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“Data processing and data
management are critical
components of business
Data, Information, and Knowledge

• In data processing and management, there’s a distinction

between data, information, and knowledge.

• consist of raw facts, such as customer

names and addresses
• specifically a collection of
mathematical truths and facts, an is
statement of some sort, without any

• is data that has context, showing

movement and action of some
specific entity
• is a collection of facts organized in
such a way that it has more value
beyond the facts themselves

• Is essentially information in the hands

of an experienced analyzer
• is the body or rules, guidelines, and
procedures used to select, organize,
and manipulate data to make it
suitable for specific tasks
Data, Information, and Knowledge

• Turning data into information is a process or a set of

logically related tasks performed to achieve a defined
• Consequently, information can be considered data made
more useful through the application of knowledge.
Characteristics of Valuable Information

1. Accurate. Accurate information is free from error.

2. Complete. Complete information contains all of the important
3. Economical. Information should be relatively inexpensive to
4. Flexible. Flexible information can be used for a variety of
purposes, not just one.
5. Reliable. Reliable information is dependable information.
Characteristics of Valuable Information

6. Relevant. Relevant information is important to the decision-

7. Simple. Information should be simple to find and understand.
8. Timely. Timely information is readily available when needed.
9. Verifiable. Verifiable information can be checked to make sure it
is accurate.
Data Processing

• refers to the process of performing specific operations on

a set of data or a database
• includes all operations performed on data
• Disclosure
• Management
• Use
• Collection
Data Processing

• Strategic Goal: to convert raw data into meaningful

information that improves a current situation or resolves
an existing problem
• Outputs: often take various forms such as reports,
diagrams and graphics that make the data easier to
understand and analyze.
Types of Data Processing
1. Manual Data Processing
• the “old-fashioned” way of doing it before the invention of calculators
• done manually (“by hand”)
• slow and all mistakes are due to “human error.”
2. Mechanical Data Processing
• Use of typewriters and calculators
• speed and errors were still very much a function of “human operators”
3. Electronic Data Processing
• uses computers to facilitate processing requirements
• instructions provided by human users and programmers
Data Processing Cycle
1. Input – involves collecting data as well as entering it and
then preparing it for the next part of the cycle.
2.Processing – data is manipulated according to
instructions and parameters programmed into the
processing application
3. Output – results that are printed or displayed on a
computer monitor.
Data Processing Cycle

4.Interpretation – Assessing and analyzing results: What

does the data mean?
5. Feedback – Comparing output with desired results: How
can data be processed better?
6.Storage – Archiving the data (either physically or
electronically) for future use.
Steps in Business Data Processing
• Editing – the critical first step: extracting and editing relevant data
• Coding – also known as bucketing or netting and aligns the data in a
systematic arrangement that can be understood by computer
• Data Entry – Entering the data into software
• Validation – After a “cleansing” phase, validating the data involves
checking for desired quality levels.
• Tabulation – Arranging data in a form that facilitates further use and
Data Management

• The administrative process by which the required data is

acquired, validated, stored, protected, and processed, and
by which its accessibility, reliability, and timeliness is
ensured to satisfy the needs of the data users.
Data Management Benefits
Organizations can reap many benefits from data management in
these 5 key areas:
• Product development
• Market development
• Operational efficiency
• Customer experience and loyalty
• Market demand predictions
How Data Management Works

• Data management is primarily handled at the data

center, whose main focus is to ensure that data can be
accessed by users when they need it while at the same
time maintaining security and protection.
Four Pillars of Data Management

1. Provisioning - refers to data storage in including

functions such as:
• storage management • object management
• I/O performance management • metadata management
• data tiering • access management
• capacity management • I/O troubleshooting
• access protocol management • security.
• RAID management
Four Pillars of Data Management

2. Protection
• includes making sure that the storage and protection
technology used is appropriate for the data type and
Four Pillars of Data Management

3. Replication
• ensures the availability of data even during instances
when technology changes or something in the system
goes wrong
• areas covered: networking, capacity management,
recovery service levels, business continuity, and more.
Four Pillars of Data Management

4. Recovery
• ensures that business operations continue even if
something breaks.
• includes data service level agreements, data retention
policy management, data archiving, and facilities
management among others.
Traditional Approach to Data Management

• consists of maintaining separate data files for each

• Example: an employee file would be maintained for payroll
purposes, while an additional employee file might be maintained
for newsletter purposes
• One or more data files are created for each application
• Duplicated files results in data redundancy
Database Approach to Data Management

• Developed to overcome potential problems with

traditional data management.
• multiple business applications access the same database
• provides the opportunity to share data, as well as
information sources
• A database management system (DBMS) is needed.

• refers to a collection of electronic records that could be

processed to produce useful information.
• a collection of information that is organized so that it can
be easily accessed, managed and updated.
Database Management System (DBMS)

• a software package designed to define, manipulate,

retrieve and manage data in a database
• generally manipulates the data itself, the data format,
field names, record structure and file structure
• query languages, such as SQL, are used along with the
DBMS package to interact with a database
Schematic Diagram of a DBMS
DBMS Examples

• MySQL • Oracle
• PostgreSQL • RDBMS
• Microsoft Access • dBASE
• SQL Server • Clipper
• FileMaker • FoxPro