Commercial Data Processing

Introduction

What is CDP

• Commercial Data Processing is the use of powerful computer systems to collect and process large volumes of data at high speed.

Reasons for CDP Systems

They:• Process large volumes of data• Process data at high speeds

– Ability to search through a large number of records quickly

• Have the ability to do repetitive tasks without errors

• Process the data fast• Ensure very accurate data

Management Information

• CDP provides the managers of companies with information that can them with decisions:

• Ordering Stock

• Sales

• Pricing Decisions

Advantages Over a Manual System

• Orders can be processed much more quickly

• Errors are less likely because of the checks built into the computer system

• Direct mailings can be done automatically using a mail merge

• Maintaining contact with & information about a large number customers

An ExampleGlasgow Airport

• They process lots of data– The BA computer system processes

thousands of pieces of data every second

• They handle repetitive tasks easily– At peak periods the BA computer systems

check in thousands of passengers each day, repeating the same process over and over again

• They process data at high speeds– Bags are checked in immediately the

bar code is entered

• They ensure very accurate data– Aircraft positions an times are accurately

recorded by the computer system

• They offer instant access to the data– Many authorised staff members in the airport

can see the data instantly. The data on arrivals and departures is displayed to the public on large display screens

• The computer system makes it possible for:– The airport to cope with the thousands of

people who travel on the planes – The movement of the planes– All the needs of the planes such as food and

fuel– Dozens of airlines to use the airport

Lesson Objectives

• Learn about:

– Difference between data and

Information

– The Data Processing Cycle

– Data Collection and Preparation

Stage

– Data Input Stage

Recap – Reasons for CDP

They:• Process large volumes of data• Process data at high speeds

– Ability to search through a large number of records quickly

• Have the ability to do repetitive tasks without errors

• Process the data fast• Ensure very accurate data

Data Vs InformationData is a collection of numbers, characters and symbols that a computer can use. It is meaningless to humans unless an explanation is given

Information is data that is in a form that means something to humans.

e.g. 19.01.06

e.g. 190106

What is it?

A date

The Data Processing Cycle

Data Collection & Preparation

Data Input

Data Processing & Storage

Data Output

The Data Processing Cycle

The 4 Stages:

• Data Collection and Preparation

• Data Input

• Data Processing and Storage

• Data Output

Data Collection & Preparation

• The first stage in the data processing cycle is to collect and prepare the data so that the computer can understand it.

• Data can be collected in a variety of different ways for example:

• Scanning shopping at a supermarket checkout

• Clocking on at work• Filling in a form

– Source document

The Data Processing Cycle

Data Collection & Preparation

Data Input

Data Input

• Magnetic stripes

• Smartcards

• Bar Codes

• Mark Sense Cards

• Magnetic Ink character recognition (MICR)

• Optical Character Recognition (OCR)

Data Input:Magnetic stripes

• Stripe of magnetic material on the back of cards such as bank cards.

• Information is held on the magnetic stripe.

• Simple, quick and accurate way to enter account details.

• Relatively easy to forge• To counter this forgery the

smartcard was developed…

Data Input:Smartcards (Chip&Pin)

• Have a microchip & on-board memory instead of using the magnetic stripe to hold the information

• Holds a lot more data and harder to forge than magnetic stripes

Data Input:Bar Codes

• A set of lines varying in widths that represent a number

• They are read by passing a light pen or bar code reader across them.

• Contain information about the product such as: Item code, manufacturer, country of origin, size, etc.

Data Input:Mark Sense Cards

• Sheet that contains boxes that a line is marked for a choice.

• Good for multiple choice options like the National Lottery

Data Input: Magnetic Ink Character Recognition (MICR)

• Uses magnetic ink to print information on cheques

• Harder to forge than using normal ink

• Learn about:

– Error Checking

– Interactive Processing

– Backup & Updating

– Files, Records & Fields

– Data Output

Lesson Objectives

Recap – Reasons for CDP

• Process large volumes of data

• Process data at high speeds

• Repetitive tasks without errors

• Process the data fast

• Ensure very accurate data

Recap – Data Input

• Magnetic stripes

• Smartcards

• Bar Codes

• Mark Sense Cards

• MICR

Data Input:Optical Character Recognition (OCR)

• Optical Character Reader recognises letters and characters.

• With special software a scanner can do OCR

• Widely used by the Post Office to sort mail.

Error Checking

Ensuring the data entered is correctTypes:

–Validation• Check Digit• Range check• Length check

–Verification• Enter it twice

The Data Processing Cycle

Data Collection & Preparation

Data Input

Data Processing & Storage

• File– Organised collection of related data

• Record– A group of related data items that could

be considered as one unit

• Fields– One bit of information within a record

Data Processing & Storage

• Interactive Processing– Computer system process the data

immediately it is entered– The results are then fed back to the users

immediately

• Updating– When a file is changed then it is updated

• Backup– At least one spare copy of the data should be

kept

The Data Processing Cycle

Data Collection & Preparation

Data Input

Data Processing & Storage

Data Output

Data Output

• Paper– Bills– Statements– Tickets

• Screen– Online bills– Information screens

The Data Processing Cycle

Data Collection & Preparation

Data Input

Data Processing & Storage

Data Output

• Learn about:

– E-Commerce

– EFT / EPOS

– Job Types

– Economic Implications

– Security & Privacy

Lesson Objectives

E-Commerce

• Using networks to buy and sell products & services

• Shopping online– EBay, Amazon, Tesco, etc

• Online banking– Allows you to keep track of accounts

EFT/EPOS

• Electronic Funds Transfer (EFT)– A way of paying for goods without using cash– The amount of money is transferred directly

from your bank to the shop’s bank account

• Electronic Point of Sale (EPOS)– Computerised system that collects data from

checkout

EFTPOS

• Advantages– Less cash so less chance for theft

• Better for both customer & business

– Less paperwork

• Disadvantages– Expensive to install– Easy to overspend when not using cash

Effects on Business

New jobs are have been created since computers became used for CDP that didn’t exist before.

Job Types & Careers

Programmer

Systems Analyst

Engineer

Network Manager

Computer Operator

Systems Analyst

Looks at the manual tasks carried out by a company and decides whether these would be better or even possible by using computers instead.

Programmer• When the System Analyst is finished they

consult with the Programmer to discussed requirements

• The Programmer then writes the code for the programs required.

Engineer / Technician

• The person responsible for the maintenance and repairs of all the equipment.

Network Manager

• Controls who has access to network

• Controls installation of software & hardware

Computer Operator

• This person is involved with the day to day running of the complete computer system.

• They run the programs that process the data previously input.

Economic Implications

• Initial Cost– Buying & setting up the system is

expensive

• Running Cost– Paper, – ink, – Electricity, – Maintenance

Security & Privacy

• Information must be accurate & up to date

• Files must be kept private

• Sale of mailing lists– Companies can sell the customer details to

other companies– The person must be told and must give

permission for their information to be passed on.

Task

• Answer questions pg 193 of book– Foundation KU

– Foundation PS

– General KU

– General PS - 4-11

• Learn about:

– E-Commerce

– EFT / EPOS

– Job Types

– Economic Implications

– Security & Privacy

Lesson Objectives