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Databases
Internal Data Warehouse
External
Transaction Processing
Systems
• What is a transaction?
– Every business event that occurs during
business operations
– Business events (transactions) can trigger
other business events
– Each event (transaction) can be described
by a number of data items
– Transaction processing systems (TPS) are
designed to record and store the data that
describes every business event that occurs
Transaction Processing Systems
(continued)
• TPSs were the first to be automated – repetitive,
consistent, high-volume tasks are ideal candidates for
computerization
• TPSs provide foundation for all other information
systems
• Many TPSs are outward-reaching and convey
impressions to the customers about the quality of the
business
Customer POS
makes a system
purchase
Inventory file
Update
Transaction file
files Sales file
Transaction Processing System
•
( continued
Some characteristics of TPSs
)
– Process large volume of data
– Data sources mostly internal, and output intended mainly for
internal audience
– TPS operate regularly (on demand, daily, weekly, etc.)
– Require large storage (database) capacity
– Require high processing speed (due to the high volume)
– Input and output data known and well-understood (highly
structured)
– Involves high level of detail but low computation complexity
– Requires high level of accuracy, data integrity, and security
– Requires high processing reliability; organizations cannot
function for long without TPSs
– Inquiry processing supported
Methods of Processing
Transactions
Batch Processing: simple, inexpensive
Employee data:
Pay rate Process Employee
Withholdings payroll paychecks
Etc.
Manufacturing R&D/Design
Company
Distribution Accounting/Finance
Other Channel Systems
support all marketing linkages, such as after-sales customer support