Online Transaction Processing

Online Transaction Processing (OLTP) is an implementation of a transaction processing system — a cross-functional information system that processes data resulting from a business transaction. It plays a key role in e-commerce, where businesses use the Internet and smaller networks to connect with their customers and other businesses electronically. Online Transaction Processing operates in real-time; it captures and processes information immediately.

The transaction processing cycle:

Batch Processing: collecting data over time and processing it periodically.

Real-time Processing: processing data immediately following a transaction, as in an online purchase.

1. Data Entry: capture of business data (e.g., a customer selects items and enters quantities, enters shipping and billing information).
2. Database Maintenance: updating the company's database to reflect day-to-day business transactions.
3. Document and Report Generation: the production of summaries of transactions (e.g., purchase orders, sales invoices, error reports).
4. Inquiry Processing: checking on the status of a transaction in progress (e.g., order status, package tracking).