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Chapter 2: Review of Related Literature

2.1.1.   Transaction Processing System

2.1.    Related Articles

“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. [TPS05]

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.

2.1.2. Transaction Processing System

One of the exclusive domains of mainframe computers were transaction processing system. The different typical examples of this system are the Airline Reservation Systems, Banking Systems, and Accounting Systems of almost any large companies. Transaction Processing Systems are mostly unidentified to the world of personal computers because of this.

But because of the Internet, all of this is about to change harshly. Nowadays, many of the small companies, non-commercial organizations, and even private individuals are discovering applications that can benefit from a transaction processing system. [TPS96]

The main problems addressed by Transaction Processing Systems are:

  • the need to handle hundreds, even thousands of simultaneous Users
  • the need to allow many Users to work on the same set of data, with immediate updating
  • the need to handle errors in a safe and consistent manner

2.1.3 Transaction Processing System

A transaction processing system is composed of at least one transaction terminal which means that it can receive characteristic data from a user. In this scenario, a characteristic data is required to produce a characteristic image that is joined with the user. Examples of which is a image of the user’s signature from data stored in a data processing system and the logic for producing a transaction message by combining transaction data with the characteristic data in such a way that the transaction data is required to get back the characteristic data from the message.

A type of computer processing that is responding immediately to user requests is referred as the Transaction Processing System. Each of this requests are considered to be called as transactions. One of the examples of this system is an automatic teller machine.

However, Transaction Processing System has an opposite which is called a Batch Processing. In this type of processing system, a batch of user requests is stored and they can be executed all at one time. Interaction with user is required in a Transaction Processing while in a Batch Processing, it doesn’t mind if a user is present or not. [TPS97]

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