Transaction Information System

Transaction Information System
Transaction information systems are design to process the day-to-day transaction of an organization so that many labor intensive business activities can be replaced by automated processes.

These transactions are characterized by large numbers and routine processes.

Each process involves a very simple data transaction and the TPS (transaction Processing Systems) is expected to process each one in a very short period of time.

Examples include supermarket grocery checkout (i.e., billing systems) or bank transaction processes.

When computers were first used for processing business applications, TPSs were the primary systems implemented to replace the manual systems then in use.

Typically, a successful TPS can improve transaction efficiency and customer service and reduce transaction costs.

The first TPS was a batch system. A TPS in batch processing implies that all transaction are collected first and processed at a later time.

The disadvantage of batch processing is that information cannot be updated immediately.

A TPS with online processing updates information when the transaction is entered . In a business where immediate update is required, an online TPS is necessary.
Transaction Information System