Characteristics of transaction processing system

A transaction processing system (TPS) is a system that captures, enters, stores, retrieves, and processes the relevant details of business events and generates the information and documents necessary for running the business.

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

Transaction Processing System

Transaction Processing System is a form of data base management system that processes business transaction. The system captures and processes data from day to day business activities.

Examples of Transaction Processing are payroll, inventory, order processing, reservations, account processing in banks and stock trading. The systems are typically processed in real time, in which data is updated as the transactions are entered into the system.

The software environment of most large scale Transaction Processing System is based on transactional middleware, which helps knit together many software components.

These components include front-end applications to drive web browsers and other devices, middle-tier applications to route request to the server that can run them and server applications that execute business logic.

There are two primary categories of Transaction Processing System are order processing system and purchasing system.

An order processing system supports the sales of goods or services to customers and arranges for shipments of products. A purchasing system supports the purchase of goods and raw materials from suppliers for the manufacturing of products.

Most of an organization’s reports are generated from Transaction Processing System databases. Transaction Processing System identify, collect and organize the fundamental information from which an organization operates.
Transaction Processing System