12 ipt 0501 transaction processing systems 01
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Transaction processing systems (TPS) directly support businesses by processing transactions that create or modify organizational data. TPS have four key characteristics - they provide rapid response, are reliable, are inflexible in processing standardized data, and enforce controlled processing through access rights. There are two types of TPS - real-time systems that immediately process transactions with instant confirmation, and batch systems that collect and process transactions in scheduled batches. Real-time systems have higher costs but provide benefits like concurrency controls and atomicity to ensure complete transactions.
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- Factors like increasing computer literacy and awareness of online banking options have led to greater success of e-banking over time compared to earlier attempts. Management must address challenges to provide high quality customized online services.
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12 ipt 0501 transaction processing systems 01
- 2. • Transaction processing systems (TPS’s) are those information systems that work with the transactions of an organisation. • A transaction is an event that creates or modifies data that is stored in an information system. • TPS’s differ from other systems in that they directly support businesses. • The four important characteristics of a TPS are rapid response, reliability, inflexibility and controlled processing.
- 3. • Rapid response: Businesses require quick turnaround time. • Reliability: Organisations rely on their TPS. If it does fail quick and accurate recovery is essential. • Inflexibility: Transactions require similitude of data. Non-standard operations would lead to errors and a slower response time. • Controlled processing: The TPS should enforce the organisational operations in the manner that it allocates rights and responsibilities.
- 4. • A TPS minimises the organisation’s costs through a reduction of data handling. • This means that procedures need to be examined and data needs to be normalised. • There are two types of transaction processing: real-time processing and batch processing. • Batch processing is where all the transaction data is collected and processed at a specific time.
- 5. • Real-time processing is the immediate processing of data. • It provides instant confirmation of the transaction. • Two common examples are airline reservation systems and banking. • The two main concerns with real time processing are concurrency and atomicity. • Concurrency ensures that two users cannot change the same data at the same time.
- 6. • Atomicity ensures that all the steps involved in a transaction are completed successfully as a group. • That is, if the first step succeeds and then further steps fail the entire transaction is abandoned and the processes are rolled back. • All real time transactions have an acceptable user response time factored in. • If the user exceeds this response time then the transaction is also abandoned.
- 7. • Real time processing is more expensive than batch processing due to increased hardware and software costs. • A transaction processing monitor is software that runs in the background that allows transaction processing applications to run efficiently. • Differences between real-time and batch processing: (p.116)