commercial data processing using computers in business unit 1

Commercial Data Commercial Data ProcessingProcessing

Using Computers In BusinessUsing Computers In Business

Unit 1

What is Commercial Data What is Commercial Data ProcessingProcessing

• Commercial data processing looks at Commercial data processing looks at how large organisations and companies how large organisations and companies handle large amounts of information.handle large amounts of information.

• The manual methods of the past have The manual methods of the past have been replaced by computer systems.been replaced by computer systems.

• In large organisations the large scale In large organisations the large scale data processing is often carried out on data processing is often carried out on mainframe computers.mainframe computers.

Unit 1

Who Uses Commercial Data Who Uses Commercial Data Processing?Processing?

Examples of organisations that use CDPExamples of organisations that use CDP

• Gas and Electricity Companies

• Supermarket Chains• Airline Companies• Health Boards• Local Councils (Perth &

Kinross)• Banks & Building Societies• Mail Order Companies

Unit 1

Why have companies invested in Why have companies invested in CDP?CDP?

•Cut down on the volume of paper produced

•Manual methods cannot cope with volume of paper work produced

•Mail order companies

•DVLC

•Banks

Unit 1


2.2. Speed of ProcessingSpeed of Processing

• Stock Control

• Airline Reservations

Unit 1


3.3. Speed of Speed of AccessAccess

• BT Directory Enquiries

• Banks

Unit 1


4.4. Repetitive Repetitive TasksTasks

• Wage Processing

• Gas Bills

Unit 1


Unit 2 Unit 2

The Data Processing CycleThe Data Processing Cycle

Unit 2


• Step 1: Collecting the dataStep 1: Collecting the data

• Step 2:Step 2: Entering the data into the systemEntering the data into the system

• Step 3:Step 3: Processing and storage of the dataProcessing and storage of the data

• Step 4Step 4 Output of the processed dataOutput of the processed data

Unit 2

Data CollectionPreparation

InputOutput

Process

Storage

Unit 2


Collection

Time sheetsPreparation

Keyed on to disc

Input

Prepared data input to program

OutputPrint wage slips

Process

Calculate employee wages

Storage

Update employee data

Unit 2

Wage Processing ExampleWage Processing Example


Unit 3Unit 3

Data Collection, Preparation & Data Collection, Preparation & InputInput

Unit 3

Data Entry : Paper BasedData Entry : Paper Based

• time sheet time sheet

• meter reading cardmeter reading card

Unit 3

Magnetic Stripe CardsMagnetic Stripe Cards

Optical Character Optical Character RecognitionRecognition

Magnetic Ink CharactersMagnetic Ink Characters

Unit 3

Bar CodesBar Codes

Data Entry : Machine Data Entry : Machine ReadableReadable

Data Entry : Machine Data Entry : Machine ReadableReadable

Mark Sense DocumentsMark Sense Documents

Smart CardsSmart Cards

Unit 3

• Auto teller machinesAuto teller machines

• Point of sale terminalPoint of sale terminal

• Travel agentsTravel agents

Unit 3

Direct Data EntryDirect Data Entry

Garbage In Garbage OutGarbage In Garbage Out

As data is entered it must be checked to ensure that it is free from errors and of the correct type

Range checksRange checks To ensure that any number not in the correct range will be rejected

Length checksLength checks To ensure that the correct number of digits or characters are entered

Presence checksPresence checks To ensure that an important item of data has not been completely missed out.

Unit 3

ValidationValidation

Unit 3

Check DigitsCheck Digits

• A check digit is an extra digit that is A check digit is an extra digit that is calculated from the other digits in the number calculated from the other digits in the number and then added to the end of the code and then added to the end of the code number.number.

• The computer recalculates the check digit The computer recalculates the check digit when the number is entered and compares when the number is entered and compares the result of this calculation to the check digit the result of this calculation to the check digit at the end of the number. at the end of the number.

• This makes sure that the number has been This makes sure that the number has been entered correctly.entered correctly.

Unit 3

Check DigitsCheck Digits

Check digits are used inCheck digits are used in

•Bank account numbers

•Product codes (bar codes)

•Mail order code numbers

•Employee payroll number

•Book codes (ISBN)

Unit 3

The number is now:The number is now:

0‑25‑132451- 60‑25‑132451- 6

• 0‑25‑132451‑□ 0‑25‑132451‑□

• 0 x 10 =0 x 10 = 00

• 2 x 9 = 2 x 9 = 1818

• 5 x 8 =5 x 8 = 4040

• 1 x 7 =1 x 7 = 7 7

• 3 x 6 =3 x 6 = 1818

• 2 x 5 =2 x 5 = 1010

• 4 x 4 =4 x 4 = 1616

• 5 x 3 =5 x 3 = 1515

• 1 x 2 =1 x 2 = 2 2

• 126126

• 126 / 11 = 11 126 / 11 = 11 remainder 5remainder 5

• 11 – 5 = 611 – 5 = 6• Check digit is 6Check digit is 6

Calculating a Check Digit ISBN-Calculating a Check Digit ISBN-1010


Unit 4Unit 4

Processing And StorageProcessing And Storage

Unit 4

Unit 4

MainframesMainframes

The largest of all computer systems. The largest of all computer systems.

Usually installed in large purpose-built rooms.Usually installed in large purpose-built rooms.

The mainframe will consist ofThe mainframe will consist of

• Several ProcessorsSeveral Processors

• Many Hard Disc unitsMany Hard Disc units

• Magnetic Tape units Magnetic Tape units

• Several PrintersSeveral Printers

• Many TerminalsMany Terminals

Unit 4

MainframesMainframes

• Mainframes have many terminals connected to them.

• Terminals do not do any processing.

• The data is sent to the mainframe for processing.

• Mainframes can have many terminals at the same time.

• Users can work on many different types of software.

• Terminals can connect from many miles away.

• Remote terminals connect using the telephone system.

Superstore Computer Superstore Computer NetworkNetwork

Head office responsible for:

•Ordering goods from supplier

•Distributing goods to stores

•Calculating sales figures

Unit 4

Superstore Wide Area Superstore Wide Area NetworkNetwork

Head Office has a mainframe computerThe mainframe

computer is connected to each stores mini computer by W.A.N.

Unit 4

Each store has a mini computer to run the L.A.N.

The Local Area Network is connected to each P.O.S. terminal

Unit 4 Stores have a Local Area Stores have a Local Area NetworkNetwork

Data FilesData Files

Record 5Record 5Item: Item: BeansBeans

Size: Size: 250gms250gms

Manufacturer: Manufacturer: HeinzHeinz

Stock: Stock: 250250

Min stock level: Min stock level: 100100

Price: Price: 0.430.43



















Record 1Record 1Item: Item: Can of CokeCan of Coke


Manufacturer: Manufacturer: Coca ColaCoca Cola

Stock level: Stock level: 238238



Unit 4

Contain a Contain a Record for Record for each stock each stock itemitem







Unit 4 Keeping data files up to Keeping data files up to datedate

•Create new records

•Update records

•Delete old records

Unit 4

Keeping data files safeKeeping data files safe

•Always make backup copies files

•Store the files safely in a place which is:– Fire proof– Bomb proof– Water proof– Radiation proof

Unit 4

•Each transaction is processed Immediately – as it is entered

•The file is always up to dateExamples

•Booking of a holiday at a travel agent

•Mail ordering of goods by phone

Interactive ProcessingInteractive Processing

Unit 4

Storing data on backing storage can use two methods.

Direct access• This is the form of access that we are familiar, when the

computer goes straight (direct) to the data required. This form of access is very fast and is used on disc based system (floppy, hard disc, CD Rom etc.)

Sequential access• This is a slower form of access that is usually associated

with a tape based system. In sequential access the all the data is read until the required data is found. Clearly this form of access is not suitable for most types of processing

Sequential and Direct Sequential and Direct AccessAccess

Unit 4

Multi User DatabaseMulti User Database

• A multi user database is one in which many people can access the database at the same time

• Auto teller machines • allow many customers, throughout the country, to

access their accounts to withdraw money etc.• Booking systems • holiday companies allow travel agents,

throughout the country, to access information from the database of holidays

• can also be used for theatres, football matches etc

Commercial DataCommercial Data ProcessingProcessing

Unit 5Unit 5

OutputOutput

Unit 5

Unit 5

OutputOutput

•There are many forms of OUTPUT created in a large CDP situation

•Output can be sent to

•Monitor Screens

•Printers

•Backing storage to be stored on file


Unit 6Unit 6

How are people affected?How are people affected?

Unit 6

Unit 6 Advantages of CDP for Advantages of CDP for BusinessesBusinesses

Computers can do the following better than a person. They can

•process much more data

•search and access data faster

•process data more accurately

•process the data faster

•work continuously without a break

Unit 6 Disadvantages of CDP for Disadvantages of CDP for StaffStaff• The number of jobs may be reduced

– Shop assistants no longer need to price items– Bank cash dispensers mean fewer bank

tellers• Fewer skilled jobs will be available

– Computers do jobs done by skilled staff • Training will be required

– Staff need training to use computer systems– Most staff will use computers at some stage

• Work patterns may have to change– Computers work continuously – staff needed to service them– People may now need to work shifts

Unit 6

Advantages of CDP for StaffAdvantages of CDP for Staff

• New jobs have been created– Computer engineers needed– data preparation staff needed

• Training means new skills which may result in higher pay– Higher skilled staff should be paid more– typists replaced by office admin staff

• Customers will get a better service– Customers get a faster service – Customers get a more accurate service– Customers get a service with more facilities – Customers get 24 hour banking

New Data Processing JobsNew Data Processing Jobs

Data processing manager

Chief Programmer

Chief SystemAnalyst

Network ManagerChief

Engineer

ProgrammersSystem

Analysts Engineers

Unit 6


Unit 7Unit 7

Electronic Fund TransferElectronic Fund Transfer

Unit 7

• By cash

• By cheque

• By credit card

• By electronic fund transfer (EFT)

Unit 7

Ways to Pay for GoodsWays to Pay for Goods

• Shopper hands over EFT card to assistant at POS

• Assistant places EFT card into the card reader

• POS terminal contacts shopper’s bank computer

• Computer checks to see if shopper has enough money

• Message is sent back to say sale can proceed

• Customer enters PIN number into card reader

• Money is transmitted to shops bank account

• Shops account is credited with amount of the sale

• Customer’s account is debited by amount of the sale

Unit 7

Steps involved in EFTSteps involved in EFT

Unit 7

Advantages of using EFTAdvantages of using EFT

• Expensive cheque processing not needed

• Customer does not need to carry cash

• Shop and Bank do not need to count cash

• Shop gets money straight away

Unit 7

Disadvantages of using EFTDisadvantages of using EFT

•Customers must believe in the reliability and security of the system

•Customers must have bank accounts

• If card is stolen – fraud can take place

•Sales are completely reliant on the computer system working

Unit 7

Electronic BankingElectronic Banking

• Many bank customers now do all their bank transactions electronically. This is done using the Internet.

• Once logged on to their account the bank’s customer can pay bills transfer money etc. all from the comfort of their home.

• Clearly security is a big issue with this form of banking, and passwords are used at various stages in the system.

How an ATM WorksHow an ATM Works

commercial data processing using computers in business unit 1

Documents

data processing cycle

data processing cycle

processed data unit

data processing cycle

large scale data processing

direct data entry slide

processed data step

agents unit