Basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, and payroll checks in an organization Perform routine operations and serve as a foundation for other systems
Transaction processing systems (TPS)
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
On-line transaction processing (OLTP)
A system whereby each transaction is processed immediately, without the delay of accumulating transactions into a batch
Batch Schematic
Data entry of accumulated transactions
Input (batched)
Output
On-line Schematic
Terminal Terminal Terminal
Output
Terminal
Immediate processing of each transaction
Terminal Terminal
Objectives of TPS
Process data generated by and about transactions
Maintain a high degree of accuracy Ensure data and information integrity and accuracy Produce timely documents and reports Increase labour efficiency Help provide increased and enhanced service Help build and maintain customer loyalty
Achieve competitive advantage
Transaction processing cycle
Data collection Data editing Data correction Data manipulation Data storage Document production
Original data Data collection Data edit
Data correction
Data manipulation
Data storage Document production
Control and Management Issues
Business resumption planning
The process of anticipating and providing for disasters. The implementation of the business resumption plan. An examination of the TPS in an attempt to answer three basic questions
Disaster recovery
Transaction processing system audit
Does the system meet the business need? What procedures and controls have been established? Are the procedures and controls being properly used?