Transaction Processing Systems

Transaction processing systems are information systems which collect, store, modifies and
retrieves the daily transactions of an organisation.

TPS's are all to do with business, money and most importantly securing and recording the daily
transactions of a company. This topic focus' on the processes of storing and retrieving, collecting
and analysing.

Contents

4.1 Characteristics of Transaction Processing Systems

4.2 Examples of Transaction processing Systems

4.3 Storing and Retrieving

4.4 Other Information Processes

4.5 Issues Related to Transaction Processing Systems

HSC Questions on TPS

News forum

TPS Teaching Program

TPS Outline

Year 12 Assessment Task includes Multimedia

Glossary TPS

TPS Topic Test

1 4.1 Characteristics of A Transaction Processing System

Four important characteristics of a TPS are:

Rapid Response

Reliability

Inflexibility

Controlled Processing
 Batch Processing
Real-time Processing
Transaction Processing Monitors
Data Validation
Manual Transaction Systems

Questions for 4.1

2 Batch Processing Vs Real Time Processing

Batch Processing: was developed early on when computers were scarce and computing time was
expensive. batch processing reduced costs by reducing the time for user input. In batch processing
all the information that needs to be processed is collected and processed as a batch (group) at a
later time.

This machine shown above was used by US Agricultural Department to store statistics on erosion.
You can see how all the punch cards are processed together.

Real Time Processing: The processing occurs on the spot at that time. Examples
of real time processing in TPS systems are EFTPOS machines and ATMs such as is
happening in the image. When goods are purchased using EFTPOS the
transaction occurs on the spot.

2 main concerns with real-time processing are:

concurrency: ensures that more than one user cannot change the same data at
 the same time.

atomicity: all the steps in a transaction are completed or no transaction takes place and any
changes do not go through.

HSC Questions

Transaction Processing Monitor

This is software used to initiate and monitor the

transaction inorder to reduce errors and is
sometimes referred to as middleware. TP
monitor technology controls transaction
applications and performs business logic/rules
3 computations and database updates in
distributed client server environments.

TP monitor technology is used in data management, network access, security

systems, delivery order processing, airline reservations, and customer service.

4 Data Validation

this is the process of checking the accuracy of entered data. This involves software called a
transaction processing monitor (TPM) and requires 2 processes:

Transaction Initiation: This is like a communications handshake and sets up the protocols and
acknowledges the readiness of the system to send and receive the transaction data. This is used
to reduce and help eliminate errors. Times are added as headers in the data to allow the data to
be traced in the evnt of data loss.

Field Checking: This occurs as data is entered into the database to ensure as far as possible that
what is entered makes sense. There are a number of different checks made including: range
checks, list checks, type checks and a check digit.

Range Check: Checks that the data lie within a specified range of values, e.g., the month of a
person's date of birth should lie between 1 and 12.

Check Digit: Used for numerical data. An extra digit is added to a number which is calculated from
the digits. The computer checks this calculation when data are entered, e.g., The ISBN for a book.

Type Check: Checks the data type is the correct type such as data entered in a text field is text,
numbers in a numerical field.

List Check: used to compare what is entered compared to a set of accepted data (i.e. a list). This
 list may include the states of Australia, Months of the year, names of capital cities.

Data Validation Questions

HSC Questions on Validation and Verification

Manual Transaction Systems

Manual transaction systems are business systems which operate

without an information system (i.e. no computers). They have
been around for thousands of years. The earliest writings are
Sumerian business receipts on clay tablets which are around 5
thousand years old. But of course people still keep manual
transaction records.

You probably keep receipts for goods that you buy. You may keep
these for tax reasons or for warranties but either way they are
transaction records. Most people still keep a range of receipts on
paper. Until recent times many records were still stored in account books. This required
5 bookkeepers to balance the accounts. These are the manual equivalent of
spreadsheets. However these days most companies are electronic whether it
be buying a seat on a plane or purchasing a book.

Transferring these paper based records into an electronic system has many
benefits including:

customers can purchase goods at their convenience

it is easy to do stocktakes

reduced wage costs

Whatever the peripheral benefits computerisation of a manual system will aim to maximise
profits.

6 4.2 Examples of Transaction Processing Systems

In this section we will look at components of a

TPS and some real life examples.

Contents
Components of a TPS
Examples of Real-time Transaction Processing
(reservation systems, POS, Library Loans)
Examples of Batch Transaction Processing
 Questions for 4.2 Characteristics of a TPS

Components of a TPS

The components of a TPS include hardware, software and people. The most important component
of a TPS are people. Without people the system does not have customers and without customers
it does not have a funtion to perform. People in a TPS can be divided into 3 categories: users,
participants and people from the environment.

Users: The users are people employees of the company who own the TPS. They will use it to
provide information information about the system but will not enter data themselves. The
7 information they provide from the TPS may be used to provide inputs for other information
systems such as stock control, marketing etc...

Participants: Participants are direct users of the system. These are the people who will enter the
data. They include data entry operators, customer service operators, people working at checkouts
and anyone carrying out the tasks required to process the data.

People From The Environment: These are people who do not directly work for the company but
people off the street who sometimes require the services of a TPS as they enter transactions and
validate data such as a customer withdrawing money from an ATM.

8 Examples of Real-time Transaction Processing

There are 3 examples of TPS examined in the HSC:reservation systems, POS, Library Loans

Reservation Systems

These are used by businesses where services need to be booked. Examples of reservation systems
can be found at travel agencies, airline companies, rental companies, entertainment agencies
such as Tickatek or the relevant venues. Every time a booking is made the available resources
need to be reduced by the same number or resources reserved or paid for. Once the transaction
has taken place then tickets need to be printed credits will be transferred from the customer's
account to the booking agency, receipts need to be printed and transaction records need to be
updated in the database.

Point of Sale (POS)

POS is the system that is in place for purchases involving EFTPOS (electronic funds transfer at
point of sale). POS is just an abbreviation of the full name of EFTPOS. POS systems are found in
many businesses now from major outlets such as Coles or Woolworths to many mixed businesses
and petrol stations. The POS system is what allows the convenience of an ATM at midnight. When
a transaction takes place, goods are scanned from barcodes or details are typed in, any required
credit card checks are made, a receipt is sent to the customer (displayed on the screen or printed
 on a receipt), coded inventory data is sent through to update the database and the inventory or
bank balance is updated. It will also work out the change required and any receipt will normally
itemise items.

Library Loans

 The borrower will normally have a library membership card which will be scanned and checked
for overdue books and fines, the borrowed items will be scanned and each item will then be
placed under the borrowers name. The details about available books will then be updated on the
database. The system will also allow reservations to be placed on the books.

9 Examples of Batch Transaction Processing

Contents

Cheque Clearance

Generation of Bills

Credit Card Transactions

There are three examples that the NSW HSC syllabus refers to: cheque clearance, bill generation
and credit card sales transactions

"examples of batch processing, including:

– clearing of presented cheques

– generation of bills

• systems that appear real time, computerising transactions as they occur, but actual updating is
processed in batch, such as credit card transactions"

HSC syllabus page 45

Clearing of Presented Cheques (Cheque Clearance)

Once a cheque is presented to a bank it is normally put to the side and processed as part of a
batch. In fact the cheque will become a part of one batch once it is deposited at the bank and
then part of another batch once it is sent to the issuer's bank. Each step has built in delays to
ensure that people are not paid twice or the money taken out of an account which does not have
the money. These days, will electronic processeing cheques are normally cleared within three
days it use to take over a week.

Generation of Bills

Bills are not pleasant. For many people it always seems that many bills appear at once. This is not
coincidence but you will be glad to know that it is not part of some evil plot. Most bills are
 generated for a fixed time period which the computers will automatically generate once that
period has fallen due. Once there is an overlap of bills they will continue to come at the same time
because that is how they are generated: as a batch for a fixed time period. The bills are generated
as a batch to reduce mailing and printing costs. Some companies will even allow users to view
their bills and account details online.

 Credit Card Transactions

Credit card transactions on the internet are very unusual because they appear real time but in fact
are actually batch. Huh? Seems strange doesn't it. But in reality the only real time transaction is
the check that is made to ensure that the card is current, and is not listed as lost, stolen, cancelled
or over the limit. The transaction i8s actually processed as a batch at a later stage. Of course there
are still manual credit card transactions which are entered into the TPS. these transactions may
take from hours to weeks before they are processed. The manual aspects to online credit card
transactions bring in issues of security (credit card fraud, identity theft), privacy (personal details
can be read) and ethical issues.

Case Study

Students create their own virtual case studies including feasibility studies, and presentation to
virtual executives of organisation.

sample PowerPoint for a case study

1
0 Laura's Liquorland

TPS notes from Andrew

Rebecca TPS PowerPoint

Celia PowerPoint

1 4.3 Storing and Retrieving

1
many people daily rely on the reliability of TPS
and as such they must have an efficient and safe
method of storage and retrieval. Databases are
used to store the data and requires a safe and
effective plan for backups and recovery if
anything goes wrong.

Contents
 Databases and files (hierarchical, network or relational structure, Good Design)

Data warehousing

Backup Procedures

Doing Updates (batch)

Real-time Updates

Worksheet for 4.3 Storing and Retrieving

1 Databases and Files

2
hierarchical,

network 

relational structure

Good Design For TPS

Files and TPS'

A database is an organised collection of data. When an organisation stores its operational records
and accounts in a databses this type of database is then called an operational database. The
database is organised in a schema. The TPS will out of necessity have access to aspects of the
database such as accounts and stock. Because the TPS only has access to a subset of the database
this is called a subschema. There are 3 different types of schemas which may be used to organise
the database structure; hierarchical, network or relational structure.

Hierarchical Databases: are organised in a hierarchical or tree like structure consisting of nodes
and branches. Each node can have many branches but the child node can only have one parent
node.
Network Database: In networked databases the primary node in a branch is called the owner
(parent) of that group with information relevant to that topic being a member of that level 0
node. The child nodes can be linked (member) of other groups.

Relational Databases: A relational database organises information through a series of related

tables. Realtionships are formed between tables to link various types of information. Relational
databases are the most commonly used type of database. A relational database consists of a
collection of tables that store particular sets of data. The invention of the relational database
 system has standardized the way that data is stored and processed. Most of the database
management systems used today are based on the relational system.

Good Design For a TPS

A good TPS must have several important characteristics:

Good Data Placement: Commonly used blocks of data should be together to speed up data access
rates.

Short Transactions: Break up complicated and long transactions into shorter transactions to
1 improve processing time and concurrency.
3
High Normalisation: A high level of normalisation (reduction of redundant data) increases access
rates, time taken for updates and concurrency for a database

Archiving of Historical Data: Old data needs to be archived to reduce the overall physical size of
the database which increases access (including queries and reports) and backup times.

Good Hardware Configuration: The hardware should be physically capable of dealing with the
demands placed upon it including enough physical space to store the data.

1 Data Warehousing
4
consolidated

subject-oriented

historical

read only

Data is a valuable commodity which is traded and sold. This data ranges from personal
information on customers, demographics on customer bases for products, sales figures and so on.
All of this data is stored in databases called data warehouses. This data can then be used for a
 myriad of reasons. Reports can be writtenn or marketing plans may revised all based on figures
stored in a data awarehouse. AI programs are often used to look for meaningful patterns. people
who look after these data warehouses are called Knowledge Managers. Data stored in data
warehouses is used to look for patterns in credit card usage which points to fraud. Refer also to
knowledge management , financial systems , data mining , Expert Systems 

A data warehouse provides data that is consolidated, subject-oriented, historical and read only

Consolidated: data is organised in a consistent manner to allow usage of the data across
organisations.
Subject oriented: data is stored by subject to allow querying and reports.
Historical: data is stored over a long time period. A longer time frame allows better analysis of the
data.
Read-Only: The data can not be changed by users. It can only be added to.

HSC Questions on Data Warehousing

Files and TPS'

A file is a stored block of data. In a database a file is a set of related facts such as the details about
on customer or the details about a particular loan, particular product etc... batch processing and
real-time processing require different types of files and different ways to store and retrieve the
information. TPS' have five different file types:

Master File: This is the main copy of a database and is the main operational database for the TPS.
A copy of transaction data must be stored in this file.
1
5 Transaction Files: This is a collection of the transaction records. This is used to update the
transactions stored on the master file. Audirors will use these files to audit a companies
transaction records.

A Report File: A collection of data that has been formatted ready to print and present

Work File: temporary file created during a transaction

A program File: Contains code for the processing of data> This may be in SQL or another
programming language.

1 Backup Procedures
6
Organisations using TPS are very dependent on the reliability of their systems. As such backup
procedures must be well planned and recovery procedures must have a minimal disruption to the
organisation

Contents
 Recovery Process

Forward and Backward Recovery

3 Generations of Backups (grandfather, father Son)

Partial backups

Updating In A Batch

Updating In real-time

Recovery Process

A TPS may crash or have errors for any number of reasons including: hardware failure, software
failure, human error (such as entering the wrong data), viruses and worms or external problems
such as power failure/ natural disaster such as flood. In order to deal with the failures the TPS
must be able to restore correct data where possible. The recovery process is the process by which
the database is restored back to a reliable configuration. The recovery process includes:

Backups: A copy of the database is made on an ongoing basis. usually at least once a day when
system is not used a backup of the entire system will be made.

Journal: Journals record what happens in a database. There are two types of journals: transaction
1 logs which will record all the details about a transaction. Because a TPS is all about transactions a
7 transaction log will be long and detailed. Most of the time a transaction can be pined down to a
rough time and then tracked from there. The journal roll from the register will form a hard copy of
what is recorded. The second type is the database change log which shows changes made to the
database. Remember most details in the database will not change very often.

Checkpoint: Periodically throughout the day any information system will create checkpoints. All
processing will very temporarily stop while all parts of the system are synchronised. When failures
in a TPS occur the system can be restored back to the last checkpoint or any other checkpoint
chosen. as such checkpoints should be very regular, at least several times an hour. Processing can
then be resumed from the last checkpoint.

Recovery Manager: This is a program used to restore the database back to the chosen checkpoint.

1 Forward and Backward Recovery

8
There are two types of recovery procedures: backward recovery and forward recovery.

Backward Recovery: is used like an UNDO Button for a TPS. With a backward recovery the
database administrator will try to undo unwanted changes.

Forward Recovery: is like a REDO button where lost transactions are covered from the trasnaction
 journal and the backup.

3 Generations of Backups (Grandfather-Father-Son)

Grandfather-father-son is a backup system where 3 generations (backups made over 3 differnt

times) where the grandfather is the oldest and the son is the most recent backup. The phrase is a
general one and many more than 3 generations may be saved. Sometimes the most recent backup
1 is not the one we want. It maybe that for some reason an error crept into the system and it is best
9 to use an earlier configuration. the error maybe from a virus or hacker.

If the system fails during a batch process then the system then the master file may be corrupted.
This means that an earlier configuration must be used.

Banks will keep many more than 3 generations.

2 Doing Updates (batch)

0
When transactions are recorded on paper such as one of the old manual transactions using a card
then the master file is updated using a batch process when convenient. The process by its nature
is always sequential and may still involve magnetic tape. There are two stages to this process:
collection/ storage of transaction data in a transaction file, the second stage is updating master
file by processing the transaction file.

When a batch update is carried out it involves:

retrieving data from tape

batch update begins at the start of the tape

All the data is restored in the order it was stored

batch update finishes when the end of the tape is reached

Right: Manual Imprinter: These machines are not very common

anymore but if a
card is not working properly then one of these
might be used.

Left: Inside view of the Magstars with 3590 tapes

and drives. This is one of the IBM 3590 computers
similar to the ones large banks are still using. 
 Bottom Right: Tape cartridge for IBM 3590. This one only saves 10 Gb of
data. 3590 E model extended length tape cartridges that can contain up to
120 GB of data (3:1 compression). The tapes are normally in banks so that
much larger amounts of data can be stored.

Updates in Real-time

Real-time processing occurs at that time not at a later stage. In a large system this will mean that a
large number of users will be using the system at once. The steps involved in real-time processing
involve:

sending transaction data to a master file in an online database

2
1 the empoyee will perform data verification and validation as the transaction is performed (i.e.
asking customer if their details are correct)

confirmation of the completion of the transaction will be received and a receipt is handed to
customer.

Data will be stored using a direct access device i.e. harddrive and not a sequential device such as
tape drive

4.4 Other Information Processes

All information play a role in TPS' but the HSC focus' on Collecting and analysing

2 Collecting (hardware [MICR, ATM, barcode readers], forms [paper forms, on-screen forms, web
2 forms])

Analysing data (decision support systems, data mining, management Information Systems)

Worksheet for 4.4 Other Information Processes

Collecting

Collecting in TPS systems comes as a result of the generation of data from a transaction. For
example when goods are brought by EFTPOS there will be a receipt, when funds are withdrawn
2 from an ATM there will be data collected and a receipt generated. Collecting in a TPS involves
3 hardware such as MICR readers, card readers [for EFTPOS] or maybe ATMs.

hardware

forms
 Collecting: Hardware

Hardware used to collect data in a TPS include, MICR readers, ATMs and barcode readers

MICR (magnetic Ink

character recognition)
systems are commonly
used by banks in reading
the account details which
are located at the bottom
of cheques. The ink used to
print the characters
contain magntic particles. The cheques may be scanned by a teller but will normally be processed
as part of a batch much later.

2 Right: This is an MICR reader. There are many on the market

4
ATM (automatic telling machine) are used by banking customers to
withdraw money and do transactions without the necessity of walking into
a bank. When people use an ATM they are
participants in a real-time system. data is
transferred between the ATM and the banks
central computer normally using a private
leased line.

Left: ATM

Barcode Readers: Are optical (laser) devices which read barcodes by

scanning them with a laser. barcodes will store information about the
products on the shelves including product name, product price, they
often store an image which will display on a screen, an order code and sometimes other
information as well.

2 Collecting: Forms
5
Forms are used to collect data from customers. There are 3 different types of forms we will
examine:

Paper forms: will normally be processed as a batch.

On-screen Forms: are created for data entry to a database which will be updated real-time. The
computer may be connected through to a database by a network connection or more likely for a
TPS, a private leased line.

Web Forms: Web forms are much the same as On-screen forms but will be accessed through the
 internet.

Analysing Data

The transactions from a TPS are all stored in a database and will be analysed extensively to
maximise profits and marketing possibilities. The output of a TPS will become the input for other
systems such as: DSS and MIS

DSS (decision support systems):

Decision Support Systems are created to help people make decisions by providing access to
information and analysis tools. many stockbrokers now use programs that will automatically put
in requests to sell shares once they reach a certain price (either high or low). A DSS creates a
mathematical model of the system which helps decison making about actions affecting a person
organisation. Another example of a decision support system is the simple analysis tools that banks
use to help formulate loans for prospective customers. A DSS allows the users to pose what-if
questions and by changing a number of variables and then find out what the outcomes would be.
In the home loan DSS customers can analyse how paying off more each pay would affect their
loans, how a different type of loan may make it easier to make ends meet and by so doing tailor
the loan to suit the customer.

A DSS depends upon the accuracy of the maths involved in creating the model and the ability of
2 the user to accurately interpret the resulting data.
6
Data Mining is used to find relationships and patterns amongst the data transaction data stored.

MIS (Management Information Systems):

Management Information Systems provide information to managers of an organisation. This

relates to reports, statistics, stock inventories, payroll details, budgets or any other details that
assist managers with running an organisation. An EIS, executive Information System is a form of
MIS designed for upper management and provides information which might help them make
decisions ona strategic level about future directions or issues concerning managers.

There are a range of different reports that help managers make predictions and help manage a
company including:

Scheduled Reports: reports which are generated on a regular basis

Forecasting Reports: used to help make predictions about trends

On-demand Reports: generated on request to meet specific needs

Exception Reports: To report unexpected occurences

MIS and EIS are really specialist examples of Decision Support Systems (DSS)
 4.5 Issues Related to Transaction Processing Systems

Transaction processing systems have made and are making big changes to the way we look for
goods and the way they are purchased. ATMs have made it much easier to withdraw money while
internet banking has made the process of paying bills and scheduling payments very easy for
many people. But what are the downsides? How has this technology affected society overall?

For the HSC "Students learn to: 

assess the impact on participants involved in transaction processing

identify jobs that have changed and/or jobs that have been created as a result of transaction
processing, and report on the implications of these changes for participants in the system

discuss alternatives for when the transaction processing system is not available and explain why
2 they need to be periodically tested
7
identify security, bias and accuracy problems that could arise from the actions of participants"
HSC Syllabus p.47 

Contents

Nature of Work (automation of Jobs, people as Participants)

Non-Computer procedures

Bias

Importance of Data (data security, data accuracy, data integrity)

Control in Processing

Worksheet for 4.5 Issues Related To Transaction Processing Systems

2 Nature of Work
8
Changes in technology can cause stress and uncertainty for many
people. Older people who were raised with computers can find it very
stressful being forced into higher and higher levels of computerisation.
In areas involved with sales and customer service Transaction
processing system have changed the way that people work. There are
2 areas that the HSC is primarily interested in (see HSC Syllabus p 47):

the automation of jobs once performed by clerks: this impacts in a

variety of ways including~  job losses, deskilling of the workforce when
their jobs become more tedious and require less skills, reskilling where
 new skills are required when the job changes

the bypassing of clerks by people in the environment performing with, for example collecting,
ATM machines: This also impacts in a variety of ways including ~ massive job losses (including
tellers at the counters and back office staff), fees imposed on users to discourage them from going
to the counter, Customers as participants ands direct users (by completing online forms, online
transactions)

CASE STUDY: Stamps come unstuck: mail goes online

Non-Computer Procedures

When computer systems fail companies need non-computer procedures which can come into
play. This becomes very important if you have customers who want to buy goods. Companies
2
cannot afford to lose business. Forms need to be used and manual records need to be maintained
9
which will be entered as a batch when the system comes back online.

Students need to discuss alternatives for when the transaction processing system is not available
and explain why they need to be periodically tested.

Bias

Data should be free from bias. data bias refers to bias a one sided distortion of the truth within a
3 data source. The bias maybe intentional where a group such as a government body or
0 organisation is trying to push a point of view or it can be unintentional such as an individuals point
of view. data straight from a TPS rarely contains bias because of the nature of the data i.e. cash
transactions. However this data can becomes biased as people add comments or when
information may be taken out of context and becomes skewed.

3 Importance of Data
1
Data in a TPS has a different significance to many other systems because it is dealing with cash. If
data is lost it may have significant financial implications. As such it is critical that businesses have
procedures to ensure that data is secure, accurate  and that data integrity is maintained.

Data Security: data security involves safeguarding the data from malicious or unintentional
corruption or theft or data. This corruption may be from hackers, viruses, staff or natural cause
such as fire. IT professionals try to ensure data integrity by:

Restricting the levels of access by using logins and passwords with varying levels of access
depending upon requirements for access to the information stored.

Firewalls: to restrict unauthorised access by hackers

Virus checks must be carried out on a very regular basis

 security patches must be current so that any security flaws are not used by hackers or trojans

regular backups must be made and stored away from the physical location of the database

Data Accuracy: Every effort must be made to ensure that data is accurate. Data validation is used
to restrict mistakes on entering mistakes while data verification is carried out to try to pick up
errors.

Data Integrity: Data integrity describes the overall reliability of the data. Data integrity with real
time systems involves the ACID test (atomicity, consistency, isolation, and durability)

Atomicity: either all steps in a transaction are completed or the entire transaction is cancelled

Consistency: Consistency ensures that only operations that comply with database validity
constraints are allowed. For instance, a database tracking a checking account may only allow
unique check numbers to exist for each transaction. An operation that repeats a check number
should fail due to consistency and ensure that the information in the database is correct and
accurate. A network failure or a lack of disk space can also cause consistency problems.
Consistency rules enforced by the database will make sure that these situations do not leave
information in an “inconsistent” state.

Isolation: A teller looking up a balance must be isolated from a concurrent transaction involving a
withdrawal from the same account. This means that only when the withdrawal transaction is
successfully completed will the new balance be reported.

Durability: Durability ensures that once a transaction is complete the information as changed will
survive failures of the system. A system crash or other failure must not be allowed to lose the
contents of the database. Durability is often achieved through separate transaction logs that can
"re-create" all transactions from a checkpoint. Other ways include database "mirrors" which
replicate the database on another server. Backups by themselves do not provide "durability".

3 Control in Transaction Processing

2 Precautions must be taken to ensure that false or criminal transactions do not take place.

3 HSC Questions on TPS

3
2002

2003

Question 25 — Transaction Processing Systems (20 marks) Use a SEPARATE writing booklet.

(a) (i) Define real-time processing, and briefly describe a situation where real-time processing is
appropriate. (3 marks)
(ii) Describe bias in data collection, and provide an example. (3 marks)

Use the following information to answer parts (b) and (c).

Quality Fish Farm (QFF) sells fresh f ish to restaurants throughout Australia from its farm in
Tasmania. All fish are shipped by express freight in special protective boxes to ensure freshness on
arrival. QFF has a transaction processing system (TPS) that processes sales and tracks shipments.

This system includes a web-based facility used by restaurants to accept shipments. When a
shipment is delivered to a restaurant the chef inspects the shipment for freshness. The chef then
accesses QFF’s website, logs onto the sales TPS, and enters the shipment number (taken from the
box). The system then displays the items of the shipment. The chef accepts or rejects each item.
When an item is rejected, the chef is required to enter a reason. The system uses this information
to update the restaurant’s bill for the shipment.

The transaction processing system also allows orders to be entered and bills to be paid online.

(b) With reference to the information system diagram on page 19 (included below), describe the
following components and their relationship in the context of Quality Fish Farm’s information
system:  (6 marks)

• purpose;

• participants;

• data/information;

• information technology;

• collecting;

• storing and retri e ving;

• processing.
  

(c ) (i ) Describe measures that can assist accurate data entry by the restaurant employees. (3
marks)

(ii) Discuss the impact of the use of this information system on the employees of Quality Fish Farm
and the restaurants. (5 marks)

2004

Question 25 — T ransaction P r ocessing Systems (20 marks) Use a SEPARATE writing booklet.

(a) (i) Define data integrity and briefly describe ONE measure that may help to ensure data
integrity.

(ii) Define datawarehouse and describe its purpose.

Use the following information to answer parts (b)–(c).

One of Australia’s largest organisations recently conducted the country’s biggest e-voting project,
allowing its 2 million members to vote via the internet.

Each voter was sent a personal identification number (PIN) by post. The voter logged onto a
secure website with his/her membership number and PIN before the voting deadline. The e-
voting system checked that the user had completed all voting details correctly according to voting
rules. Once the vote was accepted, the voter’s details were ‘tagged’ to prevent multiple voting,
and a confirmation was generated for the voter.

(b) Describe the e-voting transaction processing system in terms of the information processes of:

• collecting;

• storing;

• processing the ‘tagging’ of voter details and counting of votes.

(c) (i) Outline backup procedures suitable for this e-voting transaction processing system so that
no votes will be lost in the event of a system failure.

(ii) Analyse this e- v oting transaction processing system to determine both its strengths and its
weaknesses.

2005

(a)(i) Define batch processing and give an example. 3 Marks

(a)(ii) Define MICR and give an example of its use. 3 Marks

Use the following information to answer parts (b)—(c).

A cinema allows customers to purchase movie tickets via the internet. Using a web browser,
customers select the movie session they wish to see and submit credit card details. The system
provides the customer with an image of a ticket which contains a unique bar code. The customer
prints the image and brings the hard copy to the cinema. Entry to the movie is via a turnstile
capable of reading that bar code.

(b)(i) Design a suitable web-based data entry screen for the customer to submit data about their
choice of movie session, and their credit card details. Indicate clearly what screen elements are
being used to input the data (eg, text field, pull-down menu, radio buttons), and justify your
choices. 4 Marks

(b)(ii) Describe the sequence in which this real-time transaction processing occurs, and identify
the main information technology required at each stage. 4 Marks

(c) The cinema company wishes to implement a system where customers can purchase tickets via
their mobile phones. The customers send a text message containing the movie session they wish
to see. An image of the ticket, with a barcode, is downloaded to the customer’s phone. The cost of
the ticket is added to their phone bill. At the cinema turnstile, the customer displays the image of
the ticket and waves the phone over the barcode reader.

Identify and discuss the advantages and disadvantages of the mobile phone system, the web-
browser system, and a conventional system where tickets are bought at the cinema. 6 Marks