TPS is a fundamental activity subsystem of information system and plays a very critical
role in any organization. Some of the major features of TPS are as follows:
1. Integration tool
TPS integrates the various departments in an organization. Each department will
generate data and these transaction data flows into a centralized database. The common database
provides the raw data for information generation for various decision makers. TPS thus
integrates the various functional units of an organization.
2. Links customers with the organization
TPS also connects customers with the organization’s warehouse, plant and management.
If TPS fails, it may cut the link with customers and organization cannot transact business with
them.
3. Inputs
Processing involves sorting, listing, merging, updating etc. The inputs are transaction
data like customer code, name product, quantity price etc.
4. Output
The output includes invoice, sales reports, lists, summaries, and inquiry responses. These
are the results of enquiry processing, report processing and interactive processing.
5. The users
TPS is designed to support lower level management. The transactions are highly
structured and routine in nature. Applications are developed to facilitate data capture and
recording. Mostly, operations personnel and supervisors are the user4s of transaction processing
system.
6.User Department Specific
TPS is designed for each department to cater to its special data processing needs. Thus,
production department will have a TPS for processing transactions in the department; marketing
department will have another TPS for it and so on.
7. Highly structured
TPS is highly structured. Business transactions are routine events with relatively very
high frequency like those of inventory management, payroll processing, accounting etc. Hence,
these are early candidates for computerization in most business firms.
8.Scope for cost savings
Since manual transaction processing requires too man y hands and are often inefficient,
most organizations computerize transaction processing. This results in cost savings and drastic
improvement in efficiency of service and information availability.
role in any organization. Some of the major features of TPS are as follows:
1. Integration tool
TPS integrates the various departments in an organization. Each department will
generate data and these transaction data flows into a centralized database. The common database
provides the raw data for information generation for various decision makers. TPS thus
integrates the various functional units of an organization.
2. Links customers with the organization
TPS also connects customers with the organization’s warehouse, plant and management.
If TPS fails, it may cut the link with customers and organization cannot transact business with
them.
3. Inputs
Processing involves sorting, listing, merging, updating etc. The inputs are transaction
data like customer code, name product, quantity price etc.
4. Output
The output includes invoice, sales reports, lists, summaries, and inquiry responses. These
are the results of enquiry processing, report processing and interactive processing.
5. The users
TPS is designed to support lower level management. The transactions are highly
structured and routine in nature. Applications are developed to facilitate data capture and
recording. Mostly, operations personnel and supervisors are the user4s of transaction processing
system.
6.User Department Specific
TPS is designed for each department to cater to its special data processing needs. Thus,
production department will have a TPS for processing transactions in the department; marketing
department will have another TPS for it and so on.
7. Highly structured
TPS is highly structured. Business transactions are routine events with relatively very
high frequency like those of inventory management, payroll processing, accounting etc. Hence,
these are early candidates for computerization in most business firms.
8.Scope for cost savings
Since manual transaction processing requires too man y hands and are often inefficient,
most organizations computerize transaction processing. This results in cost savings and drastic
improvement in efficiency of service and information availability.
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