Managing business operations
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Batch Processing Vs Online Transaction Processing in Transaction Processing Systems and Enterprise Systems
Batch Processing means implementing a series of transactions in a group, typically at a scheduled time or under certain conditions. Also, batch processing is cost-efficient and provides effective management of huge volumes of information. Example of Batch Processing Batch processing is specifically essential for financial services where periodic reports that involve bank statements can be produced in huge amounts at the end of a financial cycle.
Advantages of Batch Processing
There are various advantages of batch processing the first advantage of batch processing is that it is suitable for managing huge amounts of transactions at once minimizing the requirement for constant system management. The design has benefits such as combining live streaming with processing large amounts of old data in real time and reducing the need for human involvement in the system (Habeeb et al., 2019).
Challenges of Batch Processing
There are various challenges of batch processing the first challenge of batch processing is the lack of real-time insights as the delay in processing refers to companies do not get quick feedback on the status of their transaction.
Online Transaction Processing
Online transaction processing includes real-time transaction processing that allows users to interact with the system quickly. Online transaction processing support is continuous and makes sure that the information is correct. An example of Online transaction processing is that it is essential in e-commerce. The quantity of Internet transactions has significantly increased, and a substantial portion of these transactions is comprised of online credit card transactions (Thennakoon et al., 2019).
Advantages of Online Transaction Processing
There are various advantages of online transaction processing the first advantage is that online transaction processing provides quick transaction feedback that makes it suitable for companies needing real-time information such as point-of-sale systems in retail.
Challenges of Online Transaction Processing
There are various challenges to online transaction processing the first challenge of online transaction processing is that it has a high price as real-time processing needs more systems resources which makes online transaction processing more expensive to implement and maintain specifically for small businesses.
Impact on Business Operations
Large companies with non-urgent, huge amounts of data processing requirements such as financial institutions benefit from batch processing. On the other hand, small and medium-sized enterprises and companies that need quick transactions such as retail and e-commerce will choose Online transaction processing to keep real-time visibility and openness.
References
Habeeb, R.A.A., Nasaruddin, F., Gani, A., Hashem, I.A.T., Ahmed, E. and Imran, M., 2019. Real-time big data processing for anomaly detection: A survey. International Journal of Information Management, 45, https://core.ac.uk/download/pdf/544394658.pdf
Thennakoon, A., Bhagyani, C., Premadasa, S., Mihiranga, S. and Kuruwitaarachchi, N., 2019, January. Real-time credit card fraud detection using machine learning. In 2019 9th International Conference on Cloud Computing, Data Science & Engineering (Confluence) , pp. 488-493. IEEE. https://www.researchgate.net/profile/Nuwan-Kuruwitaarachchi/publication/334761474_Real-time_Credit_Card_Fraud_Detection_Using_Machine_Learning/links/5d3ff7534585153e592d0d8e/Real-time-Credit-Card-Fraud-Detection-Using-Machine-Learning.pdf
