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Transaction processing for the airline industry began in 1958 when the industry jointly developed of a centralized, online, real-time reservation system for American Airlines. Transaction Processing Systems or TPSs have come a long way since its humble beginnings. To understand how a transaction processing system can benefit our company, one must understand what kind of information it can provide our business. This information system software can analyze several different aspects for the company and provide reliable and expedited means of collecting data at the same time. All forms of this kind of software display the following benefits to assist in the gathering of information and processing in real time.
Simply stated a transaction processing system is a system that repeatedly processes various transactions. TPS tends to be on the more rigid side and has the following characteristics, performance, reliability, consistency, and atomic. The ability to provide reliable and expedited processing is imperative to our business and we should be able to get the customer in and out with their product as fast as possible. When the customer has made the decision to purchase something, they do not want to be delayed due to the inadequacy of a business to be able to process a payment. The simple ability to be able to put the purchase on account or collect the form of payment should not take more than a moment. These systems must be operable at all times and without fail or error. One digit in the wrong place of the code will cause the transaction to be null and void. Once a transaction is started, it must be completed. Every business must ensure that their TPS will always be standardized for every transaction as well. All of these characteristics combined are significant because they ensure the system will be up to date, preserve the order of occurrence, and handle multiple input sources at once. It may seem that a Transaction Processing System is geared more towards the sales and reservations side of the business, but it can also benefit the HR and marketing departments as well. With batch transaction processing, the system will gather data over a specific period and then process them all at once. For example, a streamlined TPS can gather employees’ work hours for each pay period and process all the hours to calculate paycheck amounts. This can keep track of hourly wages, overtime and predict employee costs. It can also keep up to date employee records. This transaction processing system also cross into inventory control systems which give the business a means to be able to have a quick reference to control and count. This helps with auditing and gives the initial reference sheet to do physical counts with in real-time. This means that at any given point and time the business knows exactly how much of any certain product they have on-hand. This helps with future analysis for certain periods of anticipated sales. Some points throughout the day or even the year, the company may sell more than other periods and this will help them plan accordingly for these heightened periods to ensure they have enough products or representatives to provide their services. They can also use the batch processing option which basically takes a certain time period all together rather than real time being to the minute processing. This gives the reports for a predetermined expanded time period.
This software is provided by several different companies like IBM, KAL, POS and many more. Depending on the type of business a person is running will determine the correct software and features would be necessary to assist the business in the day-to-day operations.
There are many different types of transaction processing systems, such as payroll, inventory control, order entry, accounts payable, accounts receivable and others. Transaction processing produces valuable input into many other systems in an organization, such as management information systems and decision support systems. A TPS serves as the foundation for these other systems. The only disadvantage of the Transaction Processing System I have found is that it might not provide much support for decision making, but that should not a deciding factor among so many advantages.

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