Analyzing the Value of an Information System

Transaction processing systems (TPS) are organized collections of people, procedures, software, databases, and devices used to record completed business transactions. These systems are computer-based. A transaction is any business-related exchange such as payments to employees, sales to customers, or payments to suppliers. Therefore, transaction processing systems collect, store, adjust, and reclaim these exchanges of an organization. Processing these transactions was the first computer application made for most organizations. There are different stages that transaction processing systems go through, each having a huge level of importance within an organization. The collection, processing, and storage of data that transaction processing systems are accountable for can be incorporated into the upstream management of the organization. Before storing the data, TPSs must edit and correct any data if needed. The TPS then stores the data in order to produce documents or reports if needed. This data can be used to serve customers through a computer or machine.

An example of a transaction processing system is automatic teller machines at banks (ATMs) since a person can withdraw money from the bank with just the use of a computer. The storage in this case would be the money stored in the bank accounts as well as in the machine that a person is going to withdraw. Storage within a TPS is extremely important since it may be dealing with a person’s money or any other personal and important information. When a person wants to draw money from their account, they simply work through the machine and the money is deducted from their bank account and is ejected from the machine. ATMs will work anywhere as long as a person has their card and it is acceptable to the machine. This serves as customer service since ATMs are basically in all places. Each ATM is interconnected to banks by electronic means, serving the bank customers everywhere they go. The finished product storage of this TPS would be the customer receiving the money they withdrew and having their bank account accessed through the machine to keep their money accounted for.