Transaction Processing System .pdf

GROUP 2 TRANSACTION PROCESSING SYSTEM I T A P P L I C A T I O N T O O L S I N B U S I N E S S 01 GROUP 2 WHAT IS TRANSACTION PROCESSING...

GROUP 2 TRANSACTION PROCESSING SYSTEM I T A P P L I C A T I O N T O O L S I N B U S I N E S S 01 GROUP 2 WHAT IS TRANSACTION PROCESSING SYSTEM ? Transaction Processing System (TPS) is type of data management information-processing software used during a business transaction to manage the collection and retrieval of both customer and business data. Reference: https://www.ibm.com/topics/transaction-processing-system 02 GROUP 2 FUNCTIONS OF TRANSACTION PROCESSING SYSTEM 1.System Runtime Functions - Basic functions associated with the purpose of processing a transaction while maintaining data integrity, availability and security— all with fast response times and high transaction throughput. 2.System administration functions - Functions associated with system administration, such as the configuration, monitoring and management of the TPS. 3.Application development functions -To better suit the particular business application, a modern TPS offers customization features to access data, perform intercomputer communications and design and manage unique user interfaces. 03 GROUP 2 TYPES OF TRANSACTION PROCESSING SYSTEMS 01 Batch processing 02 Real-time processing Batch transaction processing These systems offer an methods collect transactions immediate response which make over a set period of time and point of sale (POS) transitions, process them all at once in online purchases and reservation scheduled intervals. systems possible. 04 GROUP 2 COMPONENTS OF TRANSACTION INFORMATION SYSTEM 01 INPUT 02 PROCESSING SYSTEM Original requests for products The processing unit within the TPS or transactions are entered into is responsible for interpreting the the system. input data, ensuring its accuracy, and executing appropriate actions Input typically Includes: based on the type of transaction. Invoices Bills Coupons Custom Orders 05 GROUP 2 03 STORAGE This database contains information on distinct aspects, such as customers, products, employees, and financial transactions, providing a centralized repository for crucial data management. 04 OUTPUT Once the input has been processed, the TPS produces an output representing the outcome of the transaction. 06 GROUP 2 TRANSACTION INFORMATION SYSTEM BENEFITS 01 INCREASE TRANSACTION SPEADS With a TPS in place, businesses can effectively increase the speed of each transaction to minimize wait times for customers. Some systems process transactions in real- time, while others collect transaction information during a set period and then process it at a later time, often after business hours. 02 IMPROVE COST EFFICIENCY A TPS can potentially conduct and organize thousands of transactions throughout the day. This can save a company money by reducing the need to upgrade the system or use more than one system to meet demand. 07 GROUP 2 03 IMPROVE RELIABILITY Using a TPS can ensure that you process customer transactions quickly and accurately. A reliable TPS can also help your organization save money on potential troubleshooting or coding costs for malfunctioning systems. 03 AUTOMATED MANAGEMENT ATPS automates much of a company’s internal resource and revenue management. By increasing automation, employees can spend less time reviewing transactions. Automation is an important part of increasing the profitability of a business because it offers employees more time to focus on engaging tasks that require critical thinking. 08 GROUP 2 DRAWBACKS OF TRANSACTION PROCESSING SYSTEMS System Overload When a TPS is overwhelmed with transactions, it can become sluggish, causing delays in processing and affecting customer satisfaction. This can lead to lost revenue and a negative impact on the business. Data Breaches TPS handle sensitive data, making them targets for cyberattacks. Data breaches can result in financial losses, reputational damage, and legal liabilities for the business. High Costs Implementing and maintaining a TPS involves significant costs, which can limit a business's ability to invest in other areas, such as research and development or 09 marketing. GROUP 2 HOW CAN BE AVOIDED? By choosing a flexible and scalable system from the start, this issue can largely be avoided, but it requires careful planning during the selection process. Implementing robust security measures such as encryption, firewalls, and regular security audits can significantly reduce risks, though not eliminate them completely. To some extent, this cost is necessary for businesses that process high volumes of transactions. However, cloud-based or subscription services can reduce upfront costs. 10 GROUP 2 EXAMPLES OF TRANSACTION PROCESSING SYSTEMS 1.Point of Sale (POS) System: Used in retail stores to record sales transactions, process payments, and manage inventory. For example, when you buy something at a supermarket, the cash register is part of a TPS that records the transaction and updates the inventory. 2.Automated Teller Machine (ATM): In banking, ATMs process various financial transactions such as cash withdrawals, deposits, balance inquiries, and transfers. 3.Online Booking System: Airlines, hotels, and transport companies use online booking systems to process reservations and payments for tickets and accommodations. 11 GROUP 2 THANK YOU I T A P P L I C A T I O N T O O L S I N B U S I N E S S 10