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Transaction processing is a style of computing that divides work into individual, indivisible transactions called transactions. A transaction processing system (TPS) or transaction server is a software system, or software / hardware combination, that supports transaction processing. A transaction processing system (TPS) is an information processing system for business transactions that involves the collection, modification and retrieval of all transaction data. The characteristics of a TPS include performance, reliability and consistency.
A transaction processing system, or TPS, is a system for capturing and processing the detailed information necessary to update data on the fundamental operations of an organization. A transaction is essentially a unique event that changes something. There are many different types of transactions. For example, customer orders, receipts, invoices, payments, etc. Actual transaction processing includes data collection, editing, manipulation, and storage. The result of processing a transaction is that records in an organization are updated to reflect the new conditions at the time of the last transaction processed. Consider the example of the electronics store. A customer buys a video game and pays for it with cash at the registry. This event is recorded as a sales transaction. However, it also activates other transactions. First, the amount of cash in the registry has gone up. Second, the inventory of the particular video game has been reduced by one. These transactions are logically linked: they occur on the same day at the same time and include the same element. Linking transactions provides improved data consistency since one can not exist without the other. The amount of cash in the registry can not go up unless some transaction makes this happen. There are many different types of transaction processing systems, such as payroll, inventory control, order entry, accounts payable, accounts receivable and others. Transaction processing makes a valuable contribution to many other systems in an organization, such as management information systems and decision support systems. A TPS serves as a basis for these other systems. A TPS tracks routine operations, but does not provide much support for decision making. For example, in the case of a bank account, a TPS records all events associated with a single account: deposits, withdrawals, transfers, fees, interest paid, etc. This provides a good description of the account activity. Now let's say that the customer walks into the bank and applies for a car loan. Account activity is useful information, but not enough for the bank to make a decision on the car loan. This requires combining information from different sources and analyzing the financial profile of the client. |
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