Transaction Processing Systems

1. Transaction Processing Systems Training presentation for Kilomart

2. Section 1 Multiple Choice Quiz Section 2 Section 3 Introducing transaction processing systems Kilomart and transaction processing systems Bibliography Contents

3. Section 1 – Introducing TPSs RETURN TO START

4. Defining a TPS • A TPS collects, stores, modifies and retrieves the transactions of an organisation

5. 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.

6. 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.

7. Real-Time Processing in a TPS • Real-time transaction processing is the immediate processing of data eg airline reservation systems or banking transaction systems

8. 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.

9. 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 Real-Time vs. Batch

10. 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’

11. 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.

12. 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

13. Real-Time Reservation systems POS terminals Library loan systems Batch Cheque clearance Bill generation Credit card sales and transactions Examples of TPSs

14. Storing and Retrieving – Databases • A database is an organised collection of data. There are three structures: Hierarchical Network Relational

15. 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

16. File Types in a TPS • Master file • Transaction file • Report file • Work file • Program file

17. 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

18. 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

19. 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

20. 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

21. 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 Updating data

22. Collecting data in a TPS • Hardware • MICR (magnetic ink character recognition) • ATM • Barcode readers • Forms • On-screen forms • Web forms

23. Analysing data from a TPS • Done as input in other information systems including: • DSSs, decision support systems • MISs, management information systems

24. 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)

25. 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 don’t interfere with each other’s database updates • Durability – all changes to the database are permanent when the transaction is committed.

26. Multiple Choice Quiz RETURN TO START

27. 1. Which of these is not an important characteristic of a TPS • Reliability • Rapid response • Flexibility • Controlled processing ANSWER

28. 2. Real-time processing is: • Cheaper than batch • Faster than batch • Not real at all • Used in bill generation ANSWER

29. 3. Which of the following is not a component of a TPS: • Users • Participants • People from environment • Data mining ANSWER

30. 4. Which is not an example of a TPS: • POS terminal • Airline reservation system • Library loan system • E-mail ANSWER

31. 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

32. 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

33. 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

34. 8. MICR is used in: • Organising • Storing and retrieving • Collecting • Transmitting and receiving ANSWER

35. 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

36. 10. Which of these is not a database structure: • Relational • Hierarchical • Architectural • Network ANSWER

37. Section 2 – Kilomart and TPSs RETURN TO START

38. Collecting data • Bar-code readers • EFTPOS devices • Cash registers • Web forms

39. Organising • DBMS – sort and organise all the data from the transactions from the internet, different terminals and stores

40. 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.

41. 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

42. 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.

43. 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

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

45. 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 Old New New Old New New

46. 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

47. Section 3 - Bibliography RETURN TO START

48. 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)

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

50. 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-transactions/sreich.html