Traditional transation processing methods

• Batch processing systems is where business transaction are accumulated for a period of time and prepared for processing as a single unit or batch. This is the original form of transaction processing.
• An example is a payroll system calculating employee's pay at the end of each week.
• Today's computer technology allows another processing method called online transaction processing.
• Online transaction processing(OTLP) is where each transaction is processed immediately without delay.

Objectives

• Process data generated by and about transactions.
• Maintain a high degree of accuracy and integrity
• Produce time documents and reports
• Increase labor effeciency
• Help provide increased service

Transaction Processing activities 

• The  transaction processing cycle is the process of
1. Data collection
2. Data editing
3. Data manipulation
4. Data storage
5. Document production

Traditional transaction processing application 

There are several common transaction processing system utilized within business, they support:

1. Ordering
2. Purchasing
3. Accounting 

• The order entry system captures basic information to process a customer order,
• An example is Pepsi-America recently upgraded their order system so sales reps could make orders for their customers using their pocket PCs.
• An inventory control system updates the computerized inventory records to reflect the exact quantity on hand of each stock keeping unit.
• For example Dell uses an inventory management system to capture real-time sales data to enable them to keep track of sales in any region in any given day.
• The payroll system calculates the pay for employee's of an organization.
• Payroll transaction processing systems also provide input into various weekly. quarterly, and yearly reports.