Characteristics of transaction processing

systems
Transaction processing systems (TPSs) collect, store, modify and retrieve the
transactions of an organisation. A transaction is an event that generates or modifies
data that is eventually stored in an information system. Some examples of TPSs are
selling goods using a point-of-sale (POS) system, processing credit card payments, or
maing a motel reservation.
TPSs differ in character from other types of information systems in that they directly
support !usiness operations. They must !e designed in con"unction #ith the
organisation$s procedures. The transaction data o!tained from a TPS is stored in an
information system and processed using a range of application soft#are. %t usually
involves updating a data!ase to reflect changes to the transaction data.
The main information processes of a TPS are collecting and storage. %f a TPS is used
to record a sale and generate a receipt, the transaction data is collected at the POS
terminal and then stored using an online data!ase. The four important characteristics of
a TPS are rapid response, relia!ility, inflexi!ility and controlled processing.
& Rapid response. 'ast performance #ith a rapid response time is critical.
(usinesses cannot afford to have customers #aiting for a TPS to respond. The
turnaround time from the input of the transaction to the production of the output
must !e a fe# seconds or less.
& Reliability. )any organisations rely heavily on their TPS. A !reado#n #ill
disrupt operations or even stop the !usiness. 'or a TPS to !e effective, its failure
rate must !e very lo#. %f a TPS does fail, then *uic and accurate recovery must
!e possi!le. This maes #ell-designed !acup and recovery procedures
essential.
& Inflexibility. A TPS #ants every transaction to !e processed in the same #ay
regardless of the user, the customer or the time of day. %f a TPS #ere flexi!le,
there #ould !e too many opportunities for non-standard operations. 'or
example, a commercial airline needs to consistently accept airline reservations
from a range of travel agents. Accepting different transaction data from different
travel agents #ould !e a pro!lem.
& Controlled processing. The processing in a TPS must support an
organisation$s operations. 'or example, if an organisation allocates roles and
responsi!ilities to particular employees, then the TPS should enforce and
maintain this re*uirement.
A TPS minimises the organisation$s costs !y reducing the num!er of times that data
must !e handled and !y providing timely updates to the data!ase.There are t#o types
of transaction processing+ !atch transaction processing and real-time transaction
processing
Excerpt from HSC IPT Text, Powers, pg 113