Transaction Processing Systems

UNIT II
Transaction Processing Cycle

 Data Entry Activities

 Transaction Processing Activities
 File and Database Processing
 Document and Report Generation
 Inquiry Processing
Transaction Processing System

Data Entry Transaction Processing Document

and
Report Generation

File and Database Inquiry Processing

Processing
Data Entry Activities

 Data is captured and collected by recording,

coding and editing activities
 Traditional Data Entry
– People Involved
– Get data, Edit it and batch it, key it into computer
then sort and store.
– Disadvantages : Too costly, Increases potential
errors, Too many activities, many people and
media involved.
Data Entry Activities

 Source Data Automation

– From source that generates data
– By using machine readable media
– Optical Scanning, MICR, Light Pens, Voice Input,
Touch Screen
 Electronic Data Interchange (EDI)
– Complete Automation
– From start till information is got.
– For eg. Orders put up in internet and customers fill in
data that is fed into the Sales TPS and then
processed
Transaction Processing Activities

 Batch Processing
– Process
 GatherSource Data
 Record data and input
 Sort
 Update Master file

– Advantages : Efficiency, Economy, Control

– Disadvantages : Frequently out-of-date Master file
Transaction Processing Activities

 Real Time Processing

– Processing as soon as transaction gets over
 Levels of Systems
– Inquiry / Response Systems (Information Retrieval)
– Data Entry Systems (PoS)
– File Processing Systems (Collect, Convert,
Manipulate and Store (no output))
– Full Capability Systems (Eg. Indian Railways
Ticketing)
– Process Control Systems (Full Capability + Control
(uses info output to control))
Transaction Processing Activities

 RealTime Processing
 Advantages
– Immediate Updation
 Disadvantages
– Security
– Cost
File and Database Processing

 Maintenance Activities : Correct and Update

Information

Inquiry Processing
 Interrogation of Online files and database by
end users
 Eg. Getting Account Information
Document and Report Generation

 Action Documents
– Initiate actions / transactions
 Information Documents
– Relate, Confirm or Prove that transactions
occurred
 Turnaround Documents
– Returned back to the sender
Attributes of Information Quality

 Time Dimension
– Timeliness (provided when needed)
– Currency (up-to-date when provided)
– Frequency (as often as needed)
– Time Period (info about past, present and future
time periods)
Attributes of Information Quality

 Content Dimension
– Accuracy (free from errors)
– Relevance (related to needs)
– Completeness (all info is provided)
– Conciseness (info needed alone is provided)
Attributes of Information Quality

 Form Dimension
– Clarity (easy to understand form)
– Detail (in detail or summary form)
– Order (in predetermined sequence)
– Presentation (numeric, graphic, narrative)
– Media (as required [printed paper, video displays,
disks, etc.])
Information Reporting System

 Produce information products (reports and

documents) that support day-to-day decision
making
 Information Reporting Alternatives :
– Periodic Scheduled Reports
– Exception Reports (specific conditions)
– Demand Reports and Responses
Executive Information Systems

 Information Reporting Systems + Decision

Support Systems
 For Strategic Planning and Control
 Much of top management information comes
from non-computer sources
 Now computer-based EIS developed – easy
to operate and understand
Executive Information Systems

 Tailoredto the preferences of the executives

 Use of Graphics
 Get detailed information in areas of interest
to them