Transaction processing system
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Transcript of Transaction processing system
Transaction Processing System,
Characteristics and Processing Cycle
Inam Ul-HaqLecturer in Computer Science
UE, Okara [email protected], [email protected] MIS
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Transactions
• Transactions…• Basic business operations such as customer orders, purchase orders,
receipts, time cards, invoices, and payroll checks in an organization• A business activity between seller and buy to exchange an asset for
payment.
• Transaction processing systems (TPS)• Perform routine operations and serve as a foundation for other
systems • OR• TPS is an information processing system for all business transactions
involving collection, modification and retrieval of transaction data• A Transaction MIS
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Batch vs. On-Line Transaction Processing• Two types of TPS:
• Batch processing• A system whereby business transactions are accumulated over a
period of time and prepared for processing as a single unit or batch
• Manufacturing products, supply chain, salaries
• On-line transaction processing (OLTP)• A system whereby each transaction is processed immediately,
without the delay of accumulating transactions into a batch• Real-time transaction• Mostly in Online shopping• Uses PCI cards(Payment Card Industry: MasterCard, Visa, Maestro,
American Express, Discover, )• Paypal or WorldPay, WePay, eWay, ICEPAY,
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Batch vs. On-Line Transaction Processing(Online TPS)
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Batch vs. On-Line Transaction Processing(Batch Processing)
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Functions of TPS
• Input Functions• Place an order for LUNCH
• Processing Functions• Pizza is being prepared and served
• Output Functions• Go to counter for payment, show discount cards, get invoice
Characteristics of TPS
• Performance• Rapid Processing : customers can’t wait for TPS to respond.
• Reliability: Breakdown will disrupt or stop business• E.g.Banking, Financial, Stocks, Airline reservations• Consistency: All parties must agree on facts of exchange• Atomicity: All operations fail or succeed• Data Integrity• TPS is primarily concerned with data integrity• Efficiency• Paperless Transactions• Reduce manual data entry (errors)• Speed up transaction process• Elimination of redundant steps
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Objectives of TPS
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• 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
Processing Cycle
Data Entry• Collecting and capturing transactions• No longer manual:• Old technologies Bar Codes, Magnetic Strips (credit cards)• New technologies RFID, Smart Cards,
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Corporatedatabases
ofinternal
data
Databasesof
externaldata
Databasesof
validtransactions
Operational Databases
(CRM)
Transactionprocessing
systems MIS
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Application databases
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App databasesEbay.com, photo.net uses OracleFacebook.com built over MySQL
Schematic View (Cont.)
Processing CycleDatabase Maintenance• TPS helps ensure the databases are up-to-date and correct.• Multiple databases (internal & external)• A single purchase• decreases quantity – Inventory Database• decrease credit – Credit Card Database• increase sales – Sales Database
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Processing Cycle
Document/Report Generation• Examples• purchase orders• pay checks• sales receipts• invoices• bank statements
An MIS also generates reports, but TPS reports are operational (no analysis). M
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Processing Cycle
Inquiry Processing• Examples• when was a purchase made• does a customer have any credits on their account• was an item scheduled for delivery• was a package signed for
An MIS also allows for inquiries, but the information available is summarized (or aggregated), i.e., What are the total sales for a whole department? What is the best selling product?
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Processing Cycle
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Transaction Processing System• An Order Entry System affects• accounting data• inventory data• customer data• financial data• invoicing data
• Enhanced Feedback: • Inventory is updated at the point of ordering, not at the point of
fulfillment. Eliminates surprise backorders (out-of-stock products). M
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