2. Transaction Processing Systems
These are information systems carry out the
seven processes with regards to the transactions
of an organisation.
A transaction occurs when goods and services are
exchanged for some form of payment.
.
3. Transaction Processing Systems
ACID is the acronym for the four properties
Atomicity-the transaction starts and each step must
be completed or it will be undone.
Consistency-data is agreed upon, remains in a
consistent state and is accounted for.
Isolation-treats each transaction separately and
keeps data from each transaction separate.
Durability-the data should continue to exist.
4. Transaction Processing Systems
characteristics of transaction processing systems
There are two types of TPS:
Batch processing and Real Time processing.
Batch Processing transactions is the processing as the
collection/storage of data at the time of the event with
actual updating of the database later when it is
scheduled or there is enough data.
An example may be the accounts which are not able to
be easily stored and updated due to the amount and
type of data used. Examples of this may be a telephone
account, which accumulates over a period of time.
5. Transaction Processing Systems
characteristics of transaction processing systems
Batch processing : (compared to real time)
Advantages:
• Control over time of processing;
• Standardisation;
• Reduced setup and processing costs
Disadvantages:
• Errors corrected after the processing of data;
• Time delay in gathering data, storing and bulk
processing;
• Operational costs may increase;
• Only identical data is processed in one batch.
6. Transaction Processing Systems
characteristics of transaction processing systems
Real time transaction processing as the immediate
processing of data with the database updated as
the transaction is being carried out.
An example may be the Bank ATM and POS
terminal, both of which have user input which
requires immediate feedback.
7. Transaction Processing Systems
Characteristics of transaction processing systems
Real 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.
8. Transaction Processing Systems
characteristics of transaction processing systems
Data validation is a process that ensures that the
correct type and valued data is input into a system.
There are two types involved in TPS:
1. Transaction Initiation-provides correct steps of
access. (verification)
2. Field Checking-ensures correct data type is
used by checking entered data by type required.
(comparison)
9. Transaction Processing Systems
characteristics of transaction processing systems
The significance of data validation in transaction
processing 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.
10. Transaction Processing Systems
characteristics of transaction processing systems
The historical significance of transaction processing
as the first type of information systems, was driven by
business. Business computerised manual processes
used such as collecting, recording and reporting.
Punch cards and tape drives suited batch processing.
Processing was carried out after hours mainly
concerned with payrolls.
Developments in technology providing greater speed
and lower costs allowed Real Time processing to be
developed alongside Batch Processing.
11. Transaction Processing Systems
characteristics of transaction processing systems
Transaction processing is easily computerised as it is
based on clear sets of rules followed by an operator in
equivalent manual systems.
Rules are set out and must be followed step by step to
be considered as a successful transaction.
Computerisation also is able to be set up in the same
way. A TPS needs therefore, to be based on detailed
specifications, dealing with the collection of data, in
which formats and matching the operation of the
organisation.
12. Transaction Processing Systems
examples of transaction processing systems
The components of a transaction processing system, including:
1. users of the information system as belonging to the same
organisation that owns the transaction processing system
2. participants as the people who conduct the information
processing
3. people from the environment becoming participants in real
time systems as they directly enter transactions and perform
validation
Examples of real time transaction processing, including:
1. reservation systems; 2. point of sale terminal;3. library loans
Examples of batch processing, including:
1. clearing of presented cheques; 2. generation of bills;
3. systems that appear real time, computerising transactions as
they occur, but actual updating is processed in batch, such as
credit card transactions.
13. Transaction Processing Systems
storing/retrieving in transaction processing systems
Storage of data in relational and flat-file databases in
digital form as it has the ability to manipulate, store and
retrieve along with process and display with digital
technology.
Data, is for large companies collected in batched
format
Retrieval of stored data to conduct further transaction is
usually warehoused.
Sequential, indexed sequential and hashed files
generally store the data in databases.
14. Transaction Processing Systems
storing/retrieving in transaction processing systems
Sequential data storage are data records one after the other in
entry or key field order, header stores and field order of each
record in a data dictionary with a search completed using either
binary or linear.
Indexed sequential data storage are records stored in any order
and with a separate index file, keeping matching key field items
with the records position. This is faster, but continual updates to
index file requires two files which must be maintained.
Hashed file storage will divide the disk space into numbered
locations, with key field. At the time that they are divided by the
total locations a remainder is provided as storage location.
16. Transaction Processing Systems
storing/retrieving in transaction processing systems
transaction database for analysis-backup procedures, including:
Grandfather is the oldest backup, Father is the middle
backup, Son is the most recent backup
Incremental will only back up files that were altered
since the last full or partial backup. This saves time as
an entire data backup does not occur.
Tape is a preferred medium, which is a slow backup
process, but is cheap and is portable. This can be
archived for many years.
17. Transaction Processing Systems
storing/retrieving in transaction processing systems
transaction database for analysis- backup procedures, including:
Off-site storage is physically separated from the
main system. This is also more secure as if the main
system is damaged due to fire, the data is safe.
Partial backup, or differential backup does only files
that were altered since the last full backup was
completed.
Recovery testing will backup small subsets of files
and recovering them for storage in new location.
18. Transaction Processing Systems
storing/retrieving in transaction processing systems
transaction database for analysis-backup procedures, including:
Sequential process will use tape rotation to complete
the backup procedure.
Specialised backup software permits scheduling of
unattended backup procedures, reports and
compression.
19. Transaction Processing Systems
Updating is different for Real time processing and for Batch processing
Real-time updating is suited to the direct access to
storage system. This system usually has a RAID hard
drives which are very reliable. Data is entry updated
onto a daily transaction file and master file with
Transaction data kept online on a master file.
There is user interface with validation fields used such
as radio buttons and pull-down menus.
20. Transaction Processing Systems
Updating is different for Real time processing and for Batch processing
Batch updating is suited to the use of sequential
tape-based storage systems.
Used previously along with paper records, magnetic
tape, punched cards with an offline master retained.
Record deletion was required and a complete copy was
made 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.
21. Transaction Processing Systems
other information processes in transaction processing systems
Collecting in transaction processing:
Hardware, including:
- MICR is used by banks as a high speed and accurate
reader of the characters that are printed on a cheque
and deposit slips using ink that has magnetised
particles. This is an example of batch processing.
- ATM is a banking terminal, which customers are able
to access to carry out common banking transactions.
This is an example of real time processing.
- Barcode readers is a fixed or handheld device that
reads barcodes that hold details about product, price
and description. The bar code reader uses a lazer.
22. Transaction Processing Systems
other information processes in transaction processing systems
Collecting
Data collection: MICR on cheques, barcodes, ATM,
screen-based collection
screen design: white space, grey shades, standout
colours for critical data, group related data, use of
buttons for selection, objects alignment, minimal
keying, logical order for fields.
Web form collection: screen design, submit and clear
entries button, frames for consistency, resolution of
user’s screen, 216 colours, cross-platform and browser
version compatibility, relating to both real-time or batch
processing
23. Transaction Processing Systems
other information processes in transaction processing systems
Analysing The output of a TPS is often the input to
other information systems.
Management Information Systems (MIS) will provide
business managers factual details of interest. These
may include reports on inventory, sales and orders
Decision Support Systems (DSSs) give people
particularly in business information that will allow
them to make decisions. Sales data, future and
demographic trends. Data mining in particular comes
into play here.
24. Transaction Processing Systems
issues related to transaction processing systems
Changing nature of work and the effect on
participants, including:
–the automation of jobs once performed by clerks
–the bypassing of clerks by people in the environment
• manual operations are becoming automated by
technology
• work boundaries between users and participants, are
fuzzy
• employer ability to monitor performance has social
implications
• disappearance of repetitive tasks easily accomplished
by computer systems
25. Transaction Processing Systems
issues related to transaction processing systems
Bias in data collection:
Data needs to be collected fairly, this means without
bias. This word bias means that the data will not give
an accurate account of a situation or of a need.
At the point of collection of a TPS such as a POS is
usually very accurate. The bias may appear when the
data is displayed. All data may not be represented.
This may become an ethical issue if this bias has
occurred on purpose.
26. Transaction Processing Systems
issues related to transaction processing systems
The importance of data in transaction processing,
including:
Data security is important as data is often confidential
or has a commercial value, therefore, it needs to be
protected from unauthorised access.
Data accuracy means that the data is correct and that
the data is up to date (current)
Data integrity describes the reliability of data. This will
include statements of data currency, correct entry of
data and accuracy of the data.
27. Transaction Processing Systems
issues related to transaction processing systems
Control in the transaction processing commences with
collecting and the way the TPS manipulates the data.
Preparation and authorisation of the data entered needs
to be considered. The control over the TPS is vital due
to the large volume of data and the TPS usually only
provides 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 information
that the business operator uses to make decisions.
Information from management information and decision
support systems need to be considered as well.