1. Transaction Processing Systems

2. Defining a TPS
A TPS collects, stores, modifies and retrieves the transactions of an organisation

3. Characteristics of a TPS
Rapid response – fast performance with rapid results
Reliability – well designed backup and recovery with a low failure rate
Inflexibility – treat every transaction equally
Controlled processing – maintain specific requirements for the roles and responsibilities of different employees.

4. Batch Processing in a TPS
Batch transaction processing collects the transaction data as a group (batch) and processes it at a later time eg cheque clearance or generating pay cheques.

5. Real-Time Processing in a TPS
Real-time transaction processing is the immediate processing of data eg-airline reservation systems or banking transaction systems

6. Transaction processing monitor
A TP monitor is software that provides a standard interface between the input devices, the transaction processing application programs and the DBMS. It also provides data security and is an important part of real-time processing.

7. Real-Time vs. Batch Real-time: Each transaction is unique
Cheaper
Transactions must have similar inputs and outputs
Any error is not immediately detected
Easier to maintain
Less IT required
Real-time:
Each transaction is unique
Requires master file to be readily available
Has fewer errors as data is entered and validated immediately
More computer operators required

8. Data validation
Involves procedures to ensure that transactions are correct and have been accurately stored in the database
Although essential, it is impossible to validate all the data as some errors are very difficult to detect eg typing ‘1986’ instead of ‘1987’

9. Manual transactions
Manual transaction systems are business systems which operate without an information system (i.e. no computers). They have been around for thousands of years. The earliest writings are Sumerian business receipts on clay tablets which are around 5 thousand years old. But of course people still keep manual transaction records.

10. Manual transactions
You probably keep receipts for goods that you buy. You may keep these for tax reasons or for warranties but either way they are transaction records
Until recent times many records were still stored in account books. This required bookkeepers to balance the accounts -These are the manual equivalent of spreadsheets

11. Manual Transactions
Transferring paper based records into an electronic system has many benefits including:
customers can purchase goods at their convenience
it is easy to do stock takes
reduced wage costs
Whatever the peripheral benefits computerization of a manual system will aim to maximize profits.

12. Manual Transaction Systems
A manual transaction system is a business system that operates without the use of machines
People record the data and perform stock takes to check for misplaced/stolen money or stock
Computerisation provides significant benefits as it is faster, more affective and provides relevant information for the business.

13. Components of a TPS
Users – a main feature of a TPS, they often take the data provided by it and use it in another information system
Participants - people who conduct the information processing, success or failure is dependant on them
People from the environment become participants when they directly enter transactions and perform validation eg withdrawing money from an ATM

14. Examples of TPSs Real-Time Batch Reservation systems POS terminals
Library loan systems
Batch
Cheque clearance
Bill generation
Credit card sales and transactions

15. Storing and Retrieving – Databases
A database is an organised collection of data. There are three structures:
Hierarchical Network Relational

16. Important Database Features
Real-time TPS databases should have:
Good data placement
Short transactions
Real-time backup
High normalisation
Archiving of historical data
Good hardware configuration

17. File Types in a TPS Master file Transaction file Report file Work file
Program file

18. Data Warehousing
A data warehouse is a database that collects information from different data sources. Data has to be:
Consolidated
Subject-oriented
Historical
Read-only

19. Backup and Recovery
A backup is another copy of data that could be used to rebuild the system, if failure occur
Recovery of a database involves:
The backup
Journal
Checkpoint
Recovery manager

20. Grandfather-Father-Son
A backup procedure that refers to at least three generations of backup master files
Commonly used with magnetic tape
If the TPS fails, the first generation backup is used (son) to recover it, if this is also corrupted the next generation is used (father) and so on

21. Updating data In a batch: Real-time Involves sequential access
Most common medium is magnetic tape
Real-time
Involves direct access
Can be stored on magnetic disk, CD, hard disk and others

22. Collecting data in a TPS
Hardware
MICR (magnetic ink character recognition)
ATM
Barcode readers
Forms
On-screen forms
Web forms

23. Analysing data from a TPS
Done as input in other information systems including:
DSSs, decision support systems
MISs, management information systems

24. Issues Related to TPSs Nature of work is changing Bias free data
Automation of jobs
People as participants
Bias free data
Data security
Data accuracy
Data integrity (the ACID test)

25. The ACID Test
Atomicity – all steps involved in a transaction are completed as a group
Consistency – database is successfully transformed from one state to another
Isolation – simultaneous transactions don’t interfere with each other’s database updates
Durability – all changes to the database are permanent when the transaction is committed.

26. Collecting data Bar-code readers EFT- POS devices Cash registers
Web forms

27. Organising
DBMS – sort and organise all the data from the transactions from the internet, different terminals and stores

28. Analysing
DSS – using data mining to determine relationships and patterns in product sales at stores
MIS – assist managers in generating stock inventories, payrolls, orders and budgets.

29. Storing and Retrieving
Data should be stored on-site with backups both on-site at each store as well as off-site at the head office mainframe computer
Hard disks, floppy disks, CDs and/or other storage media should be used

30. Processing
Backups should be done using the grandfather-father-son method updated at least two times per day
Transaction journals should be kept for web sales as well as each terminal for system recovery and to track down any missing or stolen money.

31. Transmitting and Receiving
Each terminal at each store should be connected to the mainframe in that store in a LAN
Each mainframe at each store should be connected to the mainframe at the head office as well as the internet for web transactions in a secure WAN

32. Displaying Each terminal needs a printing device for customer receipts
A user-friendly web interface for internet transactions

33. Implementation
A new system can be implemented in several different ways:
Direct conversion Phased conversion
Parallel conversion Pilot conversion
Old
New
New
Old
Old
Old
Old
New
New
Old
New
New

34. Social and Ethical Issues
Every customer has a right to their own privacy and details stored such as credit card number, name and address have to be secure
The implementation of a new TPS would require staff to be skilled in different areas
Transaction data has to be secure during transmission to the mainframe as well as while stored

35. Transaction Processing system
QUIZ

36. 1. Which of these is not an important characteristic of a TPS
Reliability
Rapid response
Flexibility
Controlled processing

37. 2. Real-time processing is:
Cheaper than batch
Faster than batch
Not real at all
Used in bill generation

38. 3. Which of the following is not a component of a TPS:
Users
Participants
People from environment
Data mining

39. 4. Which is not an example of a TPS:
POS terminal
Airline reservation system
Library loan system

40. 5. In a manual transaction system:
People record the data and perform stock takes
Robotic arms perform manual labour
People operate computers and machinery
There is no data

41. 6. The five basic file types in a TPS are:
Master file, slave file, teacher file, child file and print file
Terminal file, processing file, master file, slave file and backup file
JPEG, GIF, PGF, PNG and PSD
Master file, transaction file, report file, work file and program file

42. 7. The ACID test involves:
The Atomic Composition of Information Databases
Testing the chemical properties of storage media in TPSs against sulphuric acid
The Atomicity, Concurrency, Isolation and Dataframe
The Atomicity, Consistency, Isolation and Durability

43. 9. Recovery of a database involves:
The backup, journal, TP monitor and operating system
The backup, journal, checkpoint and recovery manager
Travelling back in time to a point where the database was functional
The storage of backups off-site
ANSWER

44. 10. Which of these is not a database structure:
Relational
Hierarchical
Architectural
Network