Sysytems Evaluation Paper

Every organization has a need for a transaction processing system (TPS). A TPS processes the detailed data necessary to update records about the fundamental business operations of the organization.

HOW THE SYSTEM IS USED

Transaction processing is supported by programs that are called transaction processing systems. These systems include order entry, inventory control, payroll, accounts payable, accounts receivable, and general ledger. For most organizations, TPSs support routine day-to-day activities that occur in the normal course of business that help the company add value to its products and services. By adding a significant amount of value to their products and services, companies insure further organizational success. Processing orders, purchasing materials, controlling inventory, billing customers and paying suppliers are all business activities that result from customer orders. These activities produce transaction data that are stored and processed by TPS. One objective of any TPS is error-free data input and processing.

HOW THE SYSTEM HAS HELPED THE ORGANIZATION

The use of computerized TPS significantly reduces the response time of producing routine reports. Manual transaction processing would take days. Transaction processing systems can substantially reduce clerical and other labor requirements. The TPS replaces the room full of clerks, typewriters, and filing cabinets. A firm’s transaction processing system is often a means for customers to communicate. This will help build and maintain customer loyalty. A goal that is common among most organizations is to gain and maintain a competitive advantage over their competition. Depending on the nature and specific goals of the business, TPS can help provide some or all of the following: customer loyalty increased, superior service provided to a customer, better relationship with suppliers, superior information gathering, and costs dramatically reduced.