Transaction processing systems (TPS) are computerized systems that perform and record daily
routine transactions necessary in conducting business; they serve the organization’s operational
level. The principal purpose of systems at this level is to answer routine questions and to track
the flow of transactions through the organization.
At the operational level, tasks, resources, and goals are predefined and highly structured.
Managers need TPS to monitor the status of internal operations and the firm’s relationship
with its external environment.
TPS are major producers of information for other types of systems.
Transaction processing systems are often so central to a business that TPS failure for a few
hours can lead to a firm’s demise and perhaps that of other firms linked to it.