Transaction Processing Systems Overview

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

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.