TPS are aimed at improving the routine business activities on which all organizations depend.
A transaction is any event or activity that affects the organization which occur as part of doing business, such as sales, purchases, deposit, withdrawals, refunds and payments. A transaction is the action that an entity performs beyond itself, i.e., on another entity.
Hence a transaction, at the simplest level, can be defined as an event involving the action of one entity on another.
Common transactions include placing orders, billing customers, hiring employees, and depositing cheques.
The 4 characteristics of TPS include:
*Rapid Response = Fast performance with a rapid response time is critical.
*Reliability = Failure rate must be very low
*Inflexibility = a TPS wants every transaction to be processed in the same way regardless of user. If TPS were flexible there would be too many opportunities for non-standard operations (less consistency).
*Controlled processing = the processing in a TPS must support an organisation’s operations.
Characteristics of transaction processing system
