Commercial Data Processing Lesson 2: The Data Processing Cycle

Commercial Data Processing By the end of this lesson you will be aware of the terms:  The Data Processing Cycle  Direct Input Devices  Bar Codes  Mark Sense Card  MICR  Magnetic Stripe  Smart Card  OCR

Commercial Data Processing The Data Processing Cycle data collection & preparation data input data processing & storage output of data Data is collected from a source document, eg an order forms, cheques, application forms, lottery cards. Source document are design carefully so people don’t make mistakes. Data is entered into the computer for processing. CDP systems try to remove humans as much as possible from this process, rather they use a variety of input devices to directly input data. Data is processed, ie fed into the program and manipulated. There are 2 types of processing: interactive and batch. Data is then stored on some form of backing store. Processed data is either displayed on a monitor or printed onto paper or output to a file. Turnaround documents are often printed as output. These documents are output from one process that will be used later as input by another process. Data Processing Cycle

Commercial Data Processing Direct data input is when data is input using hardware rather than people this:  reduce human errors  speeds up the inputting of data, and  increase productivity ie increase how much one person can input per hour. Direct Data Input  DeviceSource DocumentHow It Works Bar Code Reader Bar Code Bar Code represent:  Country of origin  Manufacturer  Name of product  Size of product  Check Digit. 1.Scanner reads the bar code. 2.Bar code is validated (beeps if ok). 3.Bar code is used to search products database for price. Validation is the process of checking that the data is sensible and accurate. It does not guarantee the data is correct. The check digit of the bar code is used for validation. Mark Sense Card Reader Mark Sense Card 1.Mark sense cards have multiple choices. 2.Users fills the boxes to select their choices. 3.Shop keeper inserts the card into the reader. 4.The reader scans and recognises the lines and the pattern is processed.

Commercial Data Processing Direct Data Input  DeviceSource DocumentHow It Works Magnetic Stripe Reader Magnetic Stripe The stripe on the back of a card is a magnetic stripe and is programmed with owners details eg sort code, account number, start date and expiry date. 1.When the card is swiped through a magnetic stripe reader it reads the pattern of magnetism. 2.The data from the stripe is then passed to a computer. Magnetic Ink Character Reader Magnetic Ink Characters  Numbers are printed using a special magnetic ink.  The numbers are read by a special machine called a Magnetic Ink Character Reader (MICR).  MICR characters are printed on cheques and invoices.  MICR enables 300 cheques per minute to be read with 100% accuracy.

Commercial Data Processing Direct Data Input (Credit) DeviceSource Document How It Works Smart Card Reader Smart Card  Smart card is also known as chip and pin cards.  Smart cards have their own processor and memory.  Smart cards were introduced to improve the security transaction. The chip has enough memory of store biometric security.  Smart cards can also be used for various payment systems as an alternative to cash. Scanner with OCR software Hard copy of any document OCR stands for Optical Character Recognition. 1.Scanner scans text in a document into the computer. 2.OCR software extracts the text from the page 3.Text can be edited by a word processor. Accuracy of the recognition depends on how clear the writing is even some neat handwriting. OCR is used to automatically recognise postcodes on letters at sorting offices.

Commercial Data Processing Answer the following questions in your jotter. 1)List, in the correct order, the 4 stages of the data processing cycle. 2) Give 2 reasons why direct input devices are used. 3)Explain how bar codes are used to get the price. 4)Give an example of a mark sense card and explain how the data is input. 5)Give an example of MICR and explain how the data is input. 6)Give an example of Magnetic Stripe and explain how the data is input. Credit 1.Why do smart card help fight fraud? 2.Explain how OCR can help people who cannot type fast.

Commercial Data Processing Extension Read through this webpage for further information on this topic. Try some quizzes on this topic.

Commercial Data Processing