An introduction to TPS

1. T R A N S A C T I O N
P R O C E S S I N G
S Y S T E M S
I N F O R M A T I O N S Y S T E M S C O N C E P T
( I S 1 8 4 1 0 2 )
F a l l S e m e s t e r 2 0 2 0 / 2 0 2 1
Anisah Herdiyanti, M.Sc, ITILF
anisah@is.its.ac.id
Management of Information Systems Laboratory
Department of Information Systems

2. S P E C I F I C L E A R N I N G O U T C O M E
Able to explore various roles of information systems in business

3. A G E N D A
• Opening: Enterprise Systems
• What: overview of TPS
• What: transaction processing related activities
• Closing: Suggested materials for further discussion

4. O P E N I N G

5. K E Y D E F I N I T I O N S
• Enterprise system
Ensures information can be shared across all business functions and all
levels of management to support the running and managing of a
business
• Examples of Enterprise Systems
• ERP: enterprise resource planning systems
• CRM: customer relationship management systems
• SCM: supply chain management systems

6. O V E R V I E W O F T P S
W H A T

7. A N O V E R V I E W O F T R A N S A C T I O N
P R O C E S S I N G S Y S T E M S ( T P S )
• Capture and process detailed data necessary to update records about
fundamental business operations
• Include order entry, inventory control, payroll, accounts payable, accounts
receivable, general ledger, etc.
• Provide employees with data to help them achieve their goals

8. T P S P E R S P E C T I V E I N B U S I N E S S

9. T R A D I T I O N A L T P S M E T H O D S A N D
O B J E C T I V E S
• Batch processing system:
Data processing in which business transactions are:
• Accumulated over a period of time
• Prepared for processing as a single unit or batch
• Online transaction processing (OLTP):
Data processing in which each transaction is processed immediately

10. B A T C H V S
O N L I N E
T R A N S A C T I O N
P R O C E S S I N G

11. I N T E G R A T E D
T P S

12. T R A N S AC T I O N
P R O C E S S I N G R E L AT E D
A C T I V I T I E S
W H A T

13. T R A N S A C T I O N P R O C E S S I N G
A C T I V I T I E S
Goals
• Capture and process data that
describes fundamental
business transactions
• Update databases
• Produce a variety of reports
Activities
The process of
data collection,
data editing,
data correction,
data
manipulation,
data storage,
and document
production

14. T P S A C T I V I T I E S # 1 :
D A T A C O L L E C T I O N
• Capturing and gathering all data necessary to complete the processing of
transactions
• Data collection can be:
• Manual
• Automated via special input devices
• Data should be:
• Collected at source
• Recorded accurately, in a timely fashion

15. P O I N T O F S A L E ( P O S )

16. T P S A C T I V I T I E S # 2 :
D A T A E D I T I N G
• Checking data for validity and completeness to detect any problems
• Examples:
• Quantity and cost data must be numeric
• Names must be alphabetic

17. T P S A C T I V I T I E S # 3 :
D A T A C O R R E C T I O N
• Reentering data that was not typed or scanned properly
• Error messages must specify the problem so proper corrections can be
made

18. T P S A C T I V I T I E S # 4 :
D A T A M A N I P U L A T I O N
• Performing calculations and other data transformations related to
business transactions
• Can include:
• Classifying data
• Sorting data into categories
• Performing calculations
• Summarizing results
• Storing data in the organization’s database for further processing

19. T P S A C T I V I T I E S # 5 :
D A T A S T O R A G E
• Updating one or more databases with new transactions
• After being updated, this data can be further processed and manipulated
by other systems

20. T P S A C T I V I T I E S # 6 - # 7 :
D O C U M E N T P R O D U C T I O N A N D
R E P O R T S
• Generating output records, documents, and reports:
• Hard-copy paper reports
• Displays on computer screens
• Results from one TPS can be inputs to another system

21. T R A D I T I O N A L T P S A P P L I C A T I O N S
A TPS typically includes the following types of systems:
• Order processing systems
• Accounting systems
• Purchasing systems

22. T P S F O R S M A L L M E D I U M
E N T E R P R I S E S

23. C LO S I N G

24. R E C O M M E N D E D S O U R C E S O F
L E A R N I N G
• [ARTICLE] How Effective Managers Use Information Systems
https://hbr.org/1976/11/how-effective-managers-use-information-systems
• [VIDEO] Transaction Processing Systems - A-Z of business terminology
https://www.youtube.com/watch?v=crDsAQcjjG0

25. Source: https://biostore.co.uk/wp-content/uploads/18.06.2015-Management-information-systems-in-education.jpg
W H A T N E X T ?
W H A T A R E M I S

26. U S E F U L R E A D I N G S
• Information Concepts (pp. 358 - 365)
Ralph Stair, and George Reynolds. (2010). Part 3 : Business Information
Systems, Chapter 9: Enterprise Systems

27. C L A S S A C T I V I T I E S
• Read article related to e-commerce in the WEEK07 Readings available via
MyITS Classrom
• Highlight important words (keywords) from the articles, and search for
supporting definitions on the keywords – if the articles do not give a clear
definition that you are looking for

28. anisah@is.its.ac.id
check our annual conferences at www.isico.info | www.sesindo.org
https://www.its.ac.id/si/