Transaction Processing

System Business Transactions are

certain events that occur routinely in a business firm.

A transaction is a set of activities occurring between 2 or more persons relating to the conduct of business, commercial or government affairs.

A transaction is an agreement between a buyer & seller to exchange asset for payment

business transactions induce 2 types of flows

Physical / Logical flow Information flow

A transaction Processing System collects & stores data about transactions and sometimes controls decisions made as part of a transaction.

Example-A sales order from a customer

Debiting customer account with value of goods.

Crediting sales file with the value of goods Updating inventory file with the quantity of

stock sold Generating docs like sales invoice, bill of

exchange etc. Packing the goods and handling them to the

delivery staff. Delivering the goods.

Transaction Modes

Batch processing

Online processing

Online Real time processing

Distributed processing

Transaction Modes Batch Processing- method of

computerized processing in which business transactions are accumulated over a period of time and prepared for processing as a single unit

On-line processing(OLTP)-method of computerized processing in which each transaction is processed immediately and the affected records are updated

Online Real time Processing

if the transaction is processed singly and as it occurs without any loss of time between event and recording of the event

Distributed Processing

Some processing power is distributed to local or regional level offices by installing computers there rather than centralizing

Batch versus On-Line Processing

Objectives of a TPS Increase labor efficiency Capture, process and store transactions and

produce output Maintain error-free data input and

processing Ensure data and information integrity Produce timely documents and reports Provide increased and enhanced service Increase customer loyalty Achieve competitive advantage

Characteristics of a TPS

Large amount of input data Large amount of output data Large storage requirements efficient processing Fast input/output capabilities High degree of repetition in processing Simple Computations Large number of users impacted by the

system If the TPS fails to operate correctly, the

impact on the organization is high

Transaction Processing Activities

Data collection Data editing Data correction Data manipulation Data storage Document production and reports

Data Collection is the process of capturing and gathering all data needed to complete one or more transactions. Can be done manually, or using devices like scanners & point-of-sale equipments like touch screens, keyboards, handhelds.

Data Editing is the process of checking data for validity and completeness.

Data Correction is the process of reentering mis-keyed or mis-scanned data that was found during the data editing.

Data Manipulation is the process of performing calculations and other data transformations like classifying data and sorting files.

Data Storage is the process of placing transaction data into one or more databases.

Transaction processing E.g.

Automatic Teller Machines use a number

of specialized computer programs to handle

bank transactions.

Order processing applications collect and

process orders from clients (mail, telephone,

staff sales is usually used). Once orders are

taken, invoicing, accounts receivable and

inventory control processing applications

are also initiated.

Bank auto-teller system

Each machine in a network is used 300 times a day

Bank has over 1000 machines Each machine handles about 200, 000

transactions About 300, 000 database transactions

in total per day

ATM system organization

Get customeraccount id

Validate card

Input

Query account

Update account

Print details

Return card

Dispense cash

Process Output

Select service

ATM Database ATM

Transaction Processing Cycle

Data Entry Input data validation Transaction Processing and validation

of results File and database maintenance Document and report generation Inquiry processing

Transaction

Occurs Enter Data

Validate input

And process

Generate o/p

Update DB

Facilitate queries

DB

Transaction Documents

Informational documents Action Oriented Documents Pre-planned reports Ad-hoc reports and inquiry responses

E.g. of OLTPS Airlines reservation System Online Security Trading Online Banking Electronic Broking