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system characteristics

Role of information technology and transaction processing
For many business, a transaction refers to an exchange of goods are services for money. The earliest transaction processing systems were manual systems. Clerk would records transactions in journal or on numbered, multi part forms. These transaction would letter be transferred, manually, to a central system of hand written records or files folders responding individual customers or suppliers. These records would be setup to trigger statement of customer or checks to suppliers. Many small businesses still operate with manual transaction processing system; however, inexpensive and easy to use computer technology is finding its way into more small business

Most of the businesses, manual system presents numerous problems that are solvable by computer and communication Technologies:

Error level
With manual systems, an uncomfortable level of error often exists. Frequently, look up to the long prices, and prices incorrectly on invoices, or produce garbled journal entries or source documents. Sickness, worry, moodiness, and other inherently human variables can also contribute to high error rates in manual systems.

Temporary or permanent loss of data
Source documents and file folders are easily lost are misplaced. This often results in lost customer payments and delayed purchase or payments.

Labor intensity
Manual systems are labor intensive and, therefore, costly. Data from a single transaction often have to be transcribed several times, and many types of low volatility data have to be rerecorded by clerks every time a new transaction takes place

Poor level of service
The level of service support in manual systems is often inferior. Customers like to know immediately if goods are not in stock , when goods not in stock will be arriving , when they can expect an order to arrive , what there current status is regarding payments and so on. This level of information support is difficult to achieve with a manual system.