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“Information systems that collect, store, modify and retrieve records of transactions are transaction processing systems. A transaction is an event that generates or modifies data that is eventually stored in an information system. Transaction processing systems meet record keeping and event tracking needs. TPS’s are all to do with business, money and most importantly assure and register the daily venture of a company. Its’ focus is on the processes of storing and retrieving, collecting and analyzing. Typical examples of such systems would be Airline Reservation Systems, Banking Systems, or the Accounting System of almost any large company.

Four important characteristics of a TPS are:

  • Rapid Response
  • Reliability
  • Inflexibility
  • Controlled Processing

Components of a TPS

Hardware, software and people are the components of TPS.  People are which to be most considered among the three. Without people, the system does not have a person that will purchase a commodity and without a person that will purchase a commodity it does not have an execution to perform. People in a TPS can be divided into 3 categories: users, participants and people from the environment.

  • Users: The users are the one who own the TPS in a company. They will not enter data themselves but will use it to provide information about the system. The information they will render from the TPS may be used to produce inputs for other information systems such as stock control, marketing etc…
  • Participants: Participants are the system’s direct user. They will be the one who will enter data. They include data entry operators, customer service operators, people working at checkouts and anyone carrying out the tasks demand to process the data.

People From The Environment: These are people off the street who sometimes need the services of a TPS as they inscribe transactions and authenticate data such as a customer withdrawing money from an ATM. They do not literally do the undertaking for the company.

Reference: [TPS05]            Transaction Processing System (2005). ‘Bettscomputers’. http://bettscomputers.com/moodle/course/view.php?id=40HYPERLINK “http://bettscomputers.com/moodle/course/view.php?id=40&topic=all#ComponentsofaTPS”&HYPERLINK “http://bettscomputers.com/moodle/course/view.php?id=40&topic=all#ComponentsofaTPS”topic=all#ComponentsofaTPS

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