Transaction Processing System Presentation by Angelika Hamann TRANSACTION

Transaction Processing System Presentation by: Angelika Hamann

TRANSACTION PROCESSING SYSTEMS TPS is a type of information system. It collects, stores, modifies and retrieves the transactions of an organisation. TPSs are operational level systems at the bottom of the pyramid, usually operated directly by shop floor workers or front-line staff.

Examples of TPS: order entry systems, payroll systems, and ticket reservation systems. These systems help any company to conduct operations and keep track of activities. For instance, a ticket reservation system displays a message on the terminal indicating seats sold out to people and also prints the tickets.

Purpose of TPS: To keep records about the state of the organization, To process transactions that affect the records. To produce output that reports on transactions that have occurred.

Characteristics of TPS: Collects, stores, modifies and retrieves transactions of an organisation. Directly supports business operations. Performs routines, repetitive tasks- it is mostly used by lower level managers to make operational decisions. Transactions can be recorded in batch mode or online mode. Batch mode- Files are updated Online mode- Each transaction is recorded as it occurs

Features of TPS: Rapid Response- Fast performance with rapid results. Reliability- Well designed backup and recovery with a low failure rate. Inflexibility- Treat every organisation equally, it may be used many times each day which means it has to be precised and inflexible. Controlled processing- Maintain specific requirements for the roles and responsibilities of different employees.

Types of TPS Online system: It involves a direct connection between operator and TPS program. They provide immediate results. Eg: An order received by telephone call, it is processed at that moment and the results are produced.

Types of TPS Batch processing: Transactions are grouped together and processed as a unit. Eg: A cheque processing system in a bank, all cheques received on a particular day are grouped together. They are then sorted by account number and processed in a batch.