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Transaction Processing System,
Characteristics and Processing Cycle
Inam Ul-Haq
Lecturer in Computer Science
UE, Okara Campus
organizer@dfd-charity.com, inam@ue.edu.pk
MIS,UniversityofEducation,OkaraCampus
1
MIS,UniversityofEducation,OkaraCampus
2
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
MIS,UniversityofEducation,Okara
Campus
3
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,
MIS,UniversityofEducation,OkaraCampus
4
Batch vs. On-Line Transaction
Processing
(Online TPS)
MIS,UniversityofEducation,OkaraCampus
5
Batch vs. On-Line Transaction
Processing
(Batch Processing)
MIS,UniversityofEducation,OkaraCampus
6
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
MIS,UniversityofEducation,OkaraCampus
7
Objectives of TPS
MIS,UniversityofEducation,OkaraCampus
8
• 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,
MIS,UniversityofEducation,OkaraCampus
9
Corporate
databases
of
internal
data
Databases
of
external
data
Databases
of
valid
transactions
Operational
Databases
(CRM)
Transaction
processing
systems
MIS
Decision
support
systems
Executive
support
systems
Expert
systems
Business
transactions
Input and
error list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled
reports
Employees
Corporate
intranet
Application
databases
UniversityofEducationOkaraCampus
10
App databases
Ebay.com, photo.net uses Oracle
Facebook.com built over MySQL
Schematic View (Cont.)
Processing Cycle
Database 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
MIS,UniversityofEducation,OkaraCampus
11
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).
MIS,UniversityofEducation,OkaraCampus
12
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?
MIS,UniversityofEducation,OkaraCampus
13
Processing Cycle
MIS,UniversityofEducation,Okara
Campus
14
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).
MIS,UniversityofEducation,OkaraCampus
15

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Transaction processing system

  • 1. Transaction Processing System, Characteristics and Processing Cycle Inam Ul-Haq Lecturer in Computer Science UE, Okara Campus organizer@dfd-charity.com, inam@ue.edu.pk MIS,UniversityofEducation,OkaraCampus 1
  • 2. MIS,UniversityofEducation,OkaraCampus 2 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
  • 3. MIS,UniversityofEducation,Okara Campus 3 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,
  • 4. MIS,UniversityofEducation,OkaraCampus 4 Batch vs. On-Line Transaction Processing (Online TPS)
  • 5. MIS,UniversityofEducation,OkaraCampus 5 Batch vs. On-Line Transaction Processing (Batch Processing)
  • 6. MIS,UniversityofEducation,OkaraCampus 6 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
  • 7. 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 MIS,UniversityofEducation,OkaraCampus 7
  • 8. Objectives of TPS MIS,UniversityofEducation,OkaraCampus 8 • 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
  • 9. Processing Cycle Data Entry • Collecting and capturing transactions • No longer manual: • Old technologies Bar Codes, Magnetic Strips (credit cards) • New technologies RFID, Smart Cards, MIS,UniversityofEducation,OkaraCampus 9
  • 10. Corporate databases of internal data Databases of external data Databases of valid transactions Operational Databases (CRM) Transaction processing systems MIS Decision support systems Executive support systems Expert systems Business transactions Input and error list Drill-down reports Exception reports Demand reports Key-indicator reports Scheduled reports Employees Corporate intranet Application databases UniversityofEducationOkaraCampus 10 App databases Ebay.com, photo.net uses Oracle Facebook.com built over MySQL Schematic View (Cont.)
  • 11. Processing Cycle Database 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 MIS,UniversityofEducation,OkaraCampus 11
  • 12. 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). MIS,UniversityofEducation,OkaraCampus 12
  • 13. 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? MIS,UniversityofEducation,OkaraCampus 13
  • 15. 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). MIS,UniversityofEducation,OkaraCampus 15

Editor's Notes

  1. MIS, University of Education, Okara Campus
  2. MIS, University of Education, Okara Campus
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