This document provides an overview of transaction processing systems (TPS). It discusses that TPS are crucial for finance, banking, and e-commerce organizations as they maintain data integrity. The document outlines different types of TPS, including batch and real-time systems, and describes their functions and advantages/disadvantages. It also explains the ACID properties that TPS adhere to for transaction consistency and integrity. In conclusion, the document states that TPS provide more advantages than disadvantages for companies through abilities like competition, multiple tasks, and globalization while addressing security issues.

1. TRANSACTION
PROCESSING SYSTEMS
AN OVERALL UNDERSTANDING
YEAR 3 LSCM
NOVEMBER 28, 2018
MRS JOHNSON-DAVIS
INFORMATION TECHNOLOGY

2. MEMBERS
VANESSA NUGENT
AEISHA ROWE
ISAVO ALFARO
KEMBERLY
MIHKEL MAIZE
RICARDO THOMPSON

3. OUTLINE
INTRODUCTION OF TPS
THE CONCEPT TPS
TYPES OF TPS
FUNCTIONS OF THE TPS
ADVANTAGES AND DISADVANTAGES OF TPS
THE ACID PROPERTIES OF TPS
CONCLUSION

4. OVERVIEW OF TPS
• TRANSACTION PROCESSING SYSTEMS ARE CRUCIAL TO THE OPERATION OF MOST
FINANCE, BANKING AND ELECTRONIC COMMERCE ORGANIZATIONS.
• TRANSACTION PROCESSING IS PRIMARILY CONCERNED WITH MAINTAINING DATA
INTEGRITY.
• SUCH SYSTEMS CAN OPERATE AT THE SINGLE DATABASE LEVEL, BUT THEY ALSO
OPERATE AT HIGHER LEVELS WHERE DATA IN MANY DATABASES AND EVEN MANY
DIFFERENT SYSTEMS IS INVOLVED. FOR EXAMPLE TRANSFERRING FUNDS FROM ONE
FINANCIAL INSTITUTION TO ANOTHER.

5. EXAMPLES OF TPS
• ATM MACHINES
• PAYROLL SOFTWARE
• RESERVATION SYSTEMS
• POINT OF SALE TERMINAL
• LIBRARY LOAN SYSTEMS
• BILL GENERATION
• CREDIT CARD SALE
TRANSACTIONS

6. THE CONCEPT TPS
• A TRANSACTION PROCESSING SYSTEM (TPS) IS A TYPE OF INFORMATION
SYSTEM THAT COLLECTS, STORES, MODIFIES AND RETRIEVES THE DATA
TRANSACTIONS OF AN ENTERPRISE OR LARGE BUSINESS.
• THE NEED TO HANDLE HUNDREDS, EVEN THOUSANDS OF SIMULTANEOUS
USERS. PAYMENT PROCESSING AND RESERVATIONS
• THE NEED TO ALLOW MANY USERS TO WORK ON THE SAME SET OF DATA,
WITH IMMEDIATE UPDATING. ONLINE ORDERS
• THE NEED TO HANDLE ERRORS IN A SAFE AND CONSISTENT MANNER.

7. PLACES THEY ARE
USED
• BANKS
• ONLINE SHOPPING
• GAS STATIONS
• RETAIL SHOPPING
• CAR DEALERS
• LIBRARIES
• AIR PORTS
• ATM MACHINES

8. TRANSACTION
PROCESSING
SYSTEM
FUNCTIONS

9. TYPES OF TPS
BATCH TPS
• TRANSACTIONS ARE ACCUMULATED OVER A PERIOD
OF TIME AND PROCESSED AS A SINGLE UNIT.
• BATCH SYSTEM, HIGH VOLUME OF DATA, SEPARATE
INPUT AND OUTPUT SYSTEMS.
• SOFTWARE USED TO SEND OUT PAYROLL AND
BILLING STATEMENTS.
• BANKS, HUMAN RESOURCE DEPARTMENTS AND
STORES
REAL TIME TPS
• TRANSACTIONS ARE PROCESSED IMMEDIATELY AS
THEY OCCUR FAMILY.
• THEY PROCESS REAL TIME TRANSACTION IN A
SINGLE TRANSACTION.
• IN NEAR INSTANT TRANSACTION.
• ATM MACHINES, RESERVATION SYSTEMS, LIBRARIES
AND CUSTOMER SERVICE PORTALS.

10. BATCH TPS
ADVANTAGES
• REPEATED JOBS DONE QUICKLY
• ABILITY TO WORK OFFLINE
• CAN SCHEDULE WHEN
TRANSACTIONS OCCUR
• MULTIPLE USERS
DISADVANTAGES
• COMPUTER OPERATORS MUST BE
TRAINED
• DIFFICULT TO DEBUG
• COSTLY
• ERRORS

11. REAL TIME TPS
ADVANTAGES
• MAXIMUM CONSUMPTION
• TASK SHIFTING
• ERROR FREE
• 24-7 SYSTEM
DISADVANTAGES
• LIMITED TASKS
• LOW MULTI TASKING
• EXPENSIVE
• DIFFICULT PROGRAMING
REHMAN, 2012

12. TRANSACTION PROCESSING SYSTEM
ADVANTAGES
• ABILITY TO COMPETE
• MULTIPLE TASK
• GLOBALIZATION
DISADVANTAGES
• SECURITY ISSUES
• DOWN TIME
• OPERATION HANDLING

13. SOLUTIONS TO TPS PROBLEMS
PASSWORDS
AND PINS
ENCRYPTION FIREWALLS UPDATE
SYSTEMS
PCI
COMPLIANCE

14. QUALIFIERS
ACID IS AN ACRONYM FOR ATOMICITY, CONSISTENCY, ISOLATION AND DURABILITY. THE
AIM IS TO ENSURE ALL TRANSACTIONS COMPLY WITH THESE FOUR PROPERTIES. THEY
ENSURE THAT:
• TRANSACTIONS ARE NEVER INCOMPLETE (ATOMICITY), THE DATA IS NEVER
INCONSISTENT.
• (CONSISTENCY), TRANSACTIONS DO NOT INTRUDE OR AFFECT EACH OTHER (ISOLATION)
• THE RESULTS OF A COMPLETED TRANSACTION ARE PERMANENT (DURABILITY).
• ALL THESE PROPERTIES COMBINE TO ENSURE THE INTEGRITY OF ALL DATA IS
MAINTAINED BEFORE, DURING AND AFTER EACH TRANSACTION

15. SUMMARY OF TRANSACTION PROCESSING
SYSTEM

16. CONCLUSION
• TPS HAS MORE ADVANTAGES TO A COMPANY THAN
DISADVANTAGES
• SECURITY MEASURES
• GLOBALIZATION

17. REFERENCES
• REHMAN, J.(2012). WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF A
BATCH PROCESSING SYSTEM. RETRIEVED ON NOVEMBER 20,2018, FROM
HTTP://WWW.ITRELEASE.COM/2012/12/WHAT-ARE-ADVANTAGES-AND-DISADVANTAGES-OF-BATCH-
PROCESSING-SYSTEMS/
• REHMAN, J.(2012). WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF A
REAL TIME PROCESSING SYSTEM. RETRIEVED ON NOVEMBER 20,2018,
FROMHTTP://WWW.ITRELEASE.COM/?S=WHAT+ARE+ADVANTAGES+AND+DISADVANTAGES+OF+REAL
+TIME+PROCESSING+SYSTEMS

18. REFERENCES