Transaction Processing Systems

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Transaction Processing Systems

• Training presentation for Kilomart

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Contents

• Section 1
• Multiple Choice Quiz
• Section 2
• Section 3

• Introducing transaction processing systems
• Kilomart and transaction processing systems
• Bibliography

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Section 1 Introducing TPSs
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Defining a TPS

• A TPS collects, stores, modifies and retrieves
  the transactions of an organisation

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Characteristics of a TPS

• Rapid response fast performance with rapid
  results
• Reliability well designed backup and recovery
  with a low failure rate
• Inflexibility treat every transaction equally
• Controlled processing maintain specific
  requirements for the roles and responsibilities
  of different employees.

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Batch Processing in a TPS

• Batch transaction processing collects the
  transaction data as a group (batch) and processes
  it at a later time eg cheque clearance or
  generating pay cheques.

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Real-Time Processing in a TPS

• Real-time transaction processing is the immediate
  processing of data eg airline reservation systems
  or banking transaction systems

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Transaction processing monitor

• A TP monitor is software that provides a standard
  interface between the input devices, the
  transaction processing application programs and
  the DBMS. It also provides data security and is
  an important part of real-time processing.

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Real-Time vs. Batch

• Real-time
• Each transaction is unique
• Requires master file to be readily available
• Has fewer errors as data is entered and validated
  immediately
• More computer operators required

• Batch
• Cheaper
• Transactions must have similar inputs and outputs
• Any error is not immediately detected
• Easier to maintain
• Less IT required

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Data validation

• Involves procedures to ensure that transactions
  are correct and have been accurately stored in
  the database
• Although essential, it is impossible to validate
  all the data as some errors are very difficult to
  detect eg typing 1986 instead of 1987

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Manual Transaction Systems

• A manual transaction system is a business system
  that operates without the use of machines
• People record the data and perform stock takes to
  check for misplaced/stolen money or stock
• Computerisation provides significant benefits as
  it is faster, more affective and provides
  relevant information for the business.

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Components of a TPS

• Users a main feature of a TPS, they often take
  the data provided by it and use it in another
  information system
• Participants - people who conduct the information
  processing, success or failure is dependant on
  them

• People from the environment become participants
  when they directly enter transactions and perform
  validation eg withdrawing money from an ATM

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Examples of TPSs

• Real-Time
• Reservation systems
• POS terminals
• Library loan systems

• Batch
• Cheque clearance
• Bill generation
• Credit card sales and transactions

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Storing and Retrieving Databases

• A database is an organised collection of data.
  There are three structures
• Hierarchical Network Relational

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Important Database Features

• Real-time TPS databases should have
• Good data placement
• Short transactions
• Real-time backup
• High normalisation
• Archiving of historical data
• Good hardware configuration

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File Types in a TPS

• Master file
• Transaction file
• Report file
• Work file
• Program file

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Data Warehousing

• A data warehouse is a database that collects
  information from different data sources. Data has
  to be
• Consolidated
• Subject-oriented
• Historical
• Read-only

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Backup and Recovery

• A backup is another copy of data that could be
  used to rebuild the system should failure occur
• Recovery of a database involves
• The backup
• Journal
• Checkpoint
• Recovery manager

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Types of Recovery

• Backward recovery used to undo unwanted changes
  to the database
• Forward recovery starts with a backup and
  reproduces transactions from a journal

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Grandfather-Father-Son

• A backup procedure that refers to at least three
  generations of backup master files
• Commonly used with magnetic tape
• If the TPS fails, the first generation backup is
  used (son) to recover it, if this is also
  corrupted the next generation is used (father)
  and so on

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Updating data

• In a batch
• Involves sequential access
• Most common medium is magnetic tape

• Real-time
• Involves direct access
• Can be stored on magnetic disk, CD, hard disk and
  others

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Collecting data in a TPS

• Hardware
• MICR (magnetic ink character recognition)
• ATM
• Barcode readers
• Forms
• On-screen forms
• Web forms

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Analysing data from a TPS

• Done as input in other information systems
  including
• DSSs, decision support systems
• MISs, management information systems

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Issues Related to TPSs

• Nature of work is changing
• Automation of jobs
• People as participants
• Bias free data
• Data security
• Data accuracy
• Data integrity (the ACID test)

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The ACID Test

• Atomicity all steps involved in a transaction
  are completed as a group
• Consistency database is successfully
  transformed from one state to another
• Isolation simultaneous transactions dont
  interfere with each others database updates
• Durability all changes to the database are
  permanent when the transaction is committed.

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Multiple Choice Quiz
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1. Which of these is not an important
characteristic of a TPS

• Reliability
• Rapid response
• Flexibility
• Controlled processing

ANSWER
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2. Real-time processing is

• Cheaper than batch
• Faster than batch
• Not real at all
• Used in bill generation

ANSWER
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3. Which of the following is not a component of a
TPS

• Users
• Participants
• People from environment
• Data mining

ANSWER
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4. Which is not an example of a TPS

• POS terminal
• Airline reservation system
• Library loan system
• E-mail

ANSWER
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5. In a manual transaction system

• People record the data and perform stock takes
• Robotic arms perform manual labour
• People operate computers and machinery
• There is no data

ANSWER
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6. The five basic file types in a TPS are

• Master file, slave file, teacher file, child file
  and print file
• Terminal file, processing file, master file,
  slave file and backup file
• JPEG, GIF, PGF, PNG and PSD
• Master file, transaction file, report file, work
  file and program file

ANSWER
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7. The ACID test involves

• The Atomic Composition of Information Databases
• Testing the chemical properties of storage media
  in TPSs against sulphuric acid
• The Atomicity, Concurrency, Isolation and
  Dataframe
• The Atomicity, Consistency, Isolation and
  Durability

ANSWER
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8. MICR is used in

• Organising
• Storing and retrieving
• Collecting
• Transmitting and receiving

ANSWER
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9. Recovery of a database involves

• The backup, journal, TP monitor and operating
  system
• The backup, journal, checkpoint and recovery
  manager
• Travelling back in time to a point where the
  database was functional
• The storage of backups off-site

ANSWER
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10. Which of these is not a database structure

• Relational
• Hierarchical
• Architectural
• Network

ANSWER
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Section 2 Kilomart and TPSs
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Collecting data

• Bar-code readers
• EFTPOS devices
• Cash registers
• Web forms

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Organising

• DBMS sort and organise all the data from the
  transactions from the internet, different
  terminals and stores

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Analysing

• DSS using data mining to determine
  relationships and patterns in product sales at
  stores
• MIS assist managers in generating stock
  inventories, payrolls, orders and budgets.

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Storing and Retrieving

• Data should be stored on-site with backups both
  on-site at each store as well as off-site at the
  Kilomart head office mainframe computer
• Hard disks, floppy disks, CDs and/or other
  storage media should be used

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Processing

• Backups should be done using the
  grandfather-father-son method updated at least
  two times per day
• Transaction journals should be kept for web sales
  as well as each terminal for system recovery and
  to track down any missing or stolen money.

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Transmitting and Receiving

• Each terminal at each store should be connected
  to the mainframe in that store in a LAN
• Each mainframe at each store should be connected
  to the mainframe at the Kilomart head office as
  well as the internet for web transactions in a
  secure WAN

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Displaying

• Each terminal needs a printing device for
  customer receipts
• A user-friendly web interface for internet
  transactions

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Implementation

• A new system can be implemented in several
  different ways
• Direct conversion Phased conversion
• Parallel conversion Pilot
  conversion

Old
New
Old
New
Old
Old
New
Old
New
Old
New
New
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Social and Ethical Issues

• Every customer has a right to their own privacy
  and details stored such as credit card number,
  name and address have to be secure
• The implementation of a new TPS would require
  staff to be skilled in different areas
• Transaction data has to be secure during
  transmission to the mainframe as well as while
  stored

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Section 3 - Bibliography
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Books

• Information Processes and Technology HSC Course,
  by G.K. Powers published by Heinemann (2000)
• Information Processes and Technology - HSC
  Course, by Peter Ware, Paul Cheleski Bill
  Chivers, published by Jacaranda (2001).
• Excel HSC Information Processes and Technology,
  by G. Johnstone. M. Lowbridge J. Smith,
  published by Pascal Press (2003)

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Web Resources

• Mr Alexander.com Information Technology
• http//www.mralexander.bravehost.com/
• Mr Betts Computers Online Learning Resources
• http//au.geocities.com/graham_betts/

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For More Details

• Macksville High School HSC IPT Resources
• http//www.macksville-h.schools.nsw.edu.au/IPT/IPT
  .htm
• Business Transaction Processing System
• http//st-www.cs.uiuc.edu/users/johnson/business-t
  ransactions/sreich.html

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THE END

• Created by Nick Nestoroski