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Transaction Processing Systems
A Transaction Processing System
(TPS) is a type of information system that collects, stores, modifies and
retrieves the data transactions of an enterprise.
A transaction is any event that passes the ACID test in which data is
generated or modified before storage in an information system
Features
of Transaction Processing Systems
The success of commercial enterprises depends on the reliable processing of
transactions to ensure that customer orders are met on time, and that
partners and suppliers are paid and can make payment. The field of
transaction processing, therefore, has become a vital part of effective
business management.
Transaction processing systems offer
enterprises the means to rapidly process transactions to ensure the smooth
flow of data and the progression of processes throughout the enterprise.
Typically, a TPS will exhibit the following characteristics:
Rapid
Processing
The rapid processing of transactions is vital to the success of any
enterprise – now more than ever, in the face of advancing
technology and customer demand for immediate action. TPS systems are designed
to process transactions virtually instantly to ensure that customer data is
available to the processes that require it.
Reliability
Similarly, customers will not tolerate mistakes. TPS systems must be designed
to ensure that not only do transactions never slip past the net, but that the
systems themselves remain operational permanently. TPS systems are therefore
designed to incorporate comprehensive safeguards and disaster recovery
systems. These measures keep the failure rate well within tolerance levels.
Standardisation
Transactions must be processed in the same way each time to maximise efficiency. To ensure this, TPS interfaces are
designed to acquire identical data for each transaction, regardless of the
customer.
Controlled
Access
Since TPS systems can be such a powerful business tool, access must be
restricted to only those employees who require their use. Restricted access
to the system ensures that employees who lack the skills and ability to
control it cannot influence the transaction process.
Transactions
Processing Qualifiers
In order to qualify as a TPS, transactions made by the system must pass the
ACID test. The ACID tests refers to the following four prerequisites:
Atomicity
Atomicity means that a transaction is either completed in full or not at all.
For example, if funds are transferred from one account to another, this only
counts as a bone fide transaction if both the withdrawal and deposit take
place. If one account is debited and the other is not credited, it does not
qualify as a transaction. TPS systems ensure that transactions take place in
their entirety.
Consistency
TPS systems exist within a set of operating rules (or integrity constraints).
If an integrity constraint states that all transactions in a database must
have a positive value, any transaction with a negative value would be
refused.
Isolation
Transactions must appear to take place in isolation. For example, when a fund
transfer is made between two accounts the debiting of one and the crediting
of another must appear to take place simultaneously. The funds cannot be
credited to an account before they are debited from another.
Durability
Once transactions are completed they cannot be undone. To ensure that this is
the case even if the TPS suffers failure, a log will be created to document
all completed transactions.
These four conditions ensure that TPS systems carry out their transactions in
a methodical, standardised and reliable manner.
Types
of Transactions
While the transaction process must be standardised
to maximise efficiency, every enterprise requires a
tailored transaction process that aligns with its business strategies and
processes. For this reason, there are two broad types of transaction:
Batch
Processing
Batch processing is a resource-saving transaction type that stores data for
processing at pre-defined times. Batch processing is useful for enterprises
that need to process large amounts of data using limited resources.
Examples of batch processing include credit card transactions, for which the
transactions are processed monthly rather than in real time. Credit card
transactions need only be processed once a month in order to produce a
statement for the customer, so batch processing saves IT resources from
having to process each transaction individually.
Real
Time Processing
In many circumstances the primary factor is speed. For example, when a bank
customer withdraws a sum of money from his or her account it is vital that
the transaction be processed and the account balance updated as soon as
possible, allowing both the bank and customer to keep track of funds.
Courtesy: Mr. M. Sathya
Kumar, The author is a student of ICAI
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