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Editor's Notes

• #2: Definition: “ A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise.” (Reference: Source #1) Almost all organizations, regardless of their industry, need a TPS. It ensures that customers' order are met on time, which makes it vital for the success of a business. Information processed by TPS is usually stored in a database. Examples include POS (Point of Sale devices), ATM machines TPS supports other information systems such as DSS and MIS. If the TPS shuts down, other information systems may not operate. References: http://www.docstoc.com/docs/1024659/Transaction-Processing-System http://www.scribd.com/doc/9657422/Transaction-Processing-System-TPS
• #3: Features of Transaction Processing Systems Rapid response Reliable: available backup options Inflexible – treats every transaction equally. Controlled processing – Can be manually configured to have specific roles for a specific request
• #4: Types: TPS can be categorized in two types: Internal & External, Realtime and Batch Transactions Internal transactions: Transactions that occur between departments in the organization itself External transactions: Transactions that occur between the organization and external sources such as sales and purchases between other organizations, suppliers, or customers. Real-time processing: Is when the transaction is recorded as it occurs and data is managed instantly. As in ATM machines. Batch processing: Is when all information is collected and processed together at a later time. It is used when time delay is not an important aspect. i.e: cheques Batch processing is used in organizations with limited resources.