Describe the characteristics of transaction processing systems (TPS) and the role they play in a business.
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.