Transaction processing system
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Transaction processing systems (TPS) perform routine business operations like processing customer orders, payments, and payroll. There are two types of TPS: batch processing, which accumulates transactions and processes them in batches, and online transaction processing (OLTP), which immediately processes each individual transaction in real-time. TPS ensure data integrity as transactions are completed, updating the relevant databases. The processing cycle involves inputting transaction data, maintaining databases, generating documents and reports, and allowing for inquiries. TPS provide operational support for core business functions.
Transaction processing system
- 1. Transaction Processing System, Characteristics and Processing Cycle Inam Ul-Haq Lecturer in Computer Science UE, Okara Campus [email protected], [email protected] MIS,UniversityofEducation,OkaraCampus 1
- 2. MIS,UniversityofEducation,OkaraCampus 2 Transactions • Transactions… • Basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, and payroll checks in an organization • A business activity between seller and buy to exchange an asset for payment. • Transaction processing systems (TPS) • Perform routine operations and serve as a foundation for other systems • OR • TPS is an information processing system for all business transactions involving collection, modification and retrieval of transaction data • A Transaction MIS
- 3. MIS,UniversityofEducation,Okara Campus 3 Batch vs. On-Line Transaction Processing • Two types of TPS: • Batch processing • A system whereby business transactions are accumulated over a period of time and prepared for processing as a single unit or batch • Manufacturing products, supply chain, salaries • On-line transaction processing (OLTP) • A system whereby each transaction is processed immediately, without the delay of accumulating transactions into a batch • Real-time transaction • Mostly in Online shopping • Uses PCI cards(Payment Card Industry: MasterCard, Visa, Maestro, American Express, Discover, ) • Paypal or WorldPay, WePay, eWay, ICEPAY,
- 4. MIS,UniversityofEducation,OkaraCampus 4 Batch vs. On-Line Transaction Processing (Online TPS)
- 5. MIS,UniversityofEducation,OkaraCampus 5 Batch vs. On-Line Transaction Processing (Batch Processing)
- 6. MIS,UniversityofEducation,OkaraCampus 6 Functions of TPS • Input Functions • Place an order for LUNCH • Processing Functions • Pizza is being prepared and served • Output Functions • Go to counter for payment, show discount cards, get invoice
- 7. Characteristics of TPS • Performance • Rapid Processing : customers can’t wait for TPS to respond. • Reliability: Breakdown will disrupt or stop business • E.g.Banking, Financial, Stocks, Airline reservations • Consistency: All parties must agree on facts of exchange • Atomicity: All operations fail or succeed • Data Integrity • TPS is primarily concerned with data integrity • Efficiency • Paperless Transactions • Reduce manual data entry (errors) • Speed up transaction process • Elimination of redundant steps MIS,UniversityofEducation,OkaraCampus 7
- 8. Objectives of TPS MIS,UniversityofEducation,OkaraCampus 8 • Ensure data and information integrity and accuracy • Produce timely documents and reports • Increase labor efficiency • Help provide increased and enhanced service • Help build and maintain customer loyalty • Achieve competitive advantage
- 9. Processing Cycle Data Entry • Collecting and capturing transactions • No longer manual: • Old technologies Bar Codes, Magnetic Strips (credit cards) • New technologies RFID, Smart Cards, MIS,UniversityofEducation,OkaraCampus 9
- 10. Corporate databases of internal data Databases of external data Databases of valid transactions Operational Databases (CRM) Transaction processing systems MIS Decision support systems Executive support systems Expert systems Business transactions Input and error list Drill-down reports Exception reports Demand reports Key-indicator reports Scheduled reports Employees Corporate intranet Application databases UniversityofEducationOkaraCampus 10 App databases Ebay.com, photo.net uses Oracle Facebook.com built over MySQL Schematic View (Cont.)
- 11. Processing Cycle Database Maintenance • TPS helps ensure the databases are up-to-date and correct. • Multiple databases (internal & external) • A single purchase • decreases quantity – Inventory Database • decrease credit – Credit Card Database • increase sales – Sales Database MIS,UniversityofEducation,OkaraCampus 11
- 12. Processing Cycle Document/Report Generation • Examples • purchase orders • pay checks • sales receipts • invoices • bank statements An MIS also generates reports, but TPS reports are operational (no analysis). MIS,UniversityofEducation,OkaraCampus 12
- 13. Processing Cycle Inquiry Processing • Examples • when was a purchase made • does a customer have any credits on their account • was an item scheduled for delivery • was a package signed for An MIS also allows for inquiries, but the information available is summarized (or aggregated), i.e., What are the total sales for a whole department? What is the best selling product? MIS,UniversityofEducation,OkaraCampus 13
- 15. Transaction Processing System • An Order Entry System affects • accounting data • inventory data • customer data • financial data • invoicing data • Enhanced Feedback: • Inventory is updated at the point of ordering, not at the point of fulfillment. Eliminates surprise backorders (out-of-stock products). MIS,UniversityofEducation,OkaraCampus 15