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