeholders like customers and suppliers.

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64 views20 pages

Transaction Processing System

The document defines and describes transaction processing systems (TPS). It explains that a TPS handles the processing and tracking of transactions within an organization. There are two main types: batch transaction processing, which collects and later processes data in batches; and real-time transaction processing, which immediately processes individual transactions. Examples of batch TPS include cheque clearance and bill generation, while real-time examples are reservation systems and point-of-sale terminals. A TPS is the foundational information system that provides information to external stakeholders like customers and suppliers.

Uploaded by

Gallena
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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TRANSACTION

PROCESSING SYSTEM
TPS
 A basic business system that handles the
processing and tracking of transactions
occurring within an organization.
 A transaction is a complete event, which
may occur as a series of many steps,
such as taking an order from a customer.
 Helps a company add value to its
products and services.
Types of TPS
 Batch transaction processing (BTP)
- information that is gathered and stored but not
processed immediately
- also known as “later processing”

 Real time transaction processing (RTTP)


- transaction which is processed immediately and
the operator has access to on-line database
- also known as “right now” processing
BATCH TRANSACTION PROCESSING
- collects the transaction data as a group and
processes it later after time delay as batches of
identical data
- processed when convenient or economical to do so
- collected and stored offline using magnetic tape
or paper
- carried out in large organizations using
mainframe or midrange computers
Disadvantages of BTP
 Transactions must wait for processing as
schedule is predetermined

 Errors cannot be corrected during


processing

 Sorting transaction data is expensive and


time consuming
Examples of BTP Systems

 CHEQUE CLEARANCE

Cheque: a written order asking the bank to pay an amount of


money to a particular person.

- when one is issued to a person they deposit it into a bank account


yet the money cannot be withdrawn until the cheque is cleared

- this involves checking that the cheque writer has enough money in
their account to cover it usually taking 3 working days in which
cheques are cleared in a group during a quiet period of the day
 BILL GENERATION

- organizations develop a bill or invoice of services or


products supplied to a customer

- usually generate a group of bills at a scheduled time as


this enables the user to effectively manage time and
results in less disruption to main database
 CREDIT CARD TRANSACTIONS

- in a credit slip system the retailer sends credit slips to


the bank as a group

- in POS terminal sales the transactions are stored for


processing later. The customers may view their credit
card transactions a real-time but the actual updating is
batch.
REAL TIME TRANSACTION
PROCESSING
- RTTP is the immediate processing of data.
- provides instant confirmation yet requires access to
online database
- involves using terminal or workstation to enter data and
display results and a large number of users to
simultaneously perform transactions
- uses computer network to link terminals to mainframe
computer and database
- for a TPS to be classified real-time the response time
delay must be acceptable for that application
Main Disadvantage of RTTP
 Main disadvantage of RTTP is the hardware and
software costs exceed batch.

Two Main Concerns


 Concurrency - ensures two users cannot change the
same data at the same time. One must wait until the
other is finished.

 Atomicity - ensures all the steps involved in a


transaction are completed successfully as a group. If
one step fails no other step should be completed.
Examples of RTTP Systems
 RESERVATION SYSTEMS

- involve setting aside a service or product for the


customer to use at a future time.

- commonly used for traveling such as in flight or train


bookings and motel reservations.

- require an acceptable response time because


transactions are made in presence of customers.
 POS TERMINALS

- are used by retail stores to sell goods and services.

- send inventory data to a central computer


(mainframe or midrange) when sale is made which
does the processing for entire chain. To accomplish
this the data is converted to a form that is easily
transmitted through a communication system. If the
POS terminal immediately processes the transaction
it minimizes the cost of batch handling.

- the POS terminal can provide price and any other


relevant information about the product.
 LIBRARY LOAN SYSTEM

- is used to keep track of items borrowed from the


library.

- When a book is borrowed the librarian scans the


barcode on the person’s membership card and the
book. This information and the date are immediately
recorded on the library database. All in real-time.
TPS
 The only information system that has the
responsibility to meet information needs
outside the firm.
 It has the responsibility of furnishing
information to each environmental element
except COMPETITORS.
Why provide information to the
environment?
 CUSTOMERS Invoices and
statements

 SUPPLIERS PURCHASE ORDERS

 OWNERS/ Data, annual reports


STOCKHOLDERS
PUTTING THE TPS IN PERSPECTIVE

•First application to be computerized


•The best understood application
•Serves as the foundation for all other
applications
•Foundation exists in the form of the
DATABASE, which documents
everything that the firm does, including
interfacing with the environment.

 tps
Transaction Processing Systems
TPS IN DISTRIBUTION FIRMS
(A context diagram of a distribution system)
A Figure 1 (explosion) diagram
END OF SLIDE

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