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Examining Goals Of Transaction Processing System Information Technology Essay

Transaction handling system (TPS), an information system (IS) largely used by professionals in operational management to track record internal transactions, economic events that appear within an firm and external orders where the business event took place outside the firm to make operational decision. TPS supports different tasks by setting a couple of rules and rules that specify the ways to fully capture or collect, process and store any business deal in a kind of data or information.

Supply string management system(SCMs), it can also be referred to as Enterprise Resources Planning(ERP). This technique involved the info of any business techniques that related to the actions of producing and providing the final goods or services, such as the activities take part in the producing goods involved marketing to after-the-sale services; Industries which provide services might include doc management, monitoring customer's portfolio and more.



Organizations expect their TPS to accomplish a number of specific targets such as:

Process data produced by and about ventures: The primary target of TPS is to fully capture, collect, process, and store orders also to produce useful documents related to boring business activities to professionals.

Maintain high degree of accuracy: One of the goals of TPS is error free data source and processing. In manual TPS, the producing transactions were often inaccurate because human are fallible, resulting in wasted time, effort and requiring resources to improve them. In contrast, with computerized TPS, purchase processed appeared to be accurate or mistakes were minimized because accuracy investigations were done by both humans and computer system.

Ensure data and information integrity: TPS ensure that the data and information stored in databases are always exact, current, appropriate and up thus far.

Produce timely documents and accounts: Manual TPS take longer time than computerized TPS to create routine documents. Computerized TPS and the advancements in it (IT) allow purchase to be prepared in an exceedingly short period of their time.

Increase labour efficiency: Manual TPS were labour extensive where the procedure for business business deal are done yourself. With computerized TPS, organizations can decrease the need of many labours as computer can replace individual labours, thus saving the price.

Help provide increased and improved services: TPS assist corporation in providing superior customer support. For instance, computerized TPS allow customer to place orders for raw materials electronically and helps businesses to monitor customer orders through all periods from order to delivery to receipt of repayment. Thus, this enables firms to be more responsive to customer needs and queries.


Processing business deals was the first request of computer of most firms. Because the 1950s, Transaction processing system (TPS) have evolved from slow-moving, manual systems to advanced computerized system. TPS, a cross-functional information system were among the earliest computerized systems developed to track record, process, validate, and store businessfor future use or retrieval. Transactions are the monetary occasions or exchange between several business entities. Basically, TPS is an organized collection of people, procedures, databases, and devices used to record completed business exchange and store data about these purchase.

Data entry and input

(organic data) Handling Documents and reports

Data Files

Data collection:The procedure of capturing and gathering the needed data to complete orders. Data collection can be manual process or automated process. The utilization of automated data collection devices have made data collection faster, better and reliable and allow firms to use the gathered data in much more flexible ways. For instance, retail stores use scanners to read the pub code from product packages and automatically go into the price item to TPS. After the price data is got into, the computer will determine customer's bill.

Data manipulation:The procedure of performing computation and other data change related to business trades and store data and information in organization's repository for further processing. For example, in a payroll TPS, managers multiply employee's time did the trick times the hourly pay rate.

Data storage area: Data storage area involves placing deal data or information in database. The stored data can be further prepared and manipulated by other information system. In other words, the data appears to be the foundation of data for other information systems

Data production: The process of outputting files and reviews. The documents may maintain the form of hard duplicate paper reports or soft copy where documents are displayed on computer monitors.


There are 4 characteristics atlanta divorce attorneys single transaction producing systems.

1. Fast response: To be able to shorten the holding out time of the users, TPSs are revised to process orders instantly to ensure the data will be accessible in the shortest ready time.

2. Consistency: Because of the engagement of cash, the dependability of TPS should be in place. TPSs need to be designed in a way to enough time transactions slip past the net in the same time remain themselves functioning entirely. Also the inability rate has to be continued to be within the tolerance levels. Recover extensive safeguards and disaster recovery systems need to be contained by the designed TPSs.

3. Inflexibility: Errors or errors can occur once the steps alter. To increase the efficiency of the TPS, ventures need to be prepared in the same order. With that, TPS interfaces need to be designed so the identical data for every transaction can be acquired.

4. Controlled Handling: Transaction control monitor is found at every end of the computer to ensure that the orders are properly inputted. Still it needs human controls on it. TPSs can be used even in improve the data and fraudulent the transactions. Start an individual of the machine needs to be restricted only for individuals who've the expert.



Supply String Management(SCM) can help the organization knows just what the supplies dependence on the value string and the amounts that required by the clients. This system will help the sectors to determine how should they produce their final goods and services in the efficiency way. Besides, under SCM system, it helps the organization to keep up the qualities of their product to have an extensive reputation. There is an example given by Reynolds and Stair(2010), "Within an automotive company, SCM can identify key resources and parts, negotiate with vendors to discover the best prices and support, make sure that all resources and parts are available to manufacture vehicles, and send completed products to dealerships around the united states when they are needed. " Naturally, with a solid SCM system, it will help an organization to run their business efficiency and effectively.


Supply String Management(SCM) system can help a business to value their inventory based on either First In First Away(FIFO) or Last In First Out(LIFO)method. By using this system, the organization can easily keep tabs on all of their materials and store manager can also use it to analyse the organizational activity. Besides, it also brings some benefits to get controller which include keep abreast of seller performance, create the delivery timetable, generate purchase order and so on. SCM provide some services to supplier too, company can check their stock employing this system and they can also keep track of the obligations. On the other hands, it also brings advantages such as decrease the source and safe-keeping costs help the organization to have a much better ability to manage their inventory, improve the delivery plan and response quickly to the business in any techniques which mixed up in supply string.


Besides advantages, Supply Chain Management (SCM) system also offers some constraints. SCM is a quite complex system because it cannot fit the needs of customers separately. Although the machine can help a business to integrating the resource chain, it is hard for it to determine if the decisions have been designed for choosing the supplier was right or wrong. In SCM system, there are some logically errors such as the lead times in the machine stay the same constantly and the capacities provided by the suppliers are infinite, however in real life we know these are impossible to happen. Furthermore, SCM system usually rigidly, so it is hard for the organization to customize ERP system. Besides, the installation of the system often takes a very long time to complete, this will affected the budget and time of the organization. Lastly, some of the conflicts are hard to avoid. For example, when there are some mistakes happened, some quarrels might be made an appearance over the responsibility and accountability.


In finish, to ensure that an group can reach their goals effectively and efficiency, Exchange control system (TPS) and offer string management (SCM) play a specific role. These information system are very useful in support the actions of the business organization. By using different information system, it will present dissimilar consequence. Thus, it is necessary for a business to understand the information systems and choose the best option system to enhance their management in organizational information.


Amir, Y (2000) "Transfer Control Systems", (online) (cited 25 October 2000). Available from http://www. bestpricecomputers. co. uk/glossary/transaction-processing-systems. htm

Laudon, KC. , Laudon JP. (2006), Management Information Systems, (9thedn), , United States of America, Pearson Education, Inc.

Stair, RM. , Reynolds, GW. (2010), Fundamentals of information system, (5thedn), , United States of America, Course Technology.

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