3.1) Transaction Processing and Enterprise Resource planning

Question 1

What is transaction processing?

Answer 1

Transaction processing is a style of computing, typically performed by large server computers, that supports interactive applications”

Question 2

What does transaction processing systems consist of?

Answer 2

Transaction processing systems consist of computer hardware and software hosting a transaction-oriented application that performs the routine transactions necessary to conduct business”

Question 3

What are examples of transaction processing systems? (2)

Answer 3

• Examples include systems that manage sales order entry, airline reservations, payroll, employee records, manufacturing, and shipping.
• The process takes place in a Transaction Processing System (TPS)

Question 4

What are transaction processing system objectives (TPS)? (4)

Answer 4

• Carrying out the day-to-day transactions
• Collecting, capturing, processing,
  editing, updating, storing the data,
  and generating the required reports
  or documents which would help in
  making timely decisions.
• Supplying the necessary information to the organization, which would enable proper functioning of the business.
• Supplying data to other information systems.

Question 5

What is the transaction processing process? (8)

Answer 5

1. Does the account have sufficient funds for withdrawal?
2. Yes
3. Debit the account
4. Account is debited pending disbursement
5. Money disbursed
6. Confirm debit
7. Debit confirmed
8. Receipt is printed

Question 6

What are the characteristics of a transaction? (8)

Answer 6

• Atomicity
• Consistency
• Isolation
• Durability
• Rapid Processing
• Reliability of Processing
• Standardization
• Controlled Access

Question 7

What is meant by atomicity

Answer 7

All-or-Nothing: A transaction is treated as a single, indivisible unit of work. Either all its operations are successfully completed, and the changes are applied to the
database, or none of the changes are applied. There is no partial execution or partial commitment.

Question 8

What is meant by consistency?

Answer 8

Preservation of Database Invariants: The execution of a transaction brings the database from one consistent state to another. If a transaction violates any integrity constraints, the entire transaction is rolled back.

Question 9

What is meant by isolation?

Answer 9

Concurrency Control: Each transaction is executed in isolation from other transactions, meaning that the intermediate states of a transaction are not visible
to other transactions until the transaction is committed. For example, payment platform will not appear if you don’t have product data input.

Question 10

What is meant by durability?

Answer 10

Permanent Changes: Once a transaction is committed, its effects on the database are permanent. The changes made by the transaction are durable and survive system failures such as power outages or crashes. Durability is typically achieved through mechanisms like transaction logging and database backups. Think of what happens when you change cell phone numbers on Amathuba?

Question 11

What is the design of a TPS based on? (3)

Answer 11

• execution details of the transactions
• data content and format (online forms or
  attachments); and
• rules and policies [e.g. POPI Act]to be enforced.

Question 12

What are TPS’s capable of? (3)

Answer 12

• enforcing rules and work procedures
• detecting errors, such as missing data, invalid
  data, and inconsistent data; and
• automating certain decision-making functions.

Question 13

What are the phases of data processing? (4)

Answer 13

Phase 1: Data input
Phase 2: Data processing
Phase 3: Data storage
Phase 4: Information output

Question 14

What does phase 1, data input include? (2)

Answer 14

• Data Collection
• Preparation of data:
  (Ensuring accuracy of information and that compay policies are followed)

Question 15

What does phase 2, data processing include? (3)

Answer 15

• Data editing
• Data correction
• Data manipulation

Question 16

What are the methods of data processing? (3)

Answer 16

1) Batch processing
2) Online real-time processing
3) Online batch processing (mix of the two)

Question 17

What is batch processing? (3)

Answer 17

• Batch processing involves processing transactions in groups or batch at once as opposed to processing transaction one at a time.
• Batch processing is useful in managing ;arge transactions such as payroll or month-end unitality bills
• It requires dedicated stuff member

Question 18

What are the advantages of batch processing? (7)

Answer 18

• Cheaper
• The batch systems can manage large repeated work easily.
• Repeated jobs are done fast in batch systems without user interaction.
• You can assign specific time for the batch jobs so when the computer is idle it starts processing the batch jobs i.e. at night or any free time.
• Batch systems can work offline so it makes less stress on processor
• You don’t need special hardware and system support to input data in batch systems.
• Sharing of batch system for multiple users

Question 19

What are the disadvantages of batch processing? (4)

Answer 19

• Time delays
• Computer operators must be trained for using batch systems.
• It is difficult to debug batch systems.
• If some job takes too much time
  i.e. if error occurs in job, then other jobs will wait for unknown time.

Question 20

What is real time data processing? (2)

Answer 20

The computer system processes data immediately after capture and provides updated information to users on a timely basis.

• E.g = Point of Sale (POS) Systems to update inventory, provide inventory history, and sales of a particular item - allowing an organization to run payments in real time.

Question 21

What are the advantages of real-time processing? (6)

Answer 21

• Accessibility.
• Errors within the organisation are known instantly.
• Service improves dramatically
• Cost savings
• Better sales insights, which could lead to additional revenue
• Keep up with customer trends

Question 22

What are the disavantages of real-time processing? (3)

Answer 22

• The server must always be online.
• This can be expensive (processing time and resources)
• Less secure

Question 23

What is meant by phase 3, data stroage?

Answer 23

• Data storage refers to magnetic, optical or mechanical media that records and preserves digital information for ongoing or future operations” .
• Data storage enable quick access to data to use for various
  business transactions

Question 24

What are computer-based storage concepts? (5)

Answer 24

• Entity – something about which information is stored, i.e. customer, product etc.
• Attributes – Facts/properties about an entity (Examples: Customer number, name, and address)
• Field – Where attributes of an entity are stored. For example, in a spreadsheet each row might represent a customer and each
  column is an attribute of a customer. Each cell in a spreadsheet is a field.
• Record – An entry in the database
• DB - Database

Question 25

What occurs during phase 4 of ERP, information output? (7)

Answer 25

• The stage where processed
  information is now transmitted to the user.
• The data stored in the database files can be viewed
• Online (soft copy)
• Printed out (hard copy)
• Document (e.g., sales invoice)
• Report (e.g., monthly sales report)
• Query (question for specific
  information in a database, e.g.,
  What division had the most sales for
  the month?)