Some Features Of Transaction Processing System

Published Date: 02 Nov 2017

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Hierarchy:

 "any system of persons or things ranked one above another."

Random House Kernerman Webster's College Dictionary. "Hi•er•ar•chy." Thefreedictionary. N.p., n.d. Web. 5 Apr. 2013. <http://www.thefreedictionary.com/hierarchy>.

Management Levels (Introduction):

Three levels of management and decision making are structured in a pyramid (above) to show the hierarchy structure, at the bottom of the pyramid the levels are Operational, Functional and Strategic. Each level has its own dependants on specified data, decision making responsibilities and time restrictions e.g. days/weeks.

Operational Level:

The Operational Level of the organisation is the lower tier management, for example workers and their supervisors. At this level they work in real time or somewhat close to real time with detailed data such as payroll, tax reporting, order tracking and all basic jobs that are all important in running an organisation smoothly. All the employees at the organisational level all have to be able to respond accordingly from what they have learned from their functional information systems. At Operational Level decision making is instant or very frequent because the decisions are made to decide what happens on the day to day actions that need to be taken for a smooth work flow. The main purpose of control is to know the deviations from targets and plans as quickly as possible in order to take the appropriate action. Customer support, tax reporting and order tracking are all examples of control activates. Internal data is very important at the Operational Level.

Transaction Processing System (TPS):

At the Operational Level they use Transaction Processing Systems’.

"A transaction process system (TPS) is an information processing system for business transactions involving the collection, modification and retrieval of all transaction data. Characteristics of a TPS include performance, reliability and consistency.

TPS is also known as transaction processing or real-time processing."

Janssen, Cory. "Transaction Process System (TPS)." Techopedias. Cory Janssen, n.d. Web. 05 Apr. 2013. <http://www.techopedia.com/definition/707/transaction-process-system-tps

To have a successful organisation it all depends on the reliability of processing transactions to be guaranteed that the customer’s order in met on time, and that investors and suppliers can be paid. With the worldwide understanding of Transaction Processing Systems’ it has become a vital part of running an efficient organisation. Transaction Processing Systems’ enables organisations the ability to quickly process transactions to guarantee smooth and steady flow of data and efficiency to get processes throughout an organisation completed.

Some features of Transaction Processing System (TPS):

Speed Processing:

The speedy process of transactions is important to the success of any enterprise, greater than ever, with the changes in technology and client demand for immediate action. TPS’ are designed to method transactions just about instantly to confirm that client data is out there to process what is needed.

Controlled Access:

Since TPS systems are often such a strong business tool, access should be restricted to solely those workers that need their use. Limited access to the system ensures that workers that lack the talents to regulate it cannot influence the transaction process.

Real Time Processing:

In several circumstances the first issue is speed, as an example, once a bank client withdraws an amount of cash from their account it's very important that the transaction be processed and therefore the account balance updated as persistently as possible, permitting each the bank and client to stay track of funds.

Batch Processing:

Batch process could be a resource-saving group action sort that stores knowledge for processing at pre-defined times. Batch processing is helpful for enterprises that require to process massive amounts of information using restricted resources.

Examples of Batch processing is MasterCard transactions, that the transactions area unit processed monthly instead of in real time. MasterCard transactions would solely be processed once per month so as to provide a statement for the client, thus Batch processing saves IT resources from having to process every transaction separately.

Functional Level:

The Functional Level is the middle level which management make plan of action decisions that are important to the organisation, because they are thought of being more educated and more responsible than the Operation Level management but don’t have as much authority as the Strategic level management, their decisions tend to be more intermediate term issues that answer the organisations needs to complete tasks. Reach objectives and think up of strategies. Control is very important at the Functional Level. Functional Level management set targets to be met for each department or business associates in the organisation that are in line with the main organisational targets set by Strategic Level management. Internal and external data is important for making crucial decisions, which often has a long term time horizon usually between one and three years. The Functional Level uses four different management systems.

Management Information Systems’ (MIS):

Management Information Systems are systems that consist of many parts and entities that work together to gain a certain function to reach a particular target or objective. A Management Information System is mainly a computer based system that gives information for crucial decision making on how to plan or filter an organisation, while controlling the function of the sub division in the organisation and synchronised organisation were all processes are working in unison.

The components of a Management Information System consists of hardware which is for input/output processes and storage for data, software for processing data that is used for telling the hardware components what to do and the data base is the main hub where all the data will be organised and automated.

Management: management covers the design, control, and administration of the operations of a priority. Strategic Level management handles planning; Functional Level management concentrates on controlling; and also the lower management thinks about with actual administration.

Information: information, in MIS, means that the processed data that helps the management in designing, dominant and operations. Data means that all the facts arising out of the operations of the priority. Data is processed i.e. recorded, summarised, compared and eventually conferred to the management within the style of MIS report.

System: data is processed into information with the assistance of a system. A system is formed from inputs, processing, output and feedback or management.

Decision Support Systems’ (DSS):

A Decision support system is a category of information systems that support business and structure decision-making activities. A properly designed Decision Support Systems is a user friendly software based system supposed to assist managers’ makes decisions and compile helpful information from a mixture of data, documents, personal information, or business models to spot and solve issues and make decisions.