The Operational Level of Information Systems: Transaction Processing System (TPS)

A transaction Processing System or TPS is at the lower level of the pyramid model are generally data processing systems utilized by operational staff.  Occasionally supervisory staff will also operate these systems, but generally the operational staff are those that are on the front line of the day-to-day business operations. 

Utilizing TPS systems, staff input data such as customer or vendor transactions, data such as sales or coupons, pricing, mark-ups or depending on the organization, events and time-frames.  Some examples of how TPS systems can be used is in processing payroll, customer orders, reserving rooms or even payment of invoices.  This resulting data can be sorted, merged, calculated, or reported depending on what information is needed.  The information can be compiled into simple lists or detailed reports. 

This basic information is important for the rest of the company and is used for the purpose of providing information to upper level management to see how an organization is performing.  The efficiency of the structure can also be determined by the data gleaned.  TPS systems are very valuable in tracking multiple areas of organizations and are used by the majority of companies today in some form or fashion.  There are many options to choose from, just be sure to do the research to see which one is the best for you.