Transaction Processing Systems

TPS

Millions of business transactions occur in every organization every day. Examples

a product produced, a service sold, a person hired, a payroll check produced

TPS

TPSs monitor, collect, store, and process data generated from all business transactions This data is input to the organizations database, also are input to the other information systems like DSS, MIS, ESS

Characteristics of TPS

Efficiently handle high volume Avoid errors Handle large variations in volume Avoid downtime Never lose results Maintain privacy and security.

How TPS manage data

Transaction Processing System Organizations Database MIS

Business event or transaction

DSS BI EIS ES Detailed Reports

Scanning Device

How TPS Works

Data are collected by people or sensors and are entered into the computer via any input device

Systems processes data in one of two basic ways:

How TPS Works?

Batch processing

Online processing

The firm collects data from transaction as they occur Placing those transactions in a group or batches The system then processes the batches periodically ( for example , every night)

(OLTP) Online transaction processing Business transactions are processed online as soon as they occur All in real time

TPS Cycle

Use a five-stage cycle of data entry

1
Data Entry

2
Transaction Processing Batch Online/Realtime

4
Document and Report Generatio n

4
Inquiry Processin g

Database Maintenance

Architecture of Transaction Processing System

As and when a business transaction takes place, source document describing the transaction is created This source document serves as an input for the tps from some external source These source documents can then be processed online or in batches Processing then gives the desired output

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Contd.

Information can be entered into a TPS one of the following three ways - Manual - Semi automated - Fully automated The processing that is done on the source document happens to be one of the following - Recording - Summarizing - Sorting - Updating - Merging
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Contd.

The output from TPS can serve one of the following purposes: - Counts and summary reports - Inputs to other information system - Feedback to system operator or customer The main objective of TPS is to automate repetitive information processing activities within organizations to increase speed and accuracy and to lower the cost of processing each transaction

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