IntroductionTransactions are the routine daily activities performed by most organizations. · some are commercial transactions (purchase, sale of products and services, payment of invoices, etc.) · others involve recording or retrieving data (making a reservation, registering a student at university, consulting results , etc.) Most individual transactions are relatively simple, but in most organizations there are a very large number of them - so speed and efficiency are important considerations. What is a TPS? A transaction is any business-related exchange such as a payment to an employee, a sale to a customer, and a payment to a supplier. - A transaction processing system (TPS) is an organized set of people, procedures, databases, hardware and software for recording completed business transactions. - Most TPSs include all the components of a CBIS, including databases, telecommunications, people, procedures, software and hardware. - For most organizations, TPS is the basis of daily activities that occur in the normal course of business, adding value value to its products or services.TransactionsTransaction processing is often at the heart of most major activities of organizations and the systems which collect this data often support other systems which can be of decision support, management information or direction information. .A transaction is a fundamental unit of activity in organizations and is generally indivisible. They often involve multiple steps, but if one step fails, the transaction as a whole cannot proceed. Analyzing transaction patterns and transaction data volumes is an important middle management activity in any business process. Objectives of a TPS¨Increase work efficiency¨Capture, process and store transactions and produce results¨Maintain error-free data entry and processing¨Ensure the integrity of data and information¨Produce documents and timely reporting¨Provide increased and improved service¨Build customer loyalty¨Achieve a competitive advantageEarly SystemsTypically, transaction processing business processes were among the first to be automated/computerized in most organizations, a large portion of This initial work on this type of system therefore constitutes the basis of current thinking on information systems. The reason behind this is that: · computer equipment was relatively expensive in those early days · these systems were among the easiest to implement · small savings in the costs of processing a large number of transactions, added to large amounts that would cover the costs of expensive equipment · few other business processes within typical organizations could provide these benefits. At this point, it is also worth noting that centralized systems were initially easier to control and allowed for economies of scale. Grosch's law stated that computing power was proportional to the square of the processor cost – which favored increasingly larger centralized mainframes over smaller distributed systems..