Transaction Processing SystemsThese are information systems carry out theseven processes with regards to the transactionsof an organisation.A transaction occurs when goods and services areexchanged for some form of payment..
Transaction Processing SystemsACID is the acronym for the four propertiesAtomicity-the transaction starts and each step mustbe completed or it will be undone.Consistency-data is agreed upon, remains in aconsistent state and is accounted for.Isolation-treats each transaction separately andkeeps data from each transaction separate.Durability-the data should continue to exist.
Transaction Processing Systemscharacteristics of transaction processing systemsThere are two types of TPS:Batch processing and Real Time processing.Batch Processing transactions is the processing as thecollection/storage of data at the time of the event withactual updating of the database later when it isscheduled or there is enough data.An example may be the accounts which are not able tobe easily stored and updated due to the amount andtype of data used. Examples of this may be a telephoneaccount, which accumulates over a period of time.
Transaction Processing Systemscharacteristics of transaction processing systemsBatch processing : (compared to real time)Advantages:• Control over time of processing;• Standardisation;• Reduced setup and processing costsDisadvantages:• Errors corrected after the processing of data;• Time delay in gathering data, storing and bulkprocessing;• Operational costs may increase;• Only identical data is processed in one batch.
Transaction Processing Systemscharacteristics of transaction processing systemsReal time transaction processing as the immediateprocessing of data with the database updated asthe transaction is being carried out.An example may be the Bank ATM and POSterminal, both of which have user input whichrequires immediate feedback.
Transaction Processing SystemsCharacteristics of transaction processing systemsReal time transaction processing: (compared to batch)Advantages• Transaction response time is quick if not immediate;• Data is processed as demanded;• Error correction can be immediate.Disadvantages• Standardisation may not exist or may be more difficult;• Processing needs make control difficult;• System hardware and software is expensive;• Backup is critical incase of system crashing;• Security is critical incase of crashing or data security;• The possibility of data corruption requires backup.
Transaction Processing Systemscharacteristics of transaction processing systemsData validation is a process that ensures that thecorrect type and valued data is input into a system.There are two types involved in TPS:1. Transaction Initiation-provides correct steps ofaccess. (verification)2. Field Checking-ensures correct data type isused by checking entered data by type required.(comparison)
Transaction Processing Systemscharacteristics of transaction processing systems The significance of data validation in transactionprocessing is that it will provide: • the transaction a way of processing the data; • the maintains that transaction data and information is current, accurate and up to date; • required reports and documentation; • increased efficiency, resulting in improved service; • a communicative process between provider and client.
Transaction Processing Systemscharacteristics of transaction processing systemsThe historical significance of transaction processingas the first type of information systems, was driven bybusiness. Business computerised manual processesused such as collecting, recording and reporting.Punch cards and tape drives suited batch processing.Processing was carried out after hours mainlyconcerned with payrolls.Developments in technology providing greater speedand lower costs allowed Real Time processing to bedeveloped alongside Batch Processing.
Transaction Processing Systemscharacteristics of transaction processing systemsTransaction processing is easily computerised as it isbased on clear sets of rules followed by an operator inequivalent manual systems.Rules are set out and must be followed step by step tobe considered as a successful transaction.Computerisation also is able to be set up in the sameway. A TPS needs therefore, to be based on detailedspecifications, dealing with the collection of data, inwhich formats and matching the operation of theorganisation.
Transaction Processing Systemsexamples of transaction processing systemsThe components of a transaction processing system, including:1. users of the information system as belonging to the sameorganisation that owns the transaction processing system2. participants as the people who conduct the informationprocessing3. people from the environment becoming participants in realtime systems as they directly enter transactions and performvalidationExamples of real time transaction processing, including:1. reservation systems; 2. point of sale terminal;3. library loansExamples of batch processing, including:1. clearing of presented cheques; 2. generation of bills;3. systems that appear real time, computerising transactions asthey occur, but actual updating is processed in batch, such ascredit card transactions.
Transaction Processing Systemsstoring/retrieving in transaction processing systemsStorage of data in relational and flat-file databases indigital form as it has the ability to manipulate, store andretrieve along with process and display with digitaltechnology.Data, is for large companies collected in batchedformatRetrieval of stored data to conduct further transaction isusually warehoused.Sequential, indexed sequential and hashed filesgenerally store the data in databases.
Transaction Processing Systemsstoring/retrieving in transaction processing systemsSequential data storage are data records one after the other inentry or key field order, header stores and field order of eachrecord in a data dictionary with a search completed using eitherbinary or linear.Indexed sequential data storage are records stored in any orderand with a separate index file, keeping matching key field itemswith the records position. This is faster, but continual updates toindex file requires two files which must be maintained.Hashed file storage will divide the disk space into numberedlocations, with key field. At the time that they are divided by thetotal locations a remainder is provided as storage location.
Transaction Processing Systemsstoring/retrieving in transaction processing systemsData warehousing is the collection of datafrom a range of data sources.
Transaction Processing Systemsstoring/retrieving in transaction processing systemstransaction database for analysis-backup procedures, including:Grandfather is the oldest backup, Father is the middlebackup, Son is the most recent backupIncremental will only back up files that were alteredsince the last full or partial backup. This saves time asan entire data backup does not occur.Tape is a preferred medium, which is a slow backupprocess, but is cheap and is portable. This can bearchived for many years.
Transaction Processing Systemsstoring/retrieving in transaction processing systemstransaction database for analysis- backup procedures, including:Off-site storage is physically separated from themain system. This is also more secure as if the mainsystem is damaged due to fire, the data is safe.Partial backup, or differential backup does only filesthat were altered since the last full backup wascompleted.Recovery testing will backup small subsets of filesand recovering them for storage in new location.
Transaction Processing Systemsstoring/retrieving in transaction processing systemstransaction database for analysis-backup procedures, including:Sequential process will use tape rotation to completethe backup procedure.Specialised backup software permits scheduling ofunattended backup procedures, reports andcompression.
Transaction Processing SystemsUpdating is different for Real time processing and for Batch processingReal-time updating is suited to the direct access tostorage system. This system usually has a RAID harddrives which are very reliable. Data is entry updatedonto a daily transaction file and master file withTransaction data kept online on a master file.There is user interface with validation fields used suchas radio buttons and pull-down menus.
Transaction Processing SystemsUpdating is different for Real time processing and for Batch processingBatch updating is suited to the use of sequentialtape-based storage systems.Used previously along with paper records, magnetictape, punched cards with an offline master retained.Record deletion was required and a complete copy wasmade to a second tape, which was slow.There maybe a user interface but was not essential.The storage system very often had its own display.
Transaction Processing Systemsother information processes in transaction processing systemsCollecting in transaction processing:Hardware, including:- MICR is used by banks as a high speed and accuratereader of the characters that are printed on a chequeand deposit slips using ink that has magnetisedparticles. This is an example of batch processing.- ATM is a banking terminal, which customers are ableto access to carry out common banking transactions.This is an example of real time processing.- Barcode readers is a fixed or handheld device thatreads barcodes that hold details about product, priceand description. The bar code reader uses a lazer.
Transaction Processing Systemsother information processes in transaction processing systemsCollectingData collection: MICR on cheques, barcodes, ATM,screen-based collectionscreen design: white space, grey shades, standoutcolours for critical data, group related data, use ofbuttons for selection, objects alignment, minimalkeying, logical order for fields.Web form collection: screen design, submit and clearentries button, frames for consistency, resolution ofuser’s screen, 216 colours, cross-platform and browserversion compatibility, relating to both real-time or batchprocessing
Transaction Processing Systemsother information processes in transaction processing systemsAnalysing The output of a TPS is often the input toother information systems.Management Information Systems (MIS) will providebusiness managers factual details of interest. Thesemay include reports on inventory, sales and ordersDecision Support Systems (DSSs) give peopleparticularly in business information that will allowthem to make decisions. Sales data, future anddemographic trends. Data mining in particular comesinto play here.
Transaction Processing Systemsissues related to transaction processing systemsChanging nature of work and the effect onparticipants, including:–the automation of jobs once performed by clerks–the bypassing of clerks by people in the environment• manual operations are becoming automated bytechnology• work boundaries between users and participants, arefuzzy• employer ability to monitor performance has socialimplications• disappearance of repetitive tasks easily accomplishedby computer systems
Transaction Processing Systemsissues related to transaction processing systemsBias in data collection:Data needs to be collected fairly, this means withoutbias. This word bias means that the data will not givean accurate account of a situation or of a need.At the point of collection of a TPS such as a POS isusually very accurate. The bias may appear when thedata is displayed. All data may not be represented.This may become an ethical issue if this bias hasoccurred on purpose.
Transaction Processing Systemsissues related to transaction processing systemsThe importance of data in transaction processing,including:Data security is important as data is often confidentialor has a commercial value, therefore, it needs to beprotected from unauthorised access.Data accuracy means that the data is correct and thatthe data is up to date (current)Data integrity describes the reliability of data. This willinclude statements of data currency, correct entry ofdata and accuracy of the data.
Transaction Processing Systemsissues related to transaction processing systemsControl in the transaction processing commences withcollecting and the way the TPS manipulates the data.Preparation and authorisation of the data entered needsto be considered. The control over the TPS is vital dueto the large volume of data and the TPS usually onlyprovides the user with a part of the transaction process.The TPS method of error correction is very important.The TPS should not be the only source of informationthat the business operator uses to make decisions.Information from management information and decisionsupport systems need to be considered as well.