TYPE OF INFORMATION SYSTEM

TRANSACTION PROCESSING SYSTEM ( TPS )

WHAT IS TRANSACTION PROCESSING SYSTEM ( TPS ) ?

DEFINITION
• TRANSACTION PROCESSING SYSTEM IS A TYPE OF INFORMATION PROCESSING SYSTEM,
SOFTWARE AND HARDWARE COMBINATION, WHICH SUPPORTS TRANSACTION PROCESSING.
• TRANSACTION PROCESSING SYSTEMS ARE THE BASIC BUSINESS SYSTEMS THAT SERVE THE
OPERATIONAL LEVEL OF THE ORGANIZATION. A TRANSACTION PROCESSING SYSTEM IS A
COMPUTERIZED SYSTEM THAT PERFORMS AND RECORDS THE DAILY ROUTINE TRANSACTIONS
NECESSARY TO THE CONDUCT OF THE BUSINESS
• AT THE LOWEST LEVEL OF THE ORGANIZATIONAL , HIERARCHY WE FIND THE TRANSACTION
PROCESSING SYSTEMS THAT SUPPORT THE DAY-TO-DAY ACTIVITIES OF THE BUSINESS
 HOW TRANSACTION PROCESSING SYSTEM WORK ?
TYPE OF TPS :-
1) BATCH TRANSACTION PROCESSING
• THIS IS INFORMATION THAT IS GATHERED AND STORED BUT NOT PROCESSED IMMEDIATELY
FOR EXAMPLE THE PROCESSING OF AN INVOICE IN A BANKING SYSTEM
2 ) REAL TIME / ON-LINE TRANSACTION PROCESSING
• THIS IS A TRANSACTION WHICH IS PROCESSED IMMEDIATELY AND THE OPERATOR HAS ACCESS TO
ON-LINE DATABASE I.E. WITHDRAWAL FROM A BANK ACCOUNT, LIBRARY LOANS ETC..
3) TRANSACTION PROCESSING
• ALSO ATTEMPT TO PROVIDE PREDICTABLE RESPONSE TIMES TO REQUESTS, ALTHOUGH THIS IS NOT
AS CRITICAL AS FOR REAL-TIME SYSTEMS. RATHER THAN ALLOWING THE USER TO RUN ARBITRARY
PROGRAMS AS TIME-SHARING, TRANSACTION PROCESSING ALLOWS ONLY PREDEFINED,
STRUCTURED TRANSACTIONS
 HOW TRANSACTION PROCESSING SYSTEM WORK ?
FEATURES
• RAPID RESPONSE: THE RESPONSE TIME OF A TRANSACTION PROCESSING SYSTEM (TPS) IS IMPORTANT BECAUSE A
BUSINESS CANNOT AFFORD TO HAVE THEIR CUSTOMERS WAITING FOR LONG PERIODS OF TIME BEFORE MAKING A
TRANSACTION.
• RELIABILITY: A GOOD TPS MUST BE VERY RELIABLE BECAUSE IF IT WERE TO BREAK DOWN BUSINESSES COULD LOSE A
HUGE PORTION OF REVENUE BECAUSE CUSTOMERS WOULD NOT BE ABLE TO PURCHASE THEIR PRODUCTS.
• INFLEXIBILITY: THE TPS MUST WORK THE SAME WAY FOR EVERY TRANSACTION AS LONG AS THE TPS IS BEING USED.
THE FORMALITY AND STRUCTURE SHOULD NEVER CHANGE.
• CONTROLLED PROCESSING: THE TPS MUST BE ABLE TO ALLOW AUTHORIZED EMPLOYEES TO BE ABLE TO ACCESS IT AT
ANY TIME.

STORING AND RETRIEVING DATA

• A TPS MUST BE ABLE TO EASILY BE ACCESSED BY AUTHORIZED EMPLOYEES SO THAT INFORMATION IN THE TPS CAN BE
RETRIEVED. THE INFORMATION THAT GOES THROUGH
• A TPS MUST NEVER BE DELETED SO THAT THERE WILL NOT BE ANY CONFUSION OF WHAT ORDERS HAVE GONE
THROUGH IT. IT IS A GOOD IDEA TO HAVE A BACK UP HARD DRIVE SO THAT OLDER INFORMATION CAN STILL BE
STORED, BUT WILL NOT SLOW DOWN THE SERVER WHICH HOUSES THE TPS.
 WHO USE TPS ?

ALL EMPLOYEES IN ORGANIZATION :

• BOTTOM OPERATIONAL LEVEL SUCH AS CLERK, GENERAL
EMPLOYEE
• MIDDLE LEVEL SUCH AS JUNIOR MANAGER/ MIDDLE MANAGER
• TOP LEVEL SUCH AS MANAGER/ DIRECTOR/ EXECUTIVE LEVEL
 WHAT IMPACT OF TRANSACTION PROCESSING
SYSTEM ?
1) OPERATIONS HANDLING
• ABILITY TO HANDLE SEVERAL TRANSACTIONS AT ONCE,
• A GOOD TRANSACTION PROCESSING SYSTEM CAN SIMULTANEOUSLY COORDINATE THOUSANDS OF PURCHASES,
DEBIT ACCOUNTS, HOLD EACH PERSON’S PRIVATE BANKING AND ADDRESS INFORMATION, AND EVEN PROCESS
CUSTOMER ORDERS.
2) UNTAPPED MARKETS
• ITS ABILITY TO REACH AND GAIN CUSTOMERS FROM AROUND THE WORLD.
• A TRANSACTION PROCESSING SYSTEM FOR SMALL BUSINESS WILL ALLOW PEOPLE ALL OVER THE WORLD TO ACCESS
AND BUY YOUR BUSINESS’S PRODUCTS OR SERVICES.
3) ONLINE TRANSACTION SYSTEMS
• OPTIMAL SOLUTION FOR ONLINE SHOPPERS.
• THESE SYSTEMS ARE MORE EFFICIENT, HAVE EXCELLENT RESPONSE TIMES, ARE EASY TO USE, AND CAN EASILY HANDLE
ALL TYPES OF CREDIT CARDS
THANK YOU…