Type of Information System
Type of Information System
Type of Information System
DEFINITION
• TRANSACTION PROCESSING SYSTEM IS A TYPE OF INFORMATION PROCESSING SYSTEM,
SOFTWARE AND HARDWARE COMBINATION, WHICH SUPPORTS TRANSACTION PROCESSING.
• TRANSACTION PROCESSING SYSTEMS ARE THE BASIC BUSINESS SYSTEMS THAT SERVE THE
OPERATIONAL LEVEL OF THE ORGANIZATION. A TRANSACTION PROCESSING SYSTEM IS A
COMPUTERIZED SYSTEM THAT PERFORMS AND RECORDS THE DAILY ROUTINE TRANSACTIONS
NECESSARY TO THE CONDUCT OF THE BUSINESS
• AT THE LOWEST LEVEL OF THE ORGANIZATIONAL , HIERARCHY WE FIND THE TRANSACTION
PROCESSING SYSTEMS THAT SUPPORT THE DAY-TO-DAY ACTIVITIES OF THE BUSINESS
HOW TRANSACTION PROCESSING SYSTEM WORK ?
TYPE OF TPS :-
1) BATCH TRANSACTION PROCESSING
• THIS IS INFORMATION THAT IS GATHERED AND STORED BUT NOT PROCESSED IMMEDIATELY
FOR EXAMPLE THE PROCESSING OF AN INVOICE IN A BANKING SYSTEM
2 ) REAL TIME / ON-LINE TRANSACTION PROCESSING
• THIS IS A TRANSACTION WHICH IS PROCESSED IMMEDIATELY AND THE OPERATOR HAS ACCESS TO
ON-LINE DATABASE I.E. WITHDRAWAL FROM A BANK ACCOUNT, LIBRARY LOANS ETC..
3) TRANSACTION PROCESSING
• ALSO ATTEMPT TO PROVIDE PREDICTABLE RESPONSE TIMES TO REQUESTS, ALTHOUGH THIS IS NOT
AS CRITICAL AS FOR REAL-TIME SYSTEMS. RATHER THAN ALLOWING THE USER TO RUN ARBITRARY
PROGRAMS AS TIME-SHARING, TRANSACTION PROCESSING ALLOWS ONLY PREDEFINED,
STRUCTURED TRANSACTIONS
HOW TRANSACTION PROCESSING SYSTEM WORK ?
FEATURES
• RAPID RESPONSE: THE RESPONSE TIME OF A TRANSACTION PROCESSING SYSTEM (TPS) IS IMPORTANT BECAUSE A
BUSINESS CANNOT AFFORD TO HAVE THEIR CUSTOMERS WAITING FOR LONG PERIODS OF TIME BEFORE MAKING A
TRANSACTION.
• RELIABILITY: A GOOD TPS MUST BE VERY RELIABLE BECAUSE IF IT WERE TO BREAK DOWN BUSINESSES COULD LOSE A
HUGE PORTION OF REVENUE BECAUSE CUSTOMERS WOULD NOT BE ABLE TO PURCHASE THEIR PRODUCTS.
• INFLEXIBILITY: THE TPS MUST WORK THE SAME WAY FOR EVERY TRANSACTION AS LONG AS THE TPS IS BEING USED.
THE FORMALITY AND STRUCTURE SHOULD NEVER CHANGE.
• CONTROLLED PROCESSING: THE TPS MUST BE ABLE TO ALLOW AUTHORIZED EMPLOYEES TO BE ABLE TO ACCESS IT AT
ANY TIME.