What is the main function of a Transaction Processing System (TPS)?

The main function of a Transaction Processing System (TPS) is to collect and store data from daily transactions. A TPS is designed to handle a large volume of transactions efficiently and to ensure that these transactions are processed accurately and securely. This system captures the details of each transaction that occurs within an organization, such as sales, payments, and other business operations. By doing so, it provides real-time data that is critical for day-to-day business functioning.

The accurate recording and storage of transaction data are vital because this information serves as the foundation for various business operations and decision-making processes. It can be used to generate reports, monitor financial performance, and ensure compliance with regulations.

Analyzing historical data trends is a function more closely associated with decision support systems (DSS) or data analytics systems, which utilize the stored transaction data but do not perform the actual transaction processing.

Designing strategic initiatives is a higher-level management function that relies on data from various sources, including TPS data, but is not a direct function of a TPS itself.

Providing training for employees is an organizational support function and may utilize information systems, but it is not a function of a Transaction Processing System. Thus, the primary focus of a TPS remains on the collection and storage of data from