Lesson 3

 Use of computers in recording, classifying, manipulating, and summarizing data.  Also called Automatic data processing, data processing, or information processing.

2 – 1 Areas of Data Processing 1. Business Data Processing 2. Scientific Data Processing 2 – 2 Data Processing Operations 1. Recording 2. Verifying 3. Duplicating 4. Classifying 5. Calculating

6. Calculating 7. Summarizing and Reporting 8. Merging 9. Storing 10. Retrieving 11. Feedback

2-3 EDP Organizational Chart 2-4 Applications of EDP 2-5 Methods of Processing Data 1. Batch Processing 2. On-line Processing 3. Real-time Processing 4. Distributed Processing 2-6 Advantages and Disadvantages of EDP

1. Business Data Processing ( BDP)  It is characterized by the need to establish, retain, and process files of data for producing useful information.  It involves a large volume of input data,limited arithmetical operations and relative large volume of output.

2. Scientific Data Processing ( SDP) 2. In science, data processing involves a limited volume of input and many logical or arithmetic calculations.

1. Recording – refers to the transfer of data unto some form or document. It relates to the documentation of intermediate figures and facts resulting from calculations 2. Verifying – the checking of any possible errors in the recorded data.

3. Duplicating – reproducing the data unto many forms of documents. 4. Classifying – identifying and arranging items with like characteristics into groups or classes. 5. Sorting – arranging data in a specific order 6. Calculating – the arithmetic manipulation of data. 7. Summarizing and Reporting  Summarizing – reducing masses of data to a more usable form.

8. Merging – this operation takes two or more sets of data and puts them together to form a single sorted set of data. 9. Storing – placing similar data into files for future reference. 10. Retrieving – recovering stored data and / or information when needed. 11. Feedback – is the comparison of the output and the goal set in advance; any discrepancy is analyzed, corrected and fed back to the proper stage in the processing operation.

 Data consists of all sorts of facts in the form of figures, numbers, letters or words  Information is the processed data, which is meaningful and useful.  Processing is done by computer and programs.

 Payroll System  A system that calculates wages and produces payroll sheets for employees.  Mailing List System  A system that stores data and uses them to produce mailing lists and mailing labels.  Ticketing System  allows a motorist to pay a toll rate based on the number of miles traveled from their origin to their destination exit.  Point-of-Sale System  A system that transactions are entered at the point where sales take place and also updates sales and inventory data

 Electronic funds transfer system  A system that allows electronic transfer of money from one account to another.

1. Batch Processing – is a technique in which data to be processed or program to be executed are collected into groups to permit convenient, efficient and serial processing. 2. On-line Processing - in one which uses devices directly connected to the CPU either for data entry or inquiry purposes.

3. Real-time processing is a method of data processing which has the capability of a fast response to obtain data from an activity or a physical process, performs computations and return a response rapidly enough to affect the outcome of the activity or process. 4. Distributed Processing is the most complex level of computer processing which generally consists of remote terminals linked to a large central computer system to help the user conduct inquiries about accounts, process jobs or other data processing operations

 Advantages  High Speed  Accurate  High Storage capacity  Automatic  Reliable  24 hour service  Remote access control  Disadvantages  Equipment is expensive  Much money required to design special computer system  Important data will be lost if computer breaks down