TRANSACTION PROCESSING SYSTEMPRESENTED BY MAHENDRA MEHRA

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Information Technology is any combination of information technology and people's activities that support

1. Operations2. Management 3. Decision Making

INFORMATION SYSTEM

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KINDS OF INFORMATION SYSTEM

Strategic level

Management level

Knowledge level

Operational level

SALES & MARKETING MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCES

OPERATIONAL MANAGERS

KNOWLEDGE & DATA WORKERS

MIDDLE MANAGERS

SENIOR MANAGERS

TPS

KMS

DSS

ESS

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TRANSACTION PROCESSING SYSTEM

Computerized system that performs and records the daily routine transactions necessary to conduct the business; these systems serve the operational level of the organization

EXAMPLE: payroll, accounts payable

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Database update:• customer orders• inventory• purchase orders• customers• suppliers

TRANSACTION PROCESSING CYCLE

Internally generatedtransactions:• shipped orders• purchase orders• employee time cardsExternally generated transactions:• customer orders• vendor invoices• customer payments

Data input

Processing

DATABASE

Management reports

Documents:• pick list• cheque to vendors• receiving notices• pay cheques

Operational reports:• finished product

inventory status• raw materials; packing

materials; spare parts; inventory status

QUERY

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PAYROLL SYSTEM

Te general ledger: wages and salaries

Payroll master

fileManagement

reportsPayroll System

Online queries

Employee data from various departments

Government document

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Rapid Processing

Reliability

Standardisation

Controlled Access

TPS CHARACTERISTIC :

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• All primary key values are unique (e.g., no two employee records have the same employee number).

• The database has referential integrity, meaning that records reference only objects that exist (e.g., the Part record and Customer record that are referenced by an Order record really exist).

• Certain data values are in a particular range (e.g., age is less than 120 and social security number is not null).

TRANSACTIONS PROCESSING QUALIFIERS

ATOMICITY

CONSISTENCY

ISOLATION

DURABILITY

a transaction needs to be atomic (or all-or-nothing), meaning that it executes completely or not at all. There must not be any possibility that only part of a transaction program is executed.

An execution is serializable (meaning isolated) if its effect is the same as running the transactions serially, one after the next, in sequence, with no overlap in executing any two of them. This has the same effect as running the transactions one at a time.

Durability means that when a transaction completes executing, all its updates are stored in stable storage; that is, storage that will survive the failure of power or the operating system. Even if the transaction program fails, or the operating system fails, once the transaction has committed, its results are durably stored on stable storage and can be found there after the system recovers from the failure.

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TYPES OF TRANSACTIONS PROCESSING SYSTEM

• Real time Processing

• Batch processing

Batch processing is a resource-saving transaction type that stores data forprocessing at pre-defined times. Batch processing is useful for enterprises that need to process large amounts of data using limited resources.

Examples of batch processing include: credit card transactions

In many circumstances the primary factor is speed. Online transaction processing systems are computer systems that take transaction related information that is time sensitive and immediately process it and keep it current consistently. This type of online transaction processing system is primarily used within online banking, inventory control, scheduling for manufacturing companies, and ticket reservations.

For example: Booking system

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Process data generated by and about transactions Maintain a high degree of accuracy 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

OBJECTIVE OF TPS

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COMPARISON OF TPS WITH OTHER SYSTEMS

SPECIAL

INFORMATION SYSTEM

MIS/DSS

TPSDATA

INFORMATION

ROUTINE

MORE

LESS

DECISION SUPPORT

MORE

LESS

INPUT and OUTPUT

MORE

LESS

COMPLEXITYOF PROCESSING AND ANALYSIS

MORE

LESS

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EXAM QUESTION’S

Is Transaction processing system must for MIS Implementation? Explain with example Transaction, Batch transaction processing system.(May 2009)

Explain the Transaction Processing Cycle in detail (May 2010, May 2008, Dec 2007)

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THANK YOU!

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BATCH PROCESSING An example of batch

processing is the way that credit card companies process billing. The customer does not receive a bill for each separate credit card purchase but one monthly bill for all of that month’s purchases.

The bill is created through batch processing, where all of the data are collected and held until the bill is processed as a batch at the end of the billing cycle.

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REAL TIME PROCESSING

In transaction processing data is entered and processed “straight away”

However, there may be a short delay as the system must COMPLETE each transaction BEFORE starting the next one

Sometimes called interactive or pseudo real-time processing i.e. it “looks” like stuff is happening instantly

A common use of interactive processing is for booking systems

Remember, each transaction must be completed before the next one begins