TRANSACTION PROCESSING SYSTEMS (TPS)
A Transaction
Processing System (TPS) collects and stores data about transactions and
sometimes controls decisions made as part of a transaction. A transaction is a business
event that generates or modifies data stores in an information system. TPSs were
the first computerized information systems. We encounter computerized TPSs frequently,
including every time we write a cheque, use a credit card, or pay a bill sent
by a company. A TPS used to record a sale and generate a receipt is primarily concerned
with collecting and storing data. If the TPS validates a credit card or helps a
clerk determine whether to accept a personal check, it also controls decisions made
within the transaction.
TPSs are designed based
on detailed specifications for how the transaction should be performed and how
to control the collection of specific data in specific data formats and in
accordance with rules, polices, and goals of the organization. Most contain enough
structure to enforce rules and procedures for work done by clerks or customer
service agents. Some TPSs bypass clerks and totally automate transactions;
such as the way ATMs automate deposits and cash withdrawals. A well-designed
TPS checks each transaction for easily detectable errors such as missing data,
data values that are obviously too high or too low, data values that are inconsistent
with other data in the database and data in the wrong format. It may check for
required authorizations for the transaction. Certain TPSs such as airline reservation
systems may automate decision-making functions such as finding the flight that
best meets the customer’s needs. Finally, when all the information for the transaction
has been collected and validated, the TPS stores it in a standard format for
later access by others.
