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Office Automation and Transaction Processing Systems, Definition of Office Automation:, Office automation is a general term that describes the different types of computer systems and, software that are used to collect digitally, store, transfer, alter and utilize office information to, execute tasks., In essence, office automation helps to manage data. Office automation allows data to move, without human intervention., , Definition of Office Automation System:, Office automation systems (OAS) are configurations of networked computer hardware and, software. So, OAS are systems that are designed to increase the productivity of clerical workers, and knowledge workers and enhance communication in the workplace., Office automation systems (OAS), also referred to as office information systems are computerbased information systems whose primary purpose is to facilitate oral and written communication., Such a system is a set of tools that gather, process, store, retrieve, and disseminate information, between individual workers, team of workers, and business entities, both inside and outside the, organization., Example:, OAS are word processing, desktop publishing, voice mail, e-mail, videoconferencing, and, multimedia systems., Features of Office Automation System (OAS):, i., , Ubiquity:, Office Automation is now a ubiquitous system. Firms around the world are ad office, automation opting it eagerly because of its immense professionalism., , ii., , Automating manual tasks:, This computer-controlled system focuses precisely in automating every possible task, to bring furthermore comfort in working., Less labor yet ensuring efficient is of great utility for any firm which is rendered by, the Office Automation system., , iii., , Lessening working-load:

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In today’s world the arena of work in firms are widening day by day to which this, very system is quite well capable. Superior ability of handling load and increasing, enjoyment in work is one of Office Automation system vital features., iv., , Multitasking:, There are so many types of customs that are performed in a firm. Office Automation, system is there to handle this massively important custom of a firm, multitasking., From opening the entrance gate to controlling temperature inside the office complex, and at the same time looking after all the necessary data processing steps and, entries„ an immense amount of work-load is handled by the system alone., , v., , Ensured feasibility:, Feasibility means practicability. Any work lacking feasibility remains questionable, and doubtful. Office Automation system always has a close look at the confirmation, of feasibility of work in an office., , Time-to-time checking of entering input and measuring output makes the work, acceptable for the managers to evaluate. Foundation of any greater effort or, improvised tasks is mainly established through feasible results., In addition, taking correct, standard and up to the mark decisions is of great utility, for managers to keep the smooth run of their firms among competitors., Feasibility of works and customs is essential to proceed here which is being ensured, by the system. That makes a legitimate sense on how much important feature it is, of the system., vi., , Office environmental sustainability:, The system is capable of making the workforce work on it, work with it. This is how, it confirms its sustainability and adaptability with the office environment., If the system is not popular and manageable to use with the workforce, the system, is on verge of failure and in this modern age of office lifestyle, Office Automation, system’s failure deteriorates the harmony of order and tasks and leads the firm, towards sheer drawbacks., , vii., , Scopes of competitive advantage:, Competitive advantage means the forward-moving plus-point of a firm over other, firms. A firm can start to think of reigning over other firms when it starts to increase, the amount of competitive advantage.

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Advantages of Office Automation Systems:, , i., , Manipulation and storage of data:, , Storage of data means saving all confidential and important documents and records, related to the office. The office automation system also consists of handling data, applications that are used for handling and creating documents, images, spreadsheets,, and files., Several kinds of word processing, as well as desktop presentation packages, are present, which will allow in creating or even editing any data., At the same time, you can also find a few dedicated applications which are needed for, images as well as spreadsheets., ii., , Management of data:, Data management happens to be one of the best and biggest advantages that come, with office automation systems. It offers several facilities such as managing data and, information that is sorted., Big business organizations can monitor and even handle projects and activities that are, big inside the office by using an electronic management system., The program schedulers, tickler systems as well as the reminder systems happen to be, some of the main features that will boost and empower your business and help you, finish work without hassle., , iii., , Exchanging data:, Exchanging data that is stored or even manipulated happens to be quite an essential, component of the office automation system., It will help in sending files, exchanging any information or data and use the method of, electronic transfer application whenever the need arises. Throughout the network, connection, all information as well as data which includes presentations, text, documents and spreadsheets could be sent within a couple of seconds only., By illustrating the nature of these office automation systems, it will allow the, employees to handle real-time and boost productivity at the same time., , iv., , More accuracy:

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The office automation system also guarantees more efficiency than any other machine., Once all bugs removed from the program or the application, it could help you get more, accuracy in your daily businesses., The programs used in this are far more effective and reliable and people who have, made this in real. It also implements an advanced business automation software which, also reduces any signs of errors., v., , Saves more time and even more resources:, The office automation system will empower all businesses to all time and money. It, will simplify all the complex tasks, help in getting a more dedicated and proper resource, and will also lead to a much bigger amount with time., An example can use to explain this. When you introduce much bigger and better, computer technologies along with communications, businesses nowadays are not, restricted to any geographical limitations., It can help in saving both money and time and the costs that people usually spend on, traveling. The digital storage is also an essential feature that will reduce the need for, preserving all hard copies., , vi., , Reduces all costs:, Since most business processes now automated, you don’t have to invest that much on, hiring any new resources or even taking care of any of these tasks which can be, executed easily by using the system of office automation., Like we all know, time saved is equal to money saved and the business enterprise could, also save a lot by automating several business processes. By saving the entire, expenditure as well as investment on other resources, the profit margins shall see an, improvement., , Disadvantages of Office Automation Systems:, Office automation systems are quite expensive when you first begin to invest in the office, automation software as well as equipment., A professional office suite or machine which can do so many things such as scanning, binding, documents and duplicating them has to cost you some money. Employers who have worked for, years might not use this function.

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They are aware of the old and manual methods which are difficult to adjust. This may also need, some time-consuming training. In any case, if the automation system doesn’t function all that well,, power will be interrupted., You will not be able to find any manual method regularly and that could add more to the, disadvantage., , Transaction Processing System, A Transaction Processing System (TPS) is a type of computerized system that collects, stores,, modifies and retrieves data transactions for an enterprise., For examples:, sales order entry, hotel reservation systems, payroll, employee record keeping, and, shipping., Types of the transaction processing system (TPS), Now, it’s time to understand the types of transaction processing system, for which is divided into two, kinds., , There are two types of TPS:, i., ii., , Batch Processing System, Online (Real-Time) Processing System, , Batch Processing System:, A transaction that is done in a batch or group is known as a batch processing system. The batch, processing is not done immediately. First, the data is collected and then placed in a group or, batch then the processing is started., Batch processing is a technique that can be useful to collect and process data. When it is more, easy or cost-effective, transactions will be gathered and updated in batches. This was the most, common method in the past due to the lack of real-time processing capabilities in information, technology., Batch processing is exemplified by a monthly membership service. Because the transactions, occur concurrently, the system processes them as a batch at the end of the month when each, client pays for a service. Because the system scans batches just once a month, a lag in transaction, processing is acceptable in this circumstance.

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Examples of batch processing systems are:, •, •, , Credit card transaction, Payment by cheque, , Online (Real-Time) Processing System:, A transaction that is done immediately without any delay is known as an online transaction, processing system (OLTP). It is also known as a real-time transaction. It may entail a large number, of users performing data-changing transactions concurrently., , Examples of OLTP are:, •, •, , Use card for payment, Online transaction, , Characteristics of Transaction Processing System:, The four important characteristics of a transaction processing system include:, i., , Rapid Response, Rapid response is very important for rapid performance is critical and also the time, required to complete a transaction from input to output must be a few seconds or less., , ii., , Reliability, In reliability, the transaction processing system, however, helps to breakdowns cause, operations to be disrupted. It also minimizes the rate of failure, and in the event of an, error, you must be able to recover swiftly and precisely., , iii., , Inflexibility, Here each transaction must be treated uniformly, not only that, its flexibility results in, an overabundance of non-standard operations that can create complications due to data, inconsistencies., , iv., , Controlled Processing, Transaction processing system hence must assist an organization’s operations, and If, assignments of duties and responsibilities are made, the TPS should guarantee that they, are carried out., , Components of the transaction processing system (TPS), The components of TPS are:

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•, •, •, •, , i., , Inputs, Storage, Processing, Output, , Input, , An input is a product request or payment that is payable to a company’s TPS by a third, party. Hence, if your organization employs batch processing, your TPS will save and, process groups of inputs. In comparison, if your business makes use of a real-time, system, each input is processed in real-time. Typical inputs include the following:, •, •, •, •, , ii., , Invoices, Bills, Coupons, Custom orders, , Storage, The storage component of TPS relates to the location of a business’s input and output, documents or digital information. However, certain businesses maintain these records, electronically in a database. The storage component thus ensures that each document, is properly in order, safe, and retrievable for future use. If a vendor wishes to confirm, that your company has paid an invoice, for example, you can search for the invoice in, your system’s storage and determine whether you made a payment., , iii., , Processing, The processing component of the system is responsible for reading each input and, generating a useful output, such as a receipt. This element can also be useful to define, the input and output data. Processing timeframes hence vary according to the type of, TPS used by your business., , iv., , Output, , The outputs of a TPS are the documents that the system generates once all of the inputs, have been processed. This may include receipts stored in the business’s records. These, documents may be useful in verifying a sale or transaction. Additionally, they can be a, significant source of information for tax and other government-related purposes. If a, vendor submits an invoice to your business, for example, you can pay the invoice and, provide payment confirmation to the vendor. Once revised, the original invoice can be, listed as “paid” in the company’s TPS.

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Benefits of Using a Transaction Processing System:, The following are some of the most common benefits of using a TPS:, i., , Increased Transaction Speed, , With a TPS in place, businesses may effectively increase both the speed of each transaction, and, minimizing client wait times. The rate at which a business processes transactions, varies according, to the type of TPS used. While some systems execute transactions immediately, others accumulate, transaction data over time and process it later, typically after business hours., ii., , Cost-Effectiveness Increased, , Utilizing a TPS can assist a business in saving money, increasing both transaction costeffectiveness, and archiving data in a database. A TPS may conduct and organize thousands of, transactions during the day. This can thus save the business money by avoiding the need for system, upgrades or the utilization of several systems to meet demand., iii., , Improved Reliability, , The reliability of transaction processing systems is a critical attribute. However, utilizing a TPS, enables you to ensure that consumer transactions are in execution, quickly and accurately., Additionally, a reputable TPS can save your business money on future troubleshooting and coding, charges associated with faulty systems., iv., , Automated Management, , A corporation’s TPS enables the automation of the majority of its internal resource and revenue, management. However, by increasing automation, the TPS can decrease the amount of time staff, spend evaluating transactions. Automation is vital for increasing a company’s profitability since it, frees up individuals to focus on interesting occupations that require critical thinking., , Transaction Processing Cycle:, Transaction processing cycle refers to a cycle of basic transaction processing activities including, data entry, transaction processing, database maintenance, document and report generation, and, update organizational files and database and produce a variety of information for internal and, external use., Transaction processing cycle generally go through a five-stages, i) Data entry activities, ii) Transaction processing activities

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iii) File and database processing, iv) Document and report generation, v) Inquiry processing activities., , i., , Data entry, , The input activity in transaction processing systems involves a data entry processes. In, these processes, data is captured, or collected by using optical scanning of barcodes or, recording, coding, and editing activities. Then the data may be converted to a form that, can be entered into a computer system., ii., , Transaction processing, , Transaction processing systems process data in two online processing, batch processing, and real time processing., a. Batch processing:, Where transaction data are accumulated over a period of time and proceed, periodically., b. Real-time processing (on time processing):, Where data are processed immediately after a transaction occurs., iii., , File and database processing, , Transaction processing system update the corporate databases of’ an organization to reflect, changes resulting from, day to day business transaction. File and database processing are, the basic activities of transaction processing systems. These are also known as file and, database maintenance which means that an organizations files and database must be, maintained by its transaction processing systems so that they are always correct and up-todate., iv., , Document and report generation, , The final stage in the transaction processing cycle is the generation of information, products such as documents and reports., For example, purchases order payable register-etc., v., , Inquiry processing

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Transaction processing systems alert a person to make inquiries and receive response, consulting the results of transaction processing activities. For example, you might check, on the balance in an account and receive immediate responses at your PC.