Methods of Data Processing

Learning Objectives:
Review data processing. Be able to differentiate types of processing data. Know the different methods in data processing.

Data Processing
consists of gathering the data input, evaluating and bringing order to it, and placing it in proper perspective so that useful information will be produced.

Data Processing Functions

Input
Recording, Validating, Communicating

Process
Classifying, Sorting, Summarizing, Calculating, Posting, Comparing

Output
Reporting, Communicating

Storage
Storing retrieving
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Classify
Input
John 40 Greg 42 Donna 39 Dave 40

Process

Output TNHW < 40 = 40 > 40

Count 1 2 1

Sort
Input Schapiro Jones Martinez Aponte Powell Output Aponte Jones Martinez Powell Schapiro
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Process

Summarize
Input Enter Quiz Score: 95, 63, 75, 78, 85, 92, 70, 77, 95, 87

Process
(95 + 63 + 75 + 78 + 85 + 92+ 70+ 77+ 95+ 87) / 10

Output Average Score is: 81.7

Calculate
Input How many units? 1500 Price? 6.85 Discount? 0.15

Process
1500 * 6.85 * .15 = 8733.75

Output Invoice 1500 units at 6.85 with 15% discount Balance Due $8733.75
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Compare and Post

Input Account no? 12345 This purchase? 54.82

Process
54.82 + 35.03 = 89.85 is less than 1000?

Output Credit OK
Storage:
Account no: 12345 Previous: 35.03

Credit Limit: 1000

New Balance is: 964.97
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Two Types of Data Processing

Manual
use of tools and materials such as pencils, pens, multiplecopy forms, carbon paper and filing cabinets.

Computerized
mechanical use of mechanical equipment such as type writers and adding machines with constant human intervention. Electronic use of electronic computer with minimal human intervention.

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Methods of Data Processing

How do we process these data?

Methods of Data Processing

Batch processing On-line processing Real-time processing

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Batch processing
A data processing technique in which transactions are collected into groups, or batches, for processing.
Batch jobs are set up so they can be run to completion without manual intervention, so all input data is preselected through scripts or command-line parameters.

Batch processing has these benefits:

It allows sharing of computer resources among many users and programs, It shifts the time of job processing to when the computing resources are less busy, It avoids idling the computing resources with minute-by-minute manual intervention and supervision, By keeping high overall rate of utilization, it better amortizes the cost of a computer, especially an expensive one.

On-line processing
A data processing technique in which transactions are processed directly for storing and retrieving data. (Inquiry, Menu, File Maintenance)
a class of systems that facilitate and manage transaction-oriented applications, typically for data entry and retrieval transaction processing.

On-line processing has these benefits:

Simplicity Efficiency
Reduced paper trails and the faster, more accurate forecasts for revenues and expenses are both examples of how OLTP makes things simpler for businesses.

Real-time processing
Data processing that appears to take place, or actually takes place, instantaneously upon data entry or receipt of a command.
A real time system may be one where its application can be considered (within context) to be mission critical.

Users of IT
Who uses the system? Who uses the data?

MIS (Management Information Systems) CIS (Computer Information Systems) Computing Services Information Services

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 Data entry operators

prepare data for processing by keying it in a machine readable format.

Computer operators
monitor the computer, review procedures, keep peripheral equipment running, and make backup copies of data.

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 Librarians
catalog the processed disks and tapes and keep them secure.

Computer programmers
design, write, test and implement the programs that process data on the computer system; they also maintain and update programs.

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 Systems analysts
Knowledgeable in the programming area but have broader responsibilities. They plan and design not just individual programs but entire computer systems. S.A. Maintain a working relationship with programmers and the users of the organization. The analysts work closely with the users to plan a new systems that will the users needs.
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 Network manager
implements and maintains the organizations network.

Chief Information Officer (CIO)

the department manager, must understand more than just computer technology. This person must understand the goals and operations of the entire organization and be able to make strategic decisions.
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 End users
The user of Information System.

Ordinary users
people who uses computer on day to day basis.

Note: There are some specific jobs and standard titles. There are may others, most specific to the organization.

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Applications of Information Technology

Applications of IT
Transportation Law enforcement Money Agriculture Education Home Health and medicine
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Uses of Information Technology

Information Technology - applications of computers and technology. Two sections of information technology applications Common systems - applications common to most organization that employ people to produce goods and services (ex. Payroll processing). Industry-specific applications - presents applications unique to a particular type of industry or organization (ex. Point-of-sale system used in the retail industry).

Applications of IT common to most organization

Payroll - involves salary given to employees of the company
two primary outputs of a payroll are payroll checks and stubs for the employees and a payroll register (summary report) of the payroll transaction.

Accounts receivable - keeps track of money owed the company on charges of goods sold or services rendered.
When a customer purchase something a bill, invoice or statement reflecting the balance due. Management relies on accounts receivable system to identify overdue accounts, reports are generated is an account is overdue by more than 30, 60, or 90 days.

Accounts payable - the other side of accounts receivable system, it involves how much the company owes another.
The company is sent an invoice to know how much they owe a company for service, purchase, etc., then the accounts payable system balances finances.

 General Ledger - keeps track of monetary transactions that occur such as payment of a bill and interdepartmental transfer of funds. Helps create the organizations financial statements. Inventory Management and Control - monitors the quantity on hand and the location of each inventory item (ex. Fixed-assets such as desks, file cabinets and computers). Human Resources Development - maintains pertinent data on employees.
Keeps historical data such as educational background, salary history, performance reviews, skills and professional development.

Budgeting - provides information on past line-item expenditures (salaries, office equipment, office supplies).
Based on expenditures managers can make requests for the next fiscal year. The budget system matches the managers request against the projected revenues and generates an exception report for items that exceed project funding levels.

 Office Automation - computer based applications associated with general office works.
It may include productivity software such as word processing, desktop publishing, electronic spreadsheet, database and graphics presentation.

Electronic Mail - the capability to send and receive letters through the computer. Image Processing - involves creation, storage, and distribution of pictorial information.
Transfers images into hardcopies.

Voice Processing - it includes voice messaging and teleconferencing.

Voice messages are stored in a voice mailbox system, just like an electronic mail except no hard copies are developed. Your voice is digitized and stored on a magnetic disk for later retrieval. Teleconferencing enables people in different locations to talk to each other, share charts and other visual meeting materials. The voice and video teleconferencing are supported by a telephone network.

 Office Information Systems - addresses traditional office tasks.

Keeping track of a personal calendar on-line. Having a company directory

Industry-specific applications of IT
Manufacturing
Traditional Manufacturing Information System
Order Entry and Processing system - accepts and processes customer orders, then feeds data to a warehouse or plant. Production scheduling - allocate manufacturing resources in an optimal manner; minimizes idle time for both machines and workers. Market Analysis systems - rely on historical and current data to identify fast and slow moving products, to pinpoint areas with high sales potentials and make forecasts of production requirements and plan marketing strategies. Project management and control systems - provide management with information necessary to keep projects within the budget and on-time. Standard Costing

Robotics - the use of robots (industrial) and computers to perform task which are repetitive and require precision movements, moving heavy loads and working in hazardous areas.
Teaching robots to do their jobs Outfitting robots with intelligence and human sensory capabilities

 Computer-Integrated Manufacturing (CIM) - the integration of computers and manufacturing where the computer is used at every stage of the manufacturing process, from the time a part is conceived until it is shipped.
Computer systems are linked via data communications and they feed data to one another.

Computer-Aided Design (CAD) - a system to design a part then feed it to a computer system that generates programs to control the robots and machine tools that handle and make the part.

Financial Services
Includes banking, savings and loan institutions, and brokerage firms. The use of electronic fund transfer (EFT) The use of automatic-teller machines (ATMs)

Publishing
Word processing, computerized typesetting, computer-aided graphics design and page formatting are used in developing newspapers, magazines and books.

 Airlines
The use of airline reservation systems that reflects an up-to the minute status of passengers and their seats. An airline reservation agent communicates with a centralized computer via remote terminal to update the database the moment a seat on any flight is filled or becomes available. The system shall produce the following information: number of passenger, miles flown, profit per passenger on a particular flight, percent of arrivals on-time, average numbers of empty seats for each day of the week.

Insurance
An information system that makes more external interaction (customer). An information system that develops computer-based policy administration and claims processing, agents hook-up to computers at headquarters so they can quote, write and deliver policies while customers wait.

 Entertainment
The use of special effects and computer generated graphics. Animation for cartoons TV programs simulated in various locations Actors substituted by robots/computers for stunts
Hospitals - the status of every room is computerized as well as patient accounting system to reflect lab tests, drug administered and visits by a physician.
In operating rooms - surgeons have an on-line access to a patients medical records, some of which are voice activated Brain surgeries have computer monitors to see the patients blood flow to the brain. Intensive Care Units (ICUs) have computers to monitor vital signs and alert attending physicians. CT (computer tomography) or CAT scans MR (magnetic resonance) to see clearly a persons body. Medical Researches

Health Care

 Government
Local Government
Most local governments supply and bill for three major utility services water, refuse and electricity. Tax collection system Police systems Automated traffic-control system

State Government
Welfare, employment security, high way patrol, revenue and education. Lottery agency

Federal Government
National Crime Information System (NCIS) - help track down criminals Internal Revenue Service (IRS) - permits qualified accountants to file tax returns on-line, saves time and money. Senators and representatives have terminals in their offices to scan proposed legislation's, send email, vote on legislation, do research and correspond with constituents. NASA - considered the most sophisticated government system; computers on-board and on ground work together to shuttle people between the earth and orbit around the earth.

Information Resource Management

Treats information as a valuable resource that should be managed accordingly, just like money, materials and people. To meet the productivity challenge. Provide more and better information.

Information Systems
We combine hardware, software, people, procedures and data. A computer-based information system that provides a managers department with data processing capabilities and information to make decision making better and informed. Provides decision makers with on-demand reports and inquiry capabilities as well as routine periodic reports. Helps management make business decisions. Sometimes called Management Information System (MIS).

Decision Support System

User-friendly software that produces and presents information to help management in decision-making process. Involves the latest technological innovation (for example, color graphics and DBMS), planning and forecasting models and user oriented 4GLs. Helps close the information gap so managers can improve the quality of their decision. Remove the tedium of gathering, analyzing and presenting data. They can generate illustrative bars and pie graphs.

Expert System
The ultimate decision support system. Part of the general area of artificial intelligence. Provide expert advice and guidance for a wide range of activities, from locomotives maintenance to surgery. An interactive system that responds to questions, ask for clarifications, makes recommendations and generally helps in the decision-making process. The heart of an expert system is a knowledge base. Created by knowledge engineers, who translates the knowledge of a real live human experts into rules and strategies.