2. Transaction Processing Systems n What is a TPS? n Characteristics of TPS n a Transaction Processing Model n POS(Point Of Sale) Transaction Processing System n Batch Processing vs. On-line Processing n TPS Applications

3. What is a TPS? n an information system designed to process routine business transactions n seeks time- and cost-efficiency by automating repetitive operations in large volumes n interfaces with an organization’s other information systems, such as IRS, DSS, EIS n centers around accounting and finance transactions n e.g,, airline reservation systems, order entry/processing systems, bank’s account processing systems

4. The Major Characteristics of TPS n Large amounts of data are processed. n The sources of data are mostly internal, and the output is intended mainly for an internal audience. n The TPS processes information on a regular basis: daily, weekly, monthly, etc. n Large storage (database) capacity is required. n High processing speed is needed due to the high volume. n TPS basically monitors and collects past data. n Input and output data are structured (i.e., standardized). n Low computation complexity is usually evident in TPS. n A high level of accuracy, data integrity, and security is needed. n High reliability is required. n Inquiry processing is a must.

5. Data Input Data Processing Output Generation Data Storage A Transaction Processing Model

6. Barcode Scanner POS TPS UPC Product DB Inventory DB Information Reporting System Customer Receipt Exception Reports UPC Price UPC & Quantity Product, Quantity, Date, Time, Price POS(Point Of Sale) TPS Purchasing DB Quantity, Date, Time

7. Transaction Data Processing Trans. File New Master File Old Master File Documents/ Reports Batch Processing

8. On-line Processing On-line Data Processing Documents/ Reports Transaction Data Inquiries/ Reponses Transaction Data Transaction Data

9. TPS Applications n Order Processing n Purchasing n Accounts Receivables & Accounts Payables n Receiving & Shipping n Inventory on Hand n Payroll n General Ledgers