The document discusses transaction processing systems (TPS), including what they are, their history and uses. Some key points: - TPS are systems used to record, store and manage data about business transactions like orders, payments, inventory etc. - One of the first major TPS was SABRE, installed by IBM for American Airlines in 1960 to automate flight reservations. - TPS are crucial for businesses of all sizes, ensuring accurate record keeping and enabling important decisions. They provide benefits like reduced errors, faster processing and standardized data handling.

1. TRANSACTION
PROCESSING SYSTEM
PRESENTORS:
SYED ALI UR RAZAK IM-303
M. SAAD SAJID IM-305
UBAID UR REHMAN IM-302
M. JUNAID JAWAID IM-301
MUHAMMAD USMAN IM-026

2. WHAT ARE TRANSACTIONS?
• Transactions are agreement, contract,
exchange, understanding, or transfer of cash or
property that occurs between two or more
parties.

3. Transaction Processing System(TPS)
• Transaction processing system is an
information processing system for
business transactions involving the collection,
modification and retrieval of all transaction data.

4.  Payroll
 Order processing
 Reservations
 Employee records
All these systems collect , store and
update data about transactions.

5. H
I
S
T
O
R
Y

6. HISTORY
• First TPS was installed by IBM for American Air lines
in 1960.
• System is called SABRE
• SABRE (Semi-automated Business Research
Environment)
• Upgraded to IBM System/360 in 1972

7. HISTORY
• Before SABRE:
• All reservations are by hand
• Around 1.5 hours on average per reservation
• Limited to eight operators
• After SABRE:
• Reservations are semi-automated
• Online Transactions of informations
• Time efficient

8. WHY USE TPS?

9. WHY USE TPS
• The basic use of the TPS is it is used to keep record of the
transaction and related information.
• It used in every sector from manufacturing sector to retail sector.
• In retail sector it is used to keep record of sales, inventory, and
wages of employees.

10. WHY USE TPS

11. WHY USE TPS
• In manufacturing sector it is used to keep record of manufactured
goods and inventory
• The information helps to make critical decisions for examples in
banks it is used to decide weather to issue loan or not.
• It is also used to keep records of account payable and account
receivables.
• Nowadays businesses are highly dependent on the TPS
system whether its medium size business or a large enterprise.

12. ACID TEST
Before a system is
to be considered a
TP System, it must
undergo a series of
test that ensures
that is this system
is credible to be a
Transaction
Processing System
or not.

13. ACID IS AN ACRONYM OF
TOMICITY:
It means that a transaction is either completed in full or not at all.
e.g. if funds are transferred from one account to another, this only
counts as a bone fide transaction if both the withdrawal and
deposit take place. If one account is debited and the other is not
credited, it does not qualify as a transaction.
CONSISTENCY:
All input data must have the same data type, i.e. if all values are
positive numbers negative values are refused to be considered.

14. ACID IS AN ACRONYM OF
ISOLATION :
Transactions must appear to take place in isolation. For example,
when a fund transfer is made between two accounts the debiting of
one and the crediting of another must appear to take place
simultaneously. The funds cannot be credited to an account before
they are debited from another.
DURABILITY:
The system must ensure that the transaction is only one way
process, it cannot be undone, and in case of a crash or failure in the
system it must accomplish documentation of all the processes it
undergone

15. TYPES OF TPS SYSTEM
• Generally, there are two categories.
1. INTERNAL TRANSECTION: Transactions that
occur between departments in the
organization itself
2. EXTERNAL TRANSECTION: Transactions that
occur between the organization and external
sources such as sales and purchases between
other organizations, suppliers, or customers.

16. TYPES OF TPS SYSTEM
• Specifically, these are categorized as:
1. REAL-TIME PROCESSING: When the
transaction is recorded as it occurs
and data is managed instantly. As in
ATM machines.
2. BATCH PROCESSING: When all
information is collected and
processed together at a later time. It
is used when time delay is not an
important aspect. i.e. pay cheque.

17. BATCH PROCESSING SYSTEM:
ADVANTAGES
1. control over time of processing
2. Standardization
3. Reduced setup and processing costs
DISADVANTAGES
1. time delay in gathering data , storing and bulk processing
2. Operation cost may increase
3. Only identical data is processed in one batch
4. Errors are corrected after the processing of data

18. REAL TIME PROCESSING(ONLINE) SYSTEM
ADVANTAGES
1. Error correction can be immediate
2. Data is processed as demand
3. No time delay
DISADVANTAGES
1. Standardization may not exist or may be more difficult
2. Processing needs make control difficult
3. System hardware and software is expensive
4. Security is critical

19. TPS APPLICATION IN ENTERPRISE

20. TRADITIONAL TPS APPLICATIONS
Order Processing
Purchasing
Account Receivables &
Payables
Receiving & Shipping
Inventory Control
Payroll
General Ledger

22. KEY FEATURES
• RAPID RESPONSE:
• fast performance with rapid results.
• RELIABILITY:
• well designed backup and recovery with a low failure rate.
• INFLEXIBILITY:
• treat every transaction equally.
• CONTROLLED PROCESSING:
• maintain specific requirement for the roles and responsibilities
of different employees.

23. IMPORTANCE:
It reduces the chances of error and saves money and time as the
whole process is automated.
Nowadays the TPS has Become an integral part of any business
organization
Very few businesses can operate without it

24. TYPE OF ORGANIZATION USAGE
Banks 14000
Airlines 400
Cab rental service 42
Cruise liners 17
Hotels 220000
Rail providers 38

26. References
• https://en.wikipedia.org/wiki/Transaction_processing_system#
• https://en.wikipedia.org/wiki/Sabre_(computer_system)
• https://www.google.com.pk/search?q=number+of+banks+thaT+USE+TPS+SYS
TEMS&oq=number+of+banks+thaT+USE+TPS+SYSTEMS&aqs=chrome..69i57.
20727j0j7&sourceid=chrome&ie=UTF-8#q=NO+OF+BANKS+IN+WORLD