Transaction processing was one of the first business processes to be computerized. Without Information systems, recording and processing business transactions would consume huge amounts of an organization's resources.
The Transaction Processing System (TPS) also provide data to employees that are involved in other business process such as The Management Information System (MIS), Decision Support System (DSS) and Expert System (ES). A Transaction Processing System serves as the foundation for other systems.
TPS perform the same routine operations daily. The amount of support for decision making that a TPS directly provides to managers and workers is low. This system requires a large amount of input data and produces a large amount of output without requiring sophisticated or complex processing. Its main purpose is to computerize existing manual system for faster processing, reducing clerical costs and improved customer service.
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