Transaction Processing Systems Overview

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a key function of transaction processing systems (TPSs)?

Designing marketing strategies

Forecasting future sales trends

Capturing and processing detailed data (correct)

Creating high-level strategic plans

Which of the following is NOT typically included in transaction processing systems?

General ledger

Accounts receivable

Marketing analysis (correct)

Inventory control

Which business function is commonly associated with transaction processing systems?

Human resources management

Order entry (correct)

Strategic planning

Product design

What essential input do transaction processing systems provide to management information systems?

Detailed operational data Signup and view all the answers

Which of the following systems benefits from the implementation of a transaction processing system?

Knowledge management systems Signup and view all the answers

What is one of the objectives of implementing an enterprise resource planning system?

To integrate various business functions Signup and view all the answers

What type of data do transaction processing systems primarily update?

Operational records Signup and view all the answers

In which process is a transaction processing system regularly utilized?

Daily payroll processing Signup and view all the answers

What is the primary goal of an enterprise system?

To reduce costs and improve customer service Signup and view all the answers

Which of the following areas do businesses rely on enterprise systems for?

Sales and marketing Signup and view all the answers

What does enterprise resource planning (ERP) primarily manage?

Business operations across an entire organization Signup and view all the answers

One significant advantage of ERP systems is the:

Improvement of access to quality data for decision making Signup and view all the answers

Which of the following is NOT a characteristic of a business process?

Involves random and unstructured tasks Signup and view all the answers

Which problem is typically addressed by implementing an ERP system?

Elimination of costly and inflexible legacy systems Signup and view all the answers

Large organizations were the first to adopt which of the following?

Enterprise resource planning (ERP) systems Signup and view all the answers

What is one intent of having an enterprise system for business operations?

To ensure information sharing across business functions Signup and view all the answers

What is the essential characteristic of a batch processing system?

Transactions are accumulated and processed later. Signup and view all the answers

Which option is a feature of online transaction processing (OLTP)?

Data reflects the current status at any time. Signup and view all the answers

How do organizations expect their Transaction Processing Systems (TPS) to support customer service?

By producing timely user responses and reports. Signup and view all the answers

What is one of the primary objectives of using a Transaction Processing System?

To achieve competitive advantage. Signup and view all the answers

Which of the following is NOT a responsibility of a Transaction Processing System?

Processing transactions without any user verification. Signup and view all the answers

What advantage do organizations gain from implementing OLTP systems?

Ability to provide faster and more efficient service. Signup and view all the answers

Which is a fundamental expectation from Transaction Processing Systems?

They should ensure data is processed accurately and completely. Signup and view all the answers

What type of processing allows immediate transaction updates?

Online transaction processing (OLTP). Signup and view all the answers

What is the main purpose of Customer Relationship Management (CRM) systems?

To manage and analyze customer interactions Signup and view all the answers

Which statement about mobile devices and shopping is accurate?

They enable customers to compare products easily. Signup and view all the answers

What is an essential feature of Product Lifecycle Management (PLM) software?

Overseeing various phases of a product's lifecycle Signup and view all the answers

Which of the following aspects is NOT typically included in PLM software?

Financial forecasting Signup and view all the answers

How do savvy retailers utilize CRM systems in the context of social media?

To analyze customer experiences shared online Signup and view all the answers

What benefit do mobile-enabled CRM systems provide to retailers?

Access on-the-go to customer data Signup and view all the answers

What does Product Lifecycle Management aim to achieve?

Create a common repository of product information Signup and view all the answers

What challenge do retailers face due to the popularity of mobile devices?

Instant access to customer feedback via social media Signup and view all the answers

What is the primary purpose of computer-aided design (CAD)?

To create, analyze, and modify product designs Signup and view all the answers

What function does computer-aided manufacturing (CAM) serve?

It controls machinery used in manufacturing processes. Signup and view all the answers

Which of the following is NOT a benefit of implementing an enterprise system?

Increased operational costs Signup and view all the answers

Which software is primarily used for analyzing the robustness of components?

Computer-aided engineering (CAE) Signup and view all the answers

Which component is focused on the manufacturing process in product lifecycle management?

Computer-aided manufacturing (CAM) Signup and view all the answers

What should an organization ideally have to support its daily activities?

Integrated information systems that improve operations Signup and view all the answers

What aspect does computer-aided engineering (CAE) primarily involve?

Analyzing performance and robustness of designs Signup and view all the answers

What is a possible outcome of implementing a highly integrated set of systems in an organization?

Heightened business benefits Signup and view all the answers

Study Notes

Transaction Processing Systems (TPS)

Capture and process detailed data for updating an organization's records
Include vital business operations such as order entry, inventory control, payroll, accounts payable, accounts receivable, and general ledger.
TPS output is valuable input for management information systems, decision support systems, and knowledge management systems.

Traditional Transaction Processing Methods

Batch Processing System: Transactions are accumulated over a period of time and then processed as a single unit. This method leads to a delay between the event and the processing of the transaction for updating the records.
Online Transaction Processing (OLTP): Transactions are processed immediately, ensuring data reflects the current status at any given time.

Objectives of Traditional Transaction Processing Methods

Capture, process, and update databases accurately and completely
Prevent fraudulent transactions
Provide timely user responses and reports
Reduce clerical and labor requirements
Enhance customer service
Achieve competitive advantage

Enterprise Systems

An enterprise system is central to various individuals and organizations of all sizes
Supports the running and managing of businesses by sharing information across all business functions and management levels
Ultimately focuses on satisfying customers by reducing costs and improving services
Supports daily activities in areas like product supply and distribution, sales and marketing, human resources, manufacturing, accounting, and taxes.

Enterprise Resource Planning (ERP)

A set of integrated programs that manage a company's vital business operations for an entire organization
Focuses on standardizing and improving an organization's business processes
Provides a single, integrated view of the business to various organizational functions

Advantages of ERP

Improved access to quality data for informed decision-making
Elimination of costly and inflexible legacy systems
Enhancement of work processes
Opportunity to upgrade and standardize technological infrastructure

Customer Relationship Management (CRM)

A system that focuses on improving business relationships with customers
Helps organizations identify, attract, and retain customers
Leverages customer data to enhance customer satisfaction
Implements various customer service and support channels
Uses information to improve marketing campaigns and product development efforts

Product Lifecycle Management (PLM)

Creates a common repository of product information and processes
Supports collaborative creation, management, dissemination, and use of product and packaging information
PLM software manages data and processes associated with various phases of a product's lifecycle
The scope of PLM software can encompass computer-aided design (CAD), computer-aided engineering (CAE), and computer-aided manufacturing (CAM).

Computer-Aided Design (CAD), Engineering (CAE), and Manufacturing (CAM)

CAD: Uses software to assist in creating, analyzing, and modifying the design of a component or product
CAE: Uses software to analyze the robustness and performance of components and assemblies
CAM: Utilizes software to control machine tools and related machinery in the manufacturing of components and products

Summary

Organizations need systems that support both routine daily activities and add value to products and services
Implementing an enterprise system builds a highly integrated network improving business operations

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers the fundamentals of Transaction Processing Systems (TPS), including traditional processing methods like batch and online transaction processing. It delves into how TPS capture and process data to support business operations and the integrity of organizational records.