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Transaction Processing System

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A Transaction Processing System (TPS) is a type of information system. TPSs collect, store, modify and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system. There are four main features related to TPSs: rapid response, reliability, inflexibility, and controlled processing.


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Contents

Features of Transaction Processing Systems

Rapid Response

Fast performance with a rapid response time is critical. Businesses cannot afford to have customers waiting for a TPS to respond, the turnaround time from the input of the transaction to the production for the output must be a few seconds or less.

Reliability

Many organisations rely heavily on their TPS; a breakdown will disrupt operations or even stop the business. For a TPS to be effective its failure rate must be very low. If a TPS does fail, then quick and accurate recovery must be possible. This makes well–designed backup and recovery procedures essential.

Inflexibility

A TPS wants every transaction to be processed in the same way regardless of the user, the customer or the time for day. If a TPS were flexible, there would be too many opportunities for non-standard operations, for example, a commercial airline needs to consistently accept airline reservations from a range of travel agents, accepting different transactions data from different travel agents would be a problem.

Controlled processing

The processing in a TPS must support an organisation's operations. For example if an organisation allocates roles and responsibilities to particular employees, then the TPS should enforce and maintain this requirement.

See also