Transaction Processing Systems

Transaction Processing Systems
These are information systems carry out the

seven processes with regards to the transactions
of an organisation.
A transaction occurs when goods and services are
exchanged for some form of payment.
See Text page 117 table 4.1 for an example.
ACID is the acronym for the four properties
Atomicity-the transaction starts and each step must

be completed or it will be undone.
Consistency-data is agreed upon, remains in a
consistent state and is accounted for.
Isolation-treats each transaction separately and
keeps data from each transaction separate.
Durability-the data should continue to exist.

characteristics of transaction processing systems
There are two types of TPS:
Batch processing and Real Time processing.

Batch Processing transactions is the processing as the
collection/storage of data at the time of the event with
actual updating of the database later when it is
scheduled or there is enough data.
An example may be the accounts which are not
able to be easily stored and updated due to the
amount and type of data used. Examples of this
may be a telephone account, which accumulates
over a period of time.

Batch processing : (compared to real time)

Advantages:
Control over time of processing;
Standardisation;
Reduced setup and processing costs
Disadvantages:
Errors corrected after the processing of data;
Time delay in gathering data, storing and bulk
processing;
Operational costs may increase;
Only identical data is processed in one batch.
Real time transaction processing as the immediate

processing of data with the database updated as
the transaction is being carried out.
An example may be the Bank ATM and POS
terminal, both of which have user input which
requires immediate feedback.

Real time transaction processing: (compared to batch)

Advantages
Transaction response time is quick if not immediate;
Data is processed as demanded;
Error correction can be immediate.
Disadvantages
Standardisation may not exist or may be more difficult;
Processing needs make control difficult;
System hardware and software is expensive;
Backup is critical incase of system crashing;
Security is critical incase of crashing or data security;
The possibility of data corruption requires backup.

Data validation is a process that ensures that the

correct type and valued data is input into a system.
There are two types involved in TPS:
1. Transaction Initiation-provides correct steps of
access. (verification)
2. Field Checking-ensures correct data type is
used by checking entered data by type required.
(comparison)

The significance of data validation in transaction

processing is that it will provide:
the transaction a way of processing the data;
the maintains that transaction data and
information is current, accurate and up to date;
required reports and documentation;
increased efficiency, resulting in improved
service;
a communicative process between provider
and client.

The historical significance of transaction processing

as the first type of information systems, was driven by
business. Business computerised manual processes
used such as collecting, recording and reporting.
Punch cards and tape drives suited batch processing.
Processing was carried out after hours mainly
concerned with payrolls.
Developments in technology providing greater speed
and lower costs allowed Real Time processing to be
developed alongside Batch Processing.

Transaction processing is easily computerised as it is

based on clear sets of rules followed by an operator in
equivalent manual systems.
Rules are set out and must be followed step by step to
be considered as a successful transaction.
Computerisation also is able to be set up in the same
way. A TPS needs therefore, to be based on detailed
specifications, dealing with the collection of data, in
which formats and matching the operation of the
organisation.

examples of transaction processing systems
The components of a transaction processing system, including:

1. users of the information system as belonging to the same
organisation that owns the transaction processing system
2. participants as the people who conduct the information
processing
3. people from the environment becoming participants in real
time systems as they directly enter transactions and perform
validation
Examples of real time transaction processing, including:
1. reservation systems; 2. point of sale terminal;3. library loans
Examples of batch processing, including:
1. clearing of presented cheques; 2. generation of bills;
3. systems that appear real time, computerising transactions as
they occur, but actual updating is processed in batch, such as
credit card transactions.

storing/retrieving in transaction processing systems
Storage of data in relational and flat-file databases in

digital form as it has the ability to manipulate,
store and retrieve along with process and display
with digital technology.
Data, is for large companies collected in batched
format
Retrieval of stored data to conduct further transaction is
usually warehoused.
Sequential, indexed sequential and hashed files
generally store the data in databases.

Sequential data storage are data records one after the

other in entry or key field order, header stores and field
order of each record in a data dictionary with a search
completed using either binary or linear.
Indexed sequential data storage are records stored in
any order and with a separate index file, keeping
matching key field items with the records position. This
is faster, but continual updates to index file requires two
files which must be maintained.
Hashed file storage will divide the disk space into
numbered locations, with key field. At the time that they
are divided by the total locations a remainder is provided
as storage location.
data warehousing is the collection of data

from a range of data sources.

transaction database for analysis-backup procedures, including:
Grandfather is the oldest backup, Father is the

middle backup, Son is the most recent backup
Incremental will only back up files that were
altered since the last full or partial backup. This
saves time as an entire data backup does not
occur.
Tape is a preferred medium, which is a slow
backup process, but is cheap and is portable.
This can be archived for many years.

transaction database for analysis- backup procedures, including:
Off-site storage is physically separated from

the main system. This is also more secure as if
the main system is damaged due to fire, the
data is safe.
partial backup, or differential backup does only
files that were altered since the last full
backup was completed.
Recovery testing will backup small subsets of

transaction database for analysis-backup procedures, including:
Sequential process will use tape rotation to

complete the backup procedure.
Specialised backup software permits
scheduling of unattended backup procedures,
reports and compression.

Updating is different for Real time processing and for Batch
processing
Real-time updating is suited to the direct

access to storage system. This system usually
has a RAID hard drives which are very reliable.
Data is entry updated onto a daily transaction
file and master file with Transaction data kept
online on a master file.
There is user interface with validation fields used
such as radio buttons and pull-down menus.

Updating is different for Real time processing and for Batch
processing
Batch updating is suited to the use of

sequential tape-based storage systems.
Used previously along with paper records,
magnetic tape, punched cards with an offline
master retained.
Record deletion was required and a complete
copy was made to a second tape, which was
slow.
There maybe a user interface but was not

other information processes in transaction processing systems
Collecting in transaction processing:
hardware, including:
- MICR is used by banks as a high speed and accurate
reader of the characters that are printed on a cheque
and deposit slips using ink that has magnetised
particles. This is an example of batch processing.
- ATM is a banking terminal, which customers are able to
access to carry out common banking transactions. This
is an example of real time processing.
- Barcode readers is a fixed or handheld device that
reads barcodes that hold details about product, price
and description. The bar code reader uses a lazer.

Collecting
data collection: MICR on cheques, barcodes,
ATM, screen-based collection
screen design: white space, grey shades,
standout colours for critical data, group related
data, use of buttons for selection, objects
alignment, minimal keying, logical order for
fields.
web form collection: screen design, submit and
clear entries button, frames for consistency,
resolution of users screen, 216 colours, crossplatform and browser version compatibility,
relating to both real-time or batch processing

Analysing The output of a TPS is often the

input to other information systems.
Management Information Systems (MIS) will
provide business managers factual details of
interest. These may include reports on
inventory, sales and orders
Decision Support Systems (DSSs) give people
particularly in business information that will
allow them to make decisions. Sales data,
future and demographic trends. Data mining in
particular comes into play here.

issues related to transaction processing systems
Changing nature of work and the effect on

participants, including:
the automation of jobs once performed by clerks
the bypassing of clerks by people in the environment
manual operations are becoming automated by
technology
work boundaries between users and
participants, are fuzzy
employer ability to monitor performance has
social implications
disappearance of repetitive tasks easily
accomplished by computer systems

bias in data collection:

Data needs to be collected fairly, this means without
bias. This word bias means that the data will not give
an accurate account of a situation or of a need.
At the point of collection of a TPS such as a POS is
usually very accurate. The bias may appear when the
data is displayed. All data may not be represented.
This may become an ethical issue if this bias has
occurred on purpose.

The importance of data in transaction processing,

including:
data security is important as data is often confidential
or has a commercial value, therefore, it needs to be
protected from unauthorised access.
data accuracy means that the data is correct and that
the data is up to date (current)
data integrity describes the reliability of data. This will
include statements of data currency, correct entry of
data and accuracy of the data.

Control in the transaction processing commences with

collecting and the way the TPS manipulates the data.
Preparation and authorisation of the data entered
needs to be considered. The control over the TPS is
vital due to the large volume of data and the TPS usually
only provides the user with a part of the transaction
process. The TPS method of error correction is
very important.
The TPS should not be the only source of
information that the business operator uses to
make decisions. Information from management

Transaction Processing Systems

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