DEFINITION: A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise.
A transaction is any event that passes the ACID test in which data is generated or modified before storage in an information system
FEATURES OF TRANSACTION PROCESSING SYSTEMS
The success of commercial enterprises depends on the reliable processing of transactions to ensure that customer orders are met on time, and that partners and suppliers are paid and can make payment. The field of transaction processing, therefore, has become a vital part of effective business management, led by such organizations as the
Assosiation for work process improvement and transaction.
Transaction processing systems offer enterprises the means to rapidly process transactions to ensure the smooth flow of data and the progression of processes throughout the enterprise.
Typically, a TPS will exhibit the following characteristics:
a)Rapid Processing
The rapid processing of transactions is vital to the success of any enterprise – now more than ever, in the face of advancing technology and customer demand for immediate action. TPS systems are designed to process transactions virtually instantly to ensure that customer data is available to the processes that require it.
b)Reliability
Similarly, customers will not tolerate mistakes. TPS systems must be designed to ensure that not only do transactions never slip past the net, but that the systems themselves remain operational permanently. TPS systems are therefore designed to incorporate comprehensive safeguards and disaster recovery systems. These measures keep the failure rate well within tolerance levels.
c)Standardization
Transactions must be processed in the same way each time to maximize efficiency. To ensure this, TPS interfaces are designed to acquire identical data for each transaction, regardless of the customer.
d)Controlled Access
Since TPS systems can be such a powerful business tool, access must be restricted to only those employees who require their use. Restricted access to the system ensures that employees who lack the skills and ability to control it cannot influence the transaction process.
e)Transactions Processing Qualifiers
In order to qualify as a TPS, transactions made by the system must pass the ACID test. The ACID tests refers to the following four prerequisites:
f)Atomicity
Atomicity means that a transaction is either completed in full or not at all. For example, if funds are transferred from one account to another, this only counts as a bone fide transaction if both the withdrawal and deposit take place. If one account is debited and the other is not credited, it does not qualify as a transaction. TPS systems ensure that transactions take place in their entirety.
g)Consistency
TPS systems exist within a set of operating rules (or integrity constraints). If an integrity constraint states that all transactions in a database must have a positive value, any transaction with a negative value would be refused.
h)Isolation
Transactions must appear to take place in isolation. For example, when a fund transfer is made between two accounts the debiting of one and the crediting of another must appear to take place simultaneously. The funds cannot be credited to an account before they are debited from another.
i)Durability
Once transactions are completed they cannot be undone. To ensure that this is the case even if the TPS suffers failure, a log will be created to document all completed transactions.
Management Information system is defined as a system or process that provides the information necessary to manage an organization effectively. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions. Management Information Systems are distinct from Regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems.
MIS should have a clearly defined framework of guidelines, policies or practices, standards, and procedures for the organization. These should be followed throughout the institution in the development, maintenance, and use of all MIS. It is viewed and used at many levels by management. It should be supportive of the institution’s longer term strategic goals and objectives.
What is Marketing and its objectives?
A market is defined as a commonplace where there are items for buying as well as selling. Marketing refers to the various strategies that one uses to build a brand name for products or services being offered by the company. The end objective of marketing is to incorporate a sense of recall among the existing and potential customers regarding the product or the service. Marketing helps to establish and enhance the credibility of the product or the service.
What is marketing information system?
Marketing is one of the major factors for the sustenance of any business as revenues are a direct outcome of it. Information systems in marketing process include technologies that allow managers to access important and updated information about the customer wants and preferences and current market demands so that they can offer prompt and apt services. Information Systems also aid in determining and implementing effective marketing strategy.
The Marketing Information System focuses on only the marketing aspects of the management information system. It is an organized way of continually collecting, accessing and analyzing information that marketing managers need in order to make better decisions.
The importance of MIS in marketing:
1. Order Processing System: Computerized order processing system Captures sales orders from customers and processes the orders for further action. It checks the inventory availability, pending orders, production details etc., before accepting the customer order. Computerized sales order processing generates control report daily on orders processed, details of back orders, etc.
2. Sales Management System: Computerized sales management System uses the data from sales order processing system to generate various sales related reports. This system supports accounts management, direct marketing, sales forecasting and sales Presentations.
3. Logistics Management: The physical distribution is a major activity of marketing function. It uses computer based OR models to find optimum location of warehouses, shipment routes, quantity to be transported and stocked etc.
4. Consumer Research: Computerized transaction processing systems capture huge quantity of data about customers and their buying patterns etc. It is used to generate vital information about consumer behaviour.
5. Sales Forecasting: Computer based mathematical and operations research models are used to forecast sales and marketing expenses.
Sources of marketing information:
1. Transaction data: The transaction data includes data about marketing activities such as sales data and sales expense data.
2. Marketing research data: This includes data about consumers, product promotion, prices, and packaging distribution agents.
3. Corporate strategy and corporate plans: Corporate strategy and corporate plans based on detailed analysis of the company’s capabilities are useful sources of marketing information.
4. Marketing research agencies: Marketing research agencies regularly collect data about markets and make such database available to companies at a fee.
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