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Transactions
โข Transactionsโฆ
โข Basic business operations such as customer orders, purchase orders,
receipts, time cards, invoices, and payroll checks in an organization
โข A business activity between seller and buy to exchange an asset for
payment.
โข Transaction processing systems (TPS)
โข Perform routine operations and serve as a foundation for other
systems
โข OR
โข TPS is an information processing system for all business transactions
involving collection, modification and retrieval of transaction data
โข A Transaction MIS
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Batch vs. On-Line Transaction
Processing
โข Two types of TPS:
โข Batch processing
โข A system whereby business transactions are accumulated over a
period of time and prepared for processing as a single unit or
batch
โข Manufacturing products, supply chain, salaries
โข On-line transaction processing (OLTP)
โข A system whereby each transaction is processed immediately,
without the delay of accumulating transactions into a batch
โข Real-time transaction
โข Mostly in Online shopping
โข Uses PCI cards(Payment Card Industry: MasterCard, Visa, Maestro,
American Express, Discover, )
โข Paypal or WorldPay, WePay, eWay, ICEPAY,
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Functions of TPS
โข Input Functions
โข Place an order for LUNCH
โข Processing Functions
โข Pizza is being prepared and served
โข Output Functions
โข Go to counter for payment, show discount cards, get invoice
7. Characteristics of TPS
โข Performance
โข Rapid Processing : customers canโt wait for TPS to respond.
โข Reliability: Breakdown will disrupt or stop business
โข E.g.Banking, Financial, Stocks, Airline reservations
โข Consistency: All parties must agree on facts of exchange
โข Atomicity: All operations fail or succeed
โข Data Integrity
โข TPS is primarily concerned with data integrity
โข Efficiency
โข Paperless Transactions
โข Reduce manual data entry (errors)
โข Speed up transaction process
โข Elimination of redundant steps
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8. Objectives of TPS
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โข Ensure data and information integrity and accuracy
โข Produce timely documents and reports
โข Increase labor efficiency
โข Help provide increased and enhanced service
โข Help build and maintain customer loyalty
โข Achieve competitive advantage
9. Processing Cycle
Data Entry
โข Collecting and capturing transactions
โข No longer manual:
โข Old technologies Bar Codes, Magnetic Strips (credit cards)
โข New technologies RFID, Smart Cards,
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11. Processing Cycle
Database Maintenance
โข TPS helps ensure the databases are up-to-date and correct.
โข Multiple databases (internal & external)
โข A single purchase
โข decreases quantity โ Inventory Database
โข decrease credit โ Credit Card Database
โข increase sales โ Sales Database
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12. Processing Cycle
Document/Report Generation
โข Examples
โข purchase orders
โข pay checks
โข sales receipts
โข invoices
โข bank statements
An MIS also generates reports, but TPS reports are
operational (no analysis).
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13. Processing Cycle
Inquiry Processing
โข Examples
โข when was a purchase made
โข does a customer have any credits on their account
โข was an item scheduled for delivery
โข 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?
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15. Transaction Processing
System
โข An Order Entry System affects
โข accounting data
โข inventory data
โข customer data
โข financial data
โข invoicing data
โข Enhanced Feedback:
โข Inventory is updated at the point of ordering, not at the point of
fulfillment. Eliminates surprise backorders (out-of-stock
products).
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