1. Standard Grade Commercial data Processing

2. What is CDP? Why use computers? How is the data processed? Commercial Data Processing Social Implications? Technical Implications? Economic Implications? Security?

3. Large companies use computer systems because of the huge number of documents they need to deal with to run the company. Repetitive tasks can be handled easily, accurately and at high speed. Commercial data processing needs large mainframe computer systems which can process data very quickly and give the user quick access to data. Users access the mainframe via terminals – monitor and keyboard. What is CDP?

4. An old Mainframe…

5. A modern Mainframe…

6. Managing CDP Systems allow those managing a business to get instant access to the essential information required for the smooth running of their company.

7. Data and Information… Data is a general term for numbers, characters and symbols which are input, processed and stored by the computer. When you know the meaning of data it becomes information. For example, take the number 12345 - this is data. However, if we know the meaning of it, 12345 becomes information. 12345 could be a price, a weight, a house number, an order number or a part number. This is then information.

8. The data processing cycle is the order that data is processed in. This cycle is made up of four stages. 1 Data collection and preparation 2 Data input 3 Data processing and storage 4 Data output Data collection and preparation Data input Data output Data processing and storage How is Data Processed?

9. The first stage in the data processing cycle is to collect and prepare data in a form that the computer can understand. Data can be collected in many different ways? If the data is written down or printed on a piece of paper, it is known as a source document. An order form for a catalogue is an example of a source document. Data Collection & Preparation

10. Data Input Mark Sense Cards Marks are made on cards which can be read by special card-reading equipment. This method is used for stock control, recording exam results and for the National Lottery Entry forms. The following forms of Data Input are knows as Direct Data Entry, as the data is input directly into the system from the device.

11. Bar codes - A light pen or bar code reader is passed over the lines and data is directly input to the computer. Bar codes are made up of 30 lines that give a unique 13-digit code number to each product. Bar codes do not hold the price, but instead holds information such as the company who made the product, the country of origin etc. The item code is sent to the mainframe computer which finds the price of the article and then reduces the number in stock by one. Data Input (cont.)

12. Magnetic Stripes - Are magnetic bands of magnetic material on which data is held. Used on cheque and credit cards to allow card details to be input automatically. The strip holds 64 characters of data (such as sort codes and account numbers). Data Input (cont.)

13. Character Recognition Characters can be input by typing them on a keyboard but it would be much quicker if the Computer could read written or printed characters. There are two ways this can be done? Data Input (cont.) MICR – Magnetic Ink Character Recognition Magnetic Ink Characters are used on cheques for automatic reading of account details. A Magnetic Ink character reader is used to read the data into the computer system.

14. OCR – Optical Character Recognition A device called an optical character reader is able to recognise numbers and letters and read them directly into a computer. Used to read to data from forms that a person fills out. The letters have to be carefully written for the machine to read them. Data Input (cont.)

15. Smart Cards New style Credit and Debit cards have a microchip and on-board memory. More data can be held on the chip, and they are harder to fake compared to magnetic stripes. Data Input (cont.)

16. The process of ensuring data is correct and accurate involves Data Validation and Verification Data Verification:- Checks whether the data being entered is correct. An example is a system asking a user “Is this correct? Y/N”. 1. Check Digits: - Used to check numbers. It is an extra digit added to the end of a number. When the number is entered, the computer calculates the check digit. If it does not match the one entered an error message is displayed. e.g. Code number = 13457 Total of all the digits = 20 Check digit = 20/5 = 4 Number to be entered into computer = 134574 Error Checking Data Validation:- Checks that the entry of data is correct. If it passes the check, it is valid, but might not be true. An example would be a Male/Female box on a website. Checking The Data – Data Validation Techniques

17. 3. Range Check : - Checks that a number is within a certain range. e.g. Month number field must be between 1 and 12. 4. Field Type Check : - Checks that the correct data type has been entered. e.g. Makes sure that only numbers can be entered as a PIN number etc. 5. Presence Check : - Checks that essential information has been entered. e.g. Account Numbers, e-Mail address etc. 6. Double Entry System : - One way to reduce human error whilst entering data is to have two operators enter the data. If there are any differences, the system will ask for the data to be re-entered. Error Checking (cont.) 2. Field Length Check: - If the entry has more characters than will fit into a field then an error message is displayed. e.g. A PIN must have only 4 digits.

18. Updating data: - Adding new data to data that is already stored. Data held on a bank computer system is constantly changing as customers withdraw and deposit money for example. Backing up data: - A backup is a second copy of a file, made each time the data is updated. Companies can lose a lot of money if data is lost so backup is critical to CDP. Data Processing Interactive System: - In an Interactive System, the computer reacts to the users request and processes the necessary data. An example of this is booking a holiday at a Travel Agent, or booking Cinema Tickets.

19. Multi-user Database: A multi-user database is one that allows many users to access a single database at the same time. Large companies have their databases accessible by all of their employees over a large network. Companies like Amazon take orders using a multi-user database on the internet. Data Processing (cont.)

20. Storing data: - Data is stored in a database, where it is stored as files, records and fields. Each file contains a record for each item (or transaction). Each record contains a number of fields. Data Storage Class John Dixon Name Field Address Field Jean BrownJim Alexander Name Field Address Field Name Field Address Field File Record Fields

21. File Access Methods Sequential Access Used to store data on tape systems i.e. the data is stored one item after the other. This is very time-consuming as each item has to be read in the order it was stored. An example is magnetic tape. Random (Direct) Access The data is written in no prescribed order and can be read in any order. This is typical of disc storage systems and is used where constant changes are made to the data. Data Storage (cont.)

22. Printout: Receipts can be printed out. Output of Data On-screen Display: Orders can be displayed on-screen on a monitor or screen. Save to File: Data can also be output to a file where it can be saved or archived. Data Output

23. Hardware We already know that companies use large, powerful computers called mainframes. Mainframes process all of the data and transactions. They also use hardware called terminals which are connected to the mainframe and (normally) consist of a monitor and keyboard. They have no processing power or backing storage.

24. Once data is entered into a CDP system, it is stored centrally. This means that: It can be used over and over again without being re- entered, Many people can then access the information. This is called single entry multiple use. An example of this would be holiday bookings: A file describing a holiday with lots of information and pictures can be set up by a single person. It can then be viewed by many people wishing to book a holiday. Single Entry Multiple Use

25. Computers make companies more efficient and increase profits. Orders can be processed faster than manual systems. Large numbers of customers can be contacted with bulk mailings. Enquiries can be dealt with quickly as all the information is displayed on the screen. CDP enhances service that keeps customers satisfied and can generate repeat business. Social Implications - Business

26. The widespread use of computers has led to an increase in many new job roles: Systems Analyst Programmers Engineers Network Manager Social Implications - Business

27. Looks at the manual tasks carried out in a company and decides if these can be carried out by a computer instead. Systems Analyst Duties include: oDeciding on the software and hardware required for a particular company. oSpecify in detail the input, processing and output required. oWrites a report which details the cost of installing and maintaining a computer system.

28. The Systems Analyst works with the programmers and gives them a “flow diagram”. Programmers write the code for the programs according to the systems flow diagram. They also write documentation that explains how the program works. Programmer

29. The main duties of the engineer are: oInstalling computer system. oProvides maintenance for computer systems. oRepairs computer systems. Engineer

30. The Network Manager is responsible for the day-to-day running of the computer network. They decide each user’s level of access to the system and issue user id’s and passwords to gain access to the system. Network Manager

31. Fake Websites Identity Theft Credit Card Cloning Premium Line Rerouting Hacking & Viruses Computer Crime and Fraud

32. There is no forensic evidence. Crimes are often carried out from countries that have poor control over the internet which makes criminals hard to trace. Crimes may not be noticed for several months. Computer Criminals

33. E-commerce is the ability to buy and sell goods electronically, companies, such as e-bay allow you to buy and sell goods. E-Commerce

34. Online shopping allows you to buy goods electronically using a Credit or Debit Card and have the goods delivered to your home – like Tesco. The customer does not need to leave their home! The store can be run from a small premises by one person. This saves money i.e. no staff to pay or huge rent etc! Online Shopping

35. Online banking allows clients to check their bank statements, pay bills, transfer money from one account to another and arrange loans. Online Banking

36. Electronic Funds Transfer allows bills to be paid, or products to be paid for by computer without any money physically changing hands. Electronic Funds Transfer

37. Point of Sale (POS) terminals are shop ‘check-outs’ which are connected directly to the shop’s mainframe computer and also to a Bank’s secure network. Point Of Sale (POS)

38. EFT at POS works by the customer entering their PIN. The shops mainframe computer contacts the bank to check there is enough money in the customer’s bank account. Once this is verified the cost of the goods is deducted from the customer’s bank account and added to the shop’s. Each of the goods bought is deducted from the shop’s stock file. The customer and shop do not need to carry large sums of money around! The money transfers between accounts. The shop does not need to go to the bank to deposit the money into their account. Electronic Funds Transfer at Point Of Sale

39. Have to buy the hardware. Have to buy the software. Lease a very fast internet connection. Employ web designers. Employ engineers. Employ network managers. Employ systems analysts. Employ programmers. Deliver the goods. What Do Companies Need?

40. Hardware maintenance. Paying for consumables (printer ink, toner, paper, magnetic tapes for backups). Lease the internet connection. Paying the staff. Upgrading hardware and software as technology improves. Delivering goods to customers. E-Commerce Running Costs

41. E-commerce gives companies access to the mass market. Businesses can be run by one person and set up from home. Advantages of E-Commerce

42. Accuracy of information Companies make sure their information is kept up to date and accurate – especially customers details. This is covered in the Data Protection Act. Privacy Companies make sure their information is kept private – again, especially customers details. Physical Security Identity cards or keys to allow access to computer rooms, Locks on terminals, Backup copies of data. Security & Privacy

43. Software Security Use of usernames and passwords, Multi-level access, where some data can only be accessed by some staff members, Encryption of sensitive data, Audit software to keep track of all changes. Sale of Customer Lists Often, companies will sell lists of their customer details to other companies. These companies could then send junk email to the customer. Make sure to tick the box that says “I do not want my details passed on to other companies.” Security & Privacy (cont.)

44. The Data Protection Act The Data Protection Act has six main points. Users must: 1.obtain and process the information fairly and lawfully 2.register the purposes for which they hold it 3.not keep information longer than necessary 4.hold only accurate and up to date information 5.give individuals access to information about themselves 6.take appropriate security measures The Computer Misuse Act This act makes it a crime to spread viruses and hack into other people's computers and mailboxes. Copyright, Designs and Patents Act With the increasing use of computers, material can be copied very easily. E.g. downloading music from the internet = copyright infringement. Legal Aspects of CDP