Introduction to Information System Chapter 4 - Electronic, Mobile Commerce and Transaction Processing Systems

Transaction processing systems (TPSs)

–Capture and process detailed data necessary to update records about fundamental business operations

–Provide valuable input to:

•Management information systems, decision support systems, and knowledge management systems

Traditional Transaction Processing

•Batch processing system

•Online transaction processing (OLTP)

•Online transaction processing (OLTP)

–each transaction is processed immediately at any time

-the data in an online system reflects the current status.

–for businesses that require access to current data such as airlines, ticket agencies

Batch processing system

business transactions are:

•Accumulated over a period of time

•Prepared for processing as a single unit or batch

•Payroll transactions and billing

A TPS typically includes the following types of systems:

–Order processing systems

–Accounting systems

–Purchasing systems

Transaction Processing Cycle

–The process of data collection, data editing, data correction, data manipulation, data storage, and document production

Competitive Advantage of Transaction Processing Systems

• Customer royalty increase

• Superior service provided to the customers

• Better relationship with suppliers

• Superior information gathering

• Costs dramatically reduced

• Inventory level reduced

Organizations expect their TPSs to

–Capture, process, and update databases of business data

–Ensure that the data is processed accurately and completely

–Avoid processing fraudulent transactions

–Produce timely user responses and reports

–Reduce clerical and other labor requirements

–Help improve customer service

–Achieve competitive advantage