Transaction processing systems

A Transaction Processing System or Transaction Processing Monitor is a set of

information which process the data transaction in database system that monitors
transaction programs (a special kind of program). The essence of a transaction program
is that it manages data that must be left in a consistent state. E.g. if an electronic payment
is made, the amount must be either both withdrawn from one account and added to the
other, or none at all. In case of a failure preventing transaction completion, the partially
executed transaction must be 'rolled back' by the TPS. While this type of integrity must
be provided also for batch transaction processing, it is particularly important for online
processing: if e.g. an airline seat reservation system is accessed by multiple operators,
after an empty seat inquiry, the seat reservation data must be locked until the reservation
is made, otherwise another user may get the impression a seat is still free while it is
actually being booked at the time. Without proper transaction monitoring, double
bookings may occur. Other transaction monitor functions include deadlock detection and
resolution (deadlocks may be inevitable in certain cases of cross-dependence on data),
and transaction logging (in 'journals') for 'forward recovery' in case of massive failures
These are the basic system that serve the operational level of organization. It is a
computerized system that performs and record the daily routine transaction necessary to
the business such as sales order entry, payroll etc.

Contrasted with batch processing

Batch processing is not transaction processing. Batch processing involves processing
several transactions at the same time, and the results of each transaction are not
immediately available when the transaction is being entered;[1] there is a time delay

Real-time and batch processing

There are a number of differences between real-time and batch processing. These are
outlined below:
Each transaction in real-time processing is unique. It is not part of a group of
transactions, even though those transactions are processed in the same manner.
Transactions in real-time processing are stand-alone both in the entry to the system and
also in the handling of output.
Real-time processing requires the master file to be available more often for updating and
reference than batch processing. The database is not accessible all of the time for batch
processing.
Real-time processing has fewer errors than batch processing, as transaction data is
validated and entered immediately. With batch processing, the data is organised and
stored before the master file is updated. Errors can occur during these steps.
Infrequent errors may occur in real-time processing; however, they are often tolerated. It
is not practical to shut down the system for infrequent errors.

More computer operators are required in real-time processing, as the operations are not
centralised. It is more difficult to maintain a real-time processing system than a batch
processing system.
At the operational level, tasks, resources, and goals are predefined and highly structured.
The decision is made by the lover level supervisor according to the predefined criteria.
There are five types of TPS.
1.
Sales/ Marketing system
2.
production system
3.
finance/ accounting system
4.
Human Resources system
5.
other types (university, college etc.)
The major functions and their application of the TPS are given below
TPS
Sales/Marketing
Production
Finance/ a/cing
system
Human resources
Other types

Function
Sales mgmt, prices, new
product, marketing etc.
Scheduling, purchasing,
operation etc.
Budgeting , billing etc.

Application
Sales order IS, Market research,
Pricing system
Purchase order control, quality
control etc.
General ledger, funds mgmt etc.

Personnel record, benefit etc.

Admission, Grade etc.

Payroll, emp. Record etc.

Registration, transcription etc.

There are two main feature of TPS.

1.
Many TPS span the boundary between the organization and the
environment. They connect consumer to the firms warehouse and mgmt.
If TPS do not work then the org fails either to receive the input from the
environment or deliver output.(goods).
2.
TPS are the major producers of information for the other types of system.
For example Payroll system supplies the data the general ledger which is
responsible for maintain the companys input and expenses. So it is the
only system from where the manager can obtain the current record of the
org. performance.
Besides these features there are several other features of TPS.

Rapid response
Fast performance with a rapid response time is critical. Businesses cannot afford to have
customers waiting for a TPS to respond, the turnaround time from the input of the
transaction to the production for the output must be a few seconds or less.

Reliability
Many organizations rely heavily on their TPS; a breakdown will disrupt operations or
even stop the business. For a TPS to be effective its failure rate must be very low. If a
TPS does fail, then quick and accurate recovery must be possible. This makes well
designed backup and recovery procedures essential.

Inflexibility
A TPS wants every transaction to be processed in the same way regardless of the user, the
customer or the time for day. If a TPS were flexible, there would be too many
opportunities for non-standard operations, for example, a commercial airline needs to
consistently accept airline reservations from a range of travel agents, accepting different
transactions data from different travel agents would be a problem.

Controlled processing
The processing in a TPS must support an organization's operations. For example if an
organization allocates roles and responsibilities to particular employees, then the TPS
should enforce and maintain this requirement.

Note
In a TPS, there are 5 different types of files. The TPS uses the files to store and organize
its transaction data:

Master file: Contains information about an organizations business situation.

Most transactions and databases are stored in the master file.
Transaction file: It is the collection of transaction records. It helps to update the
master file and also serves as audit trails and transaction history.
Report file: Contains data that has been formatted for presentation to a user.
Work file: Temporary files in the system used during the processing.
Program file: Contains the instructions for the processing of data.

Decision Support system

A decision support system (DSS) is a computer program application that analyzes
business data and presents it so that users can make business decisions more easily. It is
an "informational application" (to distinguish it from an "operational application" that
collects the data in the course of normal business operation).Typical information that a
decision support application might gather and present would be:
Comparative sales figures between one week and the next
Projected revenue figures based on new product sales assumptions
The consequences of different decision alternatives, given past experience in a
context that is described
A decision support system may present information graphically and may include an
expert system or artificial intelligence (AI). It may be aimed at business executives or
some other group of knowledge workers.
Types of Decision
There are mainly two types of system.
1.
Unprogrammed or unstructured
These are decision in which the decision maker must provide judgment ,
evaluation and insights into the problem definition. These decision are

2.

novel, important and nonroutine and there is no well understood procedure

to create them.
Prgrorammed or Structured
In Contrast , these are the repetitive, routine, and involve a definite
procedure for handling so that they do not have to treated each time as if
they are new.

Besides the above two, some decision and semi-structured in which a part of problem has
the clear cut answer provided by the accepted procedure.
Any system that support decision called decision support system (DSS). It serves to the
mgmt level of org. DSS supports the decision in vastly different ways and DSS are a class
of system that support decision in a unique way. DSS have to be responsive enough to
run several time a day in order to change the condition. Because DSS use internal
information from TPS, they often takes the information from the external sources.
Characteristics of DSS
1.
it offer offers user flexibility, adaptability, and a quick response.
2.
It allow users to initiate and control the I/O
3.
It operates with little or no assistance from professional programmers.
4.
It provides support for decision and problem whose solution are not
specified in advance.
5.
It uses the sophisticated analysis and modeling goods.
Mgmt always requires powerful and interactive DSS with which they can control and run
themselves, with as many changes in data and models as they needed and with little
interference of data processing professionals.
DSS components may be classified as:
1.
2.
3.
4.

Inputs: Factors, numbers, and characteristics to analyze

User Knowledge and Expertise: Inputs requiring manual analysis by the user
Outputs: Transformed data from which DSS "decisions" are generated
Decisions: Results generated by the DSS based on user criteria

Benefits of DSS
1. Improves personal efficiency
2. Expedites problem solving (speed up the progress of problems solving in an
organization)
3. Facilitates interpersonal communication
4. Promotes learning or training
5. Increases organizational control
6. Generates new evidence in support of a decision
7. Creates a competitive advantage over competition
8. Encourages exploration and discovery on the part of the decision maker
9. Reveals new approaches to thinking about the problem space

10. Helps automate the managerial processes.

Office Automation System
Office automation refers to the varied computer machinery and software used to
digitally create, collect, store, manipulate, and relay office information needed for
accomplishing basic tasks and goals. Raw data storage, electronic transfer, and the
management of electronic business information comprise the basic activities of an office
automation system. Office automation helps in optimizing or automating existing office
procedures.
The backbone of office automation is a LAN, which allows users to transmit data, mail
and even voice across the network. All office functions, including dictation, typing, filing,
copying, fax, Telex, microfilm and records management, telephone and telephone
switchboard operations, fall into this category. Office automation was a popular term in
the 1970s and 1980s as the desktop computer exploded onto the scen

It Works with the knowledge work system. It primarily aid data workers. (The workers
like doctor, scientists, engineer etc are called knowledger worker whose jobs to create
new information and knowledge)
Data worker typically have less formal, advanced educational degree and tend to process
rather then create information.They works as accountants, secretaries, clerks etc. OAS are
information technology applications designed to increase the productivity of data workers
in the office by supporting the coordination and communication activities . OAS
communicates with the customers , suppliers etc and serve as a clearing house and
knowledge.
OAS handles and manage the documents through the word processing , desktop
publishing and digital filing, scheduling them through the electronic calendar and
communicate through the e-mail, voice mail, video conferencing etc.
Work processing : It refers to the s/w and h/w that creates, edits, formats, and print
documents. It represents the single most common application of IT to office work.
Desktop Publishing :It produces professional publishing quality documents by combining output from
word processing s/w with desing elements , graphics and special layout features.

Executive Support system