This document discusses transaction processing systems (TPS). It defines a TPS as an information system that captures and processes data from daily business transactions like deposits, payments, orders or reservations. A TPS has several functions including processing transactions, outputting information, and accepting user inputs. It discusses the differences between batch processing, which collects and stores data to update databases later, and real-time processing, which immediately processes transactions. Key features of TPS include rapid response, reliability, inflexibility, and controlled processing. TPS must pass the ACID test of atomicity, consistency, isolation and durability to qualify. The document outlines the five stages of transaction processing: data entry, processing, database maintenance, document/report

1. Represented By
M.Yameen Shakir
Email: Yami.Shakir786@gmail.com
University of Education Okara campus
Renala Khurd

2. Outline
 Information
systems
 Components of
IS
 Types of IS
 TPS
 Definition of TPS
 Function of TPS
 Types of TPS
 Features of TPS
 Properties of
TPS
 Example of TPS
 Storing &
Retrieving data

3. What is Information Systems ?
In these days, Information systems used in every field of life
For example: Education, Manufacturing, Researches, Games,
Entertainment, Business and etc.
So it is define as :
An Information System is a combination of software,
hardware, and telecommunication systems which can
support business operation to increase productivity and the
help managers make decision. 0R
Information system: system consisting of the network of
all communication channels used within an organizati
Many companies today use IS as a basis
productivity, producing quality products, providing quality
services , creating customer confidence and making timely
decision.

4. Components of IS
Information System contains 5
components
Data
Process
Informatio
n
Software
Hardware

5. Types of Information system
Information
systems
DSS
EIS
MIS
OSS
PCSOIS
Expert
system

6. Transaction Processing
System
A transaction processing system (TPS) is an
information system that captures and processes data
generated during an organization’s day-to-day
transactions. A transaction is a business activity such
as a deposit, payment, order or reservation.
0R
Transaction Processing Systems (TPS) System that
performs or records daily routine transactions .
0R
Transaction Processing Systems (TPS) System that
collects, stores, modifies, and retrieves the data
transaction of an enterprise.

7. There are different examples of
Transaction Processing Systems (TPS)
Paying by
cheque
Credit
&Debit
card
E-
Commerc
e
MICR
Barcode
Reader
Payroll
Sales
order Entry
ATM

8. Function of TPS
PROCESS
function
OUTPUT
function
USER
INPUT
function

9. Transaction
Processing System
Real-Time
Processing
Batch
Processing

10. Batch Processing
Batch processing transaction is the
processing as collects the data/ store at
a time of the event with actual updating
of the database later when it is schedule
or there is enough data.
An example may be accounts which are
make to be easily stored & update due
to amount and type of data. Example of
this maybe telephone

11. Real-Time Processing
Real time Processing is the processing as
real time transaction processing as
immediate processing of data with the
database update as the transaction is
being carried out.
An example maybe ATM or POS terminal.
Both have user input which require
feedback.

12. Batch processing vs Real time
processing
Batch processing Real time processing
 transaction data are
accumulated
 processed periodically
 used to be necessary
because of
synchronization
problems
 Example is paying by
cheque
 also called online
 immediately processed
 Syncronization issues
 What if two people order
the same product at the
same extact time, but
there is only one product
left
 Example of real time
processing is ATM

13. Feature of transaction processing
system
 Rapid response:
Fast performance with rapid result.
 Reliability:
Well designed backup and recovery with a
low failure rate.
 Inflexibility:
Treat every transaction equally. It maybe
used many time each day which means it ha to be precise
and inflexible
 Controlled Processing:
Maintain specific requirement for
the roles and the responsibility of different employees.

14. Qualifiers for TPS
In order to qualify as a TPS transaction
made by system must pass by the ACID
test
 Atomicity
 Consistency
 Isolation
 Durability

16. STAGES OF TRANSACTION
PROCESSING
Five Stages Of Transaction Processing
 Data Entry
 Processing
 Database Maintenance
 Document And Report Generation
 Inquiry Processing

17. Processing cycle
Data Entry Transaction Processing
 Collecting and capturing
transactions
 No longer manual:
Old technologies Bar
Codes, Magnetic Strips
(credit cards)
New technologies RFID,
Smart Cards,
 Synchronization Issues:
Which transaction to
process next.
Breaking ties
Dependencies
○ Can’t schedule delivery
before credit approval.

18. Processing Cycle
Database Maintenance Document/Report
Generation
 TPS helps ensure the
databases are up-to-date
and correct.
 Multiple databases
 A single purchase
decreases quantity –
Inventory Database
decrease credit – Credit
Card Database
sales – Sales Database
Document/Report
Generation
 Examples
purchase orders
pay checks
sales receipts
invoices
bank statements
An MIS also generates
reports, but TPS
reports are operational
(no analysis).

19. Inquiry Processing
 Examples
when was a purchase made
does a customer have any credits on their
account
was an item scheduled for delivery
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?

20. Processing Cycle

21.  Every organisation needs to be aware and conscious of development,
 especially in the fields of computing and information technology, to ensure
 that they would not be left behind and fail in the competition to move
 forward.
 • To compete in business, the management needs to provide the necessary
 infrastructure so that the information technology environment can be
 developed. This includes the provision of the information system
 components.
 • To realise information systems in business, an information system expert
 needs to model a business process, i.e. to determine what are the business
 activities for an organisation, and what are the processes involved in the
 implementation activity. With this kind of specification, a new information
 system can be developed.
 • Information systems play a very important role in the management aspect of
 an organisation. By looking at the functions and the scope of its use, an
 information system can be divided into two main support systems, i.e.
 Operation Support System and Management Support System.

22. Peace, Love and Serve