Transaction Processing System  Business Transactions are certain events that occur routinely in a business firm.  A transaction is a set of activities occurring between 2 or more persons relating to the conduct of business, commercial or government affairs.

 A transaction is an agreement between a buyer & seller to exchange asset for payment  business transactions induce 2 types of flows  Physical / Logical flow  Information flow A transaction Processing System collects & stores data about transactions and sometimes controls decisions made as part of a transaction.

Example-A sales order from a customer  Debiting customer account with value of goods.  Crediting sales file with the value of goods  Updating inventory file with the quantity of stock sold  Generating docs like sales invoice, bill of exchange etc.  Packing the goods and handling them to the delivery staff.  Delivering the goods.

Transaction Modes  Batch processing  Online processing  Online Real time processing  Distributed processing

Transaction Modes  Batch Processing- method of computerized processing in which business transactions are accumulated over a period of time and prepared for processing as a single unit  On-line processing(OLTP)- method of computerized processing in which each transaction is processed immediately and the affected records are updated

Online Real time Processing if the transaction is processed singly and as it occurs without any loss of time between event and recording of the event Distributed Processing Some processing power is distributed to local or regional level offices by installing computers there rather than centralizing

Batch versus On-Line Processing

Objectives of a TPS  Increase labor efficiency  Capture, process and store transactions and produce output  Maintain error-free data input and processing  Ensure data and information integrity  Produce timely documents and reports  Provide increased and enhanced service  Increase customer loyalty  Achieve competitive advantage

Characteristics of a TPS  Large amount of input data  Large amount of output data  Large storage requirements  efficient processing  Fast input/output capabilities  High degree of repetition in processing  Simple Computations  Large number of users impacted by the system  If the TPS fails to operate correctly, the impact on the organization is high

Transaction Processing Activities  Data collection  Data editing  Data correction  Data manipulation  Data storage  Document production and reports

 Data Collection is the process of capturing and gathering all data needed to complete one or more transactions. Can be done manually, or using devices like scanners & point-of-sale equipments like touch screens, keyboards, handhelds.  Data Editing is the process of checking data for validity and completeness.  Data Correction is the process of reentering mis-keyed or mis-scanned data that was found during the data editing.  Data Manipulation is the process of performing calculations and other data transformations like classifying data and sorting files.  Data Storage is the process of placing transaction data into one or more databases.

Transaction processing E.g.  Automatic Teller Machines use a number of specialized computer programs to handle bank transactions.  Order processing applications collect and process orders from clients (mail, telephone, staff sales is usually used). Once orders are taken, invoicing, accounts receivable and inventory control processing applications are also initiated.

Bank auto-teller system  Each machine in a network is used 300 times a day  Bank has over 1000 machines  Each machine handles about 200, 000 transactions  About 300, 000 database transactions in total per day

ATM system organization

Transaction Processing Cycle  Data Entry  Input data validation  Transaction Processing and validation of results  File and database maintenance  Document and report generation  Inquiry processing

Transaction Occurs Enter Data Validate input And process Generate o/p Update DB Facilitate queries DB

Transaction Documents  Informational documents  Action Oriented Documents  Pre-planned reports  Ad-hoc reports and inquiry responses

E.g. of OLTPS  Airlines reservation System  Online Security Trading  Online Banking  Electronic Broking