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Mah Mba PPT02

A transaction processing system (TPS) is designed to process routine business transactions in large volumes to automate repetitive operations and directly support core business operations. The key characteristics of a TPS include processing large amounts of structured data on a regular basis with high speed and accuracy. A TPS uses either a batch processing model, which accumulates and processes transaction data periodically, or an online processing model, which immediately processes individual transactions. Common TPS applications are order processing, payroll, inventory management, and student registration.

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Mohamed Mandour
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22 views11 pages

Mah Mba PPT02

A transaction processing system (TPS) is designed to process routine business transactions in large volumes to automate repetitive operations and directly support core business operations. The key characteristics of a TPS include processing large amounts of structured data on a regular basis with high speed and accuracy. A TPS uses either a batch processing model, which accumulates and processes transaction data periodically, or an online processing model, which immediately processes individual transactions. Common TPS applications are order processing, payroll, inventory management, and student registration.

Uploaded by

Mohamed Mandour
Copyright
© © All Rights Reserved
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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Chapter 2

Transaction Processing
Systems
Transaction Processing Systems

1-1
Learning Objectives

• What is a TPS?
• Characteristics of TPS
• a Transaction Processing Model
• Batch Processing vs. On-line Processing
• TPS Applications
What is a TPS?

• TPS is a type of IS that collect, store, modify,


and retrieve the transactions of an
organization.
• TPS designed to process routine business
transactions
• seeks time- and cost-efficiency by
automating repetitive operations in large
volumes
• Directly support Business Operations.
What is a TPS?
• Must be designed in conjunction with the
organization’s procedures.
• Main information processes: collecting and
storage.
• e.g,, airline reservation systems, bank’s
account processing systems, and student
registration system.
Value of TPS
• Efficiency
– Paperless Transactions
– Reduce manual data entry (errors)
– Speed up transaction process
– Elimination of redundant steps
The Major Characteristics of TPS
• Large amounts of data are processed.
• The sources of data are mostly internal, and the output is intended
mainly for an internal audience.
• The TPS processes information on a regular basis: daily, weekly,
monthly, etc.
• Large storage (database) capacity is required.
• High processing speed is needed due to the high volume.
• TPS basically monitors and collects past data.
• Input and output data are structured (i.e., standardized).
• Low computation complexity is usually evident in TPS.
• A high level of accuracy, data integrity, and security is needed.
• High reliability is required.
A Transaction Processing Model

Data
DataInput
Input Data
DataProcessing
Processing Output
OutputGeneration
Generation

Data
DataStorage
Storage
Batch vs. On-Line
Batch Processing On-Line Processing
• transaction data are • also called online
accumulated • immediately processed
• processed periodically • Syncronization issues
• used to be necessary • What if two people order
because of synchronization the same product at the
problems same extact time, but
there is only one
product
left?
Batch Processing

Transaction Trans. Data Documents/


Data File Processing Reports

New
Master
Old File
Master
File
On-line Processing

Transaction
Data

On-line
Documents/
Data
Transaction Reports
Processing
Data

Inquiries/
Reponses
Transaction
Data
TPS Applications

• Order Processing
• Purchasing
• Accounts Receivables & Accounts
Payables
• Receiving & Shipping
• Inventory on Hand
• Payroll
• Student registration

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