Question Tag: Transaction Processing System

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  • 5 Marks

BMIS – Nov 2021 – L1 – Q3b – Introduction to information technology and information systems

Explain the applications of Transaction Processing Systems and Decision Support Systems in business organizations.

Explain the following applications of information technology in business organizations:
i) Transaction Processing System.
ii) Decision Support System. (5 marks)

Applications of Information Technology in Business Organizations

i) Transaction Processing System (TPS):
A Transaction Processing System refers to any information system that supports the monitoring, collection, storage, and processing of data from an organization’s primary business transactions, each of which generates data. A transaction processing system is used to collect and process daily transactions of an organization. TPS serves as an input for an organization’s customer relationship management, business intelligence, and knowledge management.

ii) Decision Support System (DSS):
A Decision Support System is an information system that aids managers in making decisions based on built-in models. The objective of a Decision Support System is to support managers in their work with reference to all decisions at the management level.

(2.5 marks for each = 5 marks)

  • 10 Marks

BMIS – July 2023 – Q5a – Introduction to information technology and information systems

Explain a Transaction Processing System and describe four of its characteristics.

The company in which you work as Clients’ Services Manager has recently registered a steep growth in its customer base. To cater for this level of growth and future occurrences, you have decided to recommend to management to consider the acquisition and installation of a Transaction Processing System (TPS).

Required:
i) Explain a Transaction Processing System. (2 marks)
ii) Explain FOUR (4) characteristics of a Transaction Processing System. (8 marks)

i) Definition of Transaction Processing System (TPS):
A Transaction Processing System (TPS) is an information system that keeps track of the transactions required to conduct business. It is usually computer-based.

ii) Characteristics of a Transaction Processing System (TPS):

  1. Detailed Reports: TPS produces detailed reports on specific information about routine business activities.
  2. Transaction Data Inputs and Outputs: Inputs to the system are transaction data, whereas outputs consist of processed transactions.
  3. Departmental Ownership: Each functional unit or department can own its TPS.
  4. Support for MIS: The database of transactions stored on a TPS is used to support the Management Information System (MIS) of an organization.
  5. Operational Importance: It is of immense importance to managers and supervisors because it deals with day-to-day business matters.
  • 10 Marks

BMIS – May 2016 – L1 – Q7a – Introduction to information technology and information systems

State five advantages that would accrue to a firm from installing a Transaction Processing System (TPS).

You work as an accounts officer in a supermarket in Accra. The supermarket has recently witnessed a dramatic growth in its customer base. Management has therefore decided to install a Transaction Processing System (TPS) to cater for this growth. State FIVE advantages that would accrue to the firm with this decision.

i) Time Saving: TPS can process large volumes of data within a short period of time.

ii) Operational Efficiency: TPS will facilitate the smooth operations of the supermarket and will provide the base for other internal information systems.

iii) Database Stability: TPS facilitates database stability in the sense that in the event of network failure, the information will be stored in the database and the transaction will continue when service is restored.

iv) Activity Tracking: TPS assists information system managers and staff to keep track of all activities and transactions of the company, such as sales and receipts.

v) Access to a Wider Market: TPS will enable the supermarket to access potential customers to buy the goods when linked to the internet.

vi) Time Sharing: TPS facilitates the sharing of the system and its properties among multiple users working on the same transaction at the same time.

vii) Back-up: TPS provides the basic building blocks for other systems in that it has a backup in case of system failure.

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