They work at the operational level where tasks, resources and goals are predefined and are highly structured. They are the basic business systems and are often central to a business such that transaction processing system and are often central to a business such that TPS failure can lead to loss of data for other organizational levels.
A TPS can be defined as a computerized system that performs and records the daily routine transaction necessary to conduct business e.g. hotel reservation system, payroll, employee record keeping, sales order entry, airline booking system, etc. Managers use TPS to monitor the status of internal operations and the firm’s relations with external environment.
The objective of TPS is to provide all information so that the business can run efficiently
- TPS provide timely documents and reports
- They increase the competitive advantage of an organization
- TPS provide necessary data for tactical or strategic system e.g. MIS and DSS
- TPS are the backbone of any organization and they monitor, collect, store, process and disseminate information for all routine significant business applications
Functional information systems begin by the computerization of routine transaction processes. The objective of transaction processing systems is to provide all information by law or organization policies to keep the business running efficiently. Specifically the TPS provides timely documents and reports. They increase the competitive advantage of an organization and provide necessary data for tactical or strategic systems such as MIS and DSS. They also assure accuracy of data and information besides safeguarding assets and security of information. These systems are the backbones of any organization. They monitor, collect, store process and disseminate information for all routine significant business applications.
Kavungya answered the question on May 10, 2019 at 10:27
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