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In: Finance

At a fundamental level of analysis, we can conceive of the ‘point of sale’ data capture...

At a fundamental level of analysis, we can conceive of the ‘point of sale’ data capture of a business event, transaction processing, data storage, and ultimately data analysis and production of a business intelligence (BI) report. Explain how this overall sequence of activities occurs. Your explanation should focus the role of the TPS (1 mark), the two major processing options that may be used by the TPS , the role and major limitation of the production database (1 mark), and finally the role of the OLAP database (1 mark).

Solutions

Expert Solution

ANS:

Role of TPS ( Transaction Processing System)

TPS processes the companys'business transaction & support the day-to-day operation of an organisation. It records the Non- query transactions in the database & produces the Output in form of reports of transaction. The major role or activities involved in a TPS are -

  1. capturing the data & organising the files in the database
  2. Processing the files using the application software
  3. Generating informations in form of reports
  4. Processing queries of the organisation.

The two major processing options that may be used by the TPS are -

  • Batch Processing - In this recording of transaction is done batch-wise i.e the transactions are accumulated over a period of time & processed as a batch wise or as a single unit.
  • Real-Time Processing - In this the transactions are being recorded as & when they incurred. It is also referred as Online Transaction processing (OLTP).

Role of Production Database -

Production Database contains the details of production task which ensures availability, usability & efficiency. It's general role is capacity Planning, performance monitoring, utilisation of resources etc.

Limitations of Production Database -

  • These database are complex, Difficult to use & time consuming
  • Involves High Conversion costs.

Role of the OLAP database are -

  • Enables the users to analyse the multi-dimesional data from different views.
  • Provides the capability of fast processing of data by the interactive & consistent interfaces.

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