Transaction Processing Systems

Transaction Processing Systems

These are information systems carry out the

seven processes with regards to the
transactions of an organisation.
A transaction occurs when goods and services are
exchanged for some form of payment.
 Transaction Processing Systems

ACID is the acronym for the four properties

A tomicity-the transaction starts and each step

must be completed or it will be undone.
C onsistency-data is agreed upon, remains in
a consistent state and is accounted for.
I solation-treats each transaction separately
and keeps data from each transaction
separate.
D urability-the data should continue to exist.
Transaction Processing Systems

characteristics of transaction processing systems

There are two types of TPS:

Batch processing and Real Time processing.

Batch Processing transactions is the processing as the

collection/storage of data at the time of the event with
actual updating of the database later when it is
scheduled or there is enough data.

An example may be the accounts which are not able to

be easily stored and updated due to the amount and
type of data used. Examples of this may be a telephone
account, which accumulates over a period of time.
Transaction Processing Systems

characteristics of transaction processing systems

Batch processing : (compared to real time)

Advantages:
• Control over time of processing;
• Standardisation;
•Reduced setup and processing costs
Disadvantages:
• Errors corrected after the
processing of data;
•Time delay in gathering data, storing and bulk
processing;
• Operational costs may increase;
• Only identical data is processed in one batch.
Transaction Processing Systems

characteristics of transaction processing systems

Real time transaction processing as the immediate

processing of data with the database updated as
the transaction is being carried out.

An example may be the Bank ATM and POS

terminal, both of which have user input which
requires immediate feedback.
Transaction Processing Systems

characteristics of transaction processing systems

Real time transaction processing: (compared to batch)

Advantages
• Transaction response time is quick if not immediate;
• Data is processed as demanded;
• Error correction can be immediate.
Disadvantages
• Standardisation may not exist or
may be more difficult;
• Processing needs make control
difficult;
• System hardware an d software is
expensive;
Transaction Processing Systems

characteristics of transaction processing systems

Data validation is a process that ensures that the

correct type and valued data is input into a system.

There are two types involved in TPS:

1.Transaction Initiation-provides correct steps of

access. (verification)
2.Field Checking-ensures correct data type is
used b y checking entered data by type
required.
(com parison)
Transaction Processing Systems

characteristics of transaction processing systems

The significance of data validation in transaction

processing is that it will provide:

• the transaction a way of processing the

data;
• the maintains that transaction data and
information is current, accurate and up to date;
• required reports and documentation;
• increased efficiency, resulting in improved
service;
• a co mmunicative process between
provider
and client.
Transaction Processing Systems

characteristics of transaction processing systems

The historical significance of transaction processing

as the first type of information systems, was driven by
business. Business computerised manual processes
used such as collecting, recording and reporting.

Punch cards and tape drives suited batch processing.

Processing was carried out after hours mainly
concerned with payrolls.

Develo pm ents in tech nology providing greater

speed
a nd lower costs allowed Real Time processing to
be developed alongside Batch Processing.
Transaction Processing Systems

characteristics of transaction processing systems

Transaction processing is easily computerised as it is

based on clear sets of rules followed by an operator in
equivalent manual systems.

Rules are set out and must be followed step by step to

be considered as a successful transaction.

Computerisation also is able to be set up in the same

way. A TPS needs therefore, to be based on
detailed specifications, dealing with the collection of
data, in which formats and matching the operation of
the organisation.
Transaction Processing Systems
examples of transaction processing systems

The components of a transaction processing system, including:

1.users of the information system as belonging to the same
organisation that owns the transaction processing system
2.participants as the people who conduct the information
processing
3.people from the environment becoming participants in real
time systems as they directly enter transactions and perform
validation
Examples of real time transaction processing, including:
1. reservation systems; 2. point of sale terminal;3. library loans
Examples of batch processing, including:
1. clearing of presented cheques; 2. generation of bills;
3. systems that appear real time, computerising transactions as
they occur, but actual updating is processed in batch, such as
credit card transactions.
Transaction Processing Systems

storing/retrieving in transaction processing systems

Storage of data in relational and flat-file databases in

digital form as it has the ability to manipulate, store
and retrieve along with process and display with digital
technology.
Data, is for large companies collected in batched
format

Retrieval of stored data to conduct further transaction is

usually warehoused.

Sequential, indexed sequential and hashed files

generally store the data in databases.
Transaction Processing Systems

storing/retrieving in transaction processing systems

Sequential data storage are data records one after the other in
entry or key field order, header stores and field order of each
record in a data dictionary with a search completed using either
binary or linear.

Indexed sequential data storage are records stored in any order

and with a separate index file, keeping matching key field items
with the records position. This is faster, but continual updates to
index file requires two files which must be maintained.

Hashed file storage will divide the disk space into numbered
locations, with k ey field . At the time that they are divided by
the total locations a remainder is provided as storage location.
Transaction Processing Systems

storing/retrieving in transaction processing systems

data warehousing is the collection of data

from a range of data sources.
Transaction Processing Systems
storing/retrieving in transaction processing systems

transaction database for analysis-backup procedures, including:

Grandfather is the oldest backup, Father is the middle

backup, Son is the most recent backup

Incremental will only back up files that were altered

since the last full or partial backup. This saves time as
an entire data backup does not occur.

Tape is a preferred medium, which is a slow backup

process, but is cheap and is portable. This can be
a rchived for many years.
Transaction Processing Systems
storing/retrieving in transaction processing systems

transaction database for analysis- backup procedures, including:

Off-site storage is physically separated from the main

system. This is also more secure as if the main
system is damaged due to fire, the data is safe.

partial backup, or differential backup does only files

that were altered since the last full backup was
completed.

Recovery testing will backup small subsets of

files and recovering them for storage in new
Transaction Processing Systems
storing/retrieving in transaction processing systems

transaction database for analysis-backup procedures, including:

Sequential process will use tape rotation to complete

the backup procedure.

Specialised backup software permits scheduling of

unattended backup procedures, reports and
compression.
Transaction Processing Systems

Updating is different for Real time processing and for Batch processing

Real-time updating is suited to the direct access to

storage system. This system usually has a RAID hard
drives which are very reliable. Data is entry updated
onto a daily transaction file and master file with
Transaction data kept online on a master file.

There is user interface with validation fields used such

as radio buttons and pull-down menus.
Transaction Processing Systems

Updating is different for Real time processing and for Batch processing

Batch updating is suited to the use of sequential

tape-based storage systems.
Used previously along with paper records, magnetic
tape, punched cards with an offline master retained.

Record deletion was required and a complete copy was

made to a second tape, which was slow.

There m aybe a u ser in terface but was not essential.

Th e storage system very often had its own display.
Transaction Processing Systems

other information processes in transaction processing systems

Collecting in transaction processing:

hardware, including:
-MICR is used by banks as a high speed and accurate
reader of the characters that are printed on a cheque
and deposit slips using ink that has magnetised
particles. This is an example of batch processing.
-ATM is a banking terminal, which customers are able
to access to carry out common banking transactions.
This is an example of real time processing.
-Barcod e readers is a fixed or handheld device that
reads barcodes that hold details about product, price
and description. The bar code reader uses a lazer.
Transaction Processing Systems

other information processes in transaction processing systems

Collecting
data collection: MICR on cheques, barcodes, ATM,
screen-based collection
screen design: white space, grey shades, standout
colours for critical data, group related data, use
of buttons for selection, objects alignment,
minimal keying, logical order for fields.
web form collection: screen design, submit and clear
entries button, frames for consistency, resolution of
user’s screen, 216 colours, cross-platform and
browser vers ion co mpatibility, relating to both real-
time or batch processing
Transaction Processing Systems

other information processes in transaction processing systems

Analysing The output of a TPS is often the input to

other information systems.

Management Information Systems (MIS) will provide

business managers factual details of interest. These
may include reports on inventory, sales and orders

Decision Support Systems (DSSs) give people

particularly in business information that will allow
them t o make decisions. Sales data, future and
demographic trends. Data mining in particular comes
into play here.
Transaction Processing Systems
issues related to transaction processing systems
Changing nature of work and the effect on
participants, including:
–the automation of jobs once performed by
clerks
–the bypassing of clerks by people in the
environment

•manual operations are becoming automated by

technology
•work boundaries between users and participants, are
fuzzy
•employer ability to monitor performance has
social implications
•disappearance of repetitive tasks easily accomplished
Transaction Processing Systems

issues related to transaction processing systems

bias in data collection:

Data needs to be collected fairly, this means without
bias. This word bias means that the data will not give
an accurate account of a situation or of a need.

At the point of collection of a TPS such as a POS is

usually very accurate. The bias may appear when the
data is displayed. All data may not be represented.
This may become an ethical issue if this bias has
o ccurred on purpose.
Transaction Processing Systems

issues related to transaction processing systems

The importance of data in transaction processing,

including:

data security is important as data is often confidential

or has a commercial value, therefore, it needs to be
protected from unauthorised access.

data accuracy means that the data is correct and that

the data is up to date (current)

da ta integrity describes the reliability of data. This will

include statements of data currency, correct entry of
data and accuracy of the data.
Transaction Processing Systems
issues related to transaction processing systems

Control in the transaction processing commences with

collecting and the way the TPS manipulates the data.

Preparation and authorisation of the data entered needs

to be considered. The control over the TPS is vital due to
the large volume of data and the TPS usually only
provides the user with a part of the transaction process.
The TPS method of error correction is very important.

The TPS should not be the only source of information

that the busine ss op erator uses to make decisions.
Information from management information and decision
support systems need to be considered as well.