General Definition: “TPS is a type of IS that manages data created in everyday operations. This includes storing, formatting, processing, retrieving, and creating some new aggregate data”
Wikipedia Definition: “Transaction processing is a style of computing that divides work into individual, indivisible operations, called transactions. A transaction processing system (TPS) or transaction server is a software system, or software/hardware combination, that supports transaction processing”
Other Definitions: “Transaction processing systems (TPS) collect, store, modify and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system”
Simply we can say TPS/TPS is…
Wikipedia Definition: “Transaction processing is a style of computing that divides work into individual, indivisible operations, called transactions. A transaction processing system (TPS) or transaction server is a software system, or software/hardware combination, that supports transaction processing”
Other Definitions: “Transaction processing systems (TPS) collect, store, modify and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system”
Simply we can say TPS/TPS is…
- An information system designed to process routine business transactions
- Seeks time- and cost-efficiency by automating repetitive operations in large volumes
- Interfaces with an organization‘s other information systems, such as IRS, DSS, EIS
- Centers around accounting and finance transactions
- e.g. airline reservation systems, order entry/processing systems, bank‘s account processing systems
OBJECTIVE OF TPS
- Process data generated by and about transactions
- Maintain a high degree of accuracy
- Ensure data and information integrity and accuracy
- Produce timely documents and reports
- Increase labor efficiency
- Help provide increased and enhanced service
- Help build and maintain customer loyalty
- Achieve competitive advantage
MAJOR CHARACTERISTICS OF TPS
- Large amounts of data are processed.
- The sources of data are mostly internal, and the output is intended mainly for an internal audience.
- The TPS processes information on a regular basis: daily, weekly, monthly, etc.
- Large storage (database) capacity is required.
- High processing speed is needed due to the high volume.
- TPS basically monitors and collects past data.
- Input and output data are structured (i.e., standardized).
- Low computation complexity is usually evident in TPS.
- A high level of accuracy, data integrity, and security is needed.
- High reliability is required.
- Inquiry processing is a must.
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