1. Commercial Data Processing
Unit 1
Commercial Data Processing
Using Computers In Business

2. What is Commercial Data Processing
Unit 1
What is Commercial Data Processing
Commercial data processing looks at how large organisations and companies handle large amounts of information.
The manual methods of the past have been replaced by computer systems.
In large organisations the large scale data processing is often carried out on mainframe computers.

3. Who Uses Commercial Data Processing?
Unit 1
Who Uses Commercial Data Processing?
Examples 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

4. Why have companies invested in CDP?
Unit 1
Why have companies invested in CDP?
Cut down on the volume of paper produced
Manual methods cannot cope with volume of paper work produced
Mail order companies
DVLC
Banks

5. Why have companies invested in CDP?
Unit 1
Why have companies invested in CDP?
Speed of Processing
Stock Control
Airline Reservations

6. Why have companies invested in CDP?
Unit 1
Why have companies invested in CDP?
Speed of Access
BT Directory Enquiries
Banks

7. Why have companies invested in CDP?
Unit 1
Why have companies invested in CDP?
Repetitive Tasks
Wage Processing
Gas Bills

8. The Data Processing Cycle
Unit 2
Commercial Data Processing
Unit 2
The Data Processing Cycle

9. The Data Processing Cycle
Unit 2
The Data Processing Cycle
Step 1: Collecting the data
Step 2: Entering the data into the system
Step 3: Processing and storage of the data
Step 4 Output of the processed data

10. The Data Processing Cycle
Unit 2
The Data Processing Cycle
Data Collection
Preparation
Input
Output
Process
Storage

11. Wage Processing Example
Unit 2
Wage Processing Example
Collection
Time sheets
Preparation
Keyed on to disc
Input
Prepared data input to program
Output
Print wage slips
Process
Calculate employee wages
Storage
Update employee data

12. Commercial Data Processing
Unit 3
Commercial Data Processing
Unit 3
Data Collection, Preparation & Input

13. Data Entry : Paper Based
Unit 3
Data Entry : Paper Based
time sheet
meter reading card

14. Data Entry : Machine Readable
Unit 3
Data Entry : Machine Readable
Magnetic Stripe Cards
Bar Codes
Magnetic Ink Characters
Optical Character Recognition

15. Data Entry : Machine Readable
Unit 3
Data Entry : Machine Readable
Mark Sense Documents
Smart Cards

16. Direct Data Entry Auto teller machines Point of sale terminal
Unit 3
Direct Data Entry
Auto teller machines
Point of sale terminal
Travel agents

17. Validation Garbage In Garbage Out
Unit 3
Validation
Garbage 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 checks To ensure that any number not in the correct range will be rejected
Length checks To ensure that the correct number of digits or characters are entered
Presence checks To ensure that an important item of data has not been completely missed out.

18. Unit 3
Check Digits
A check digit is an extra digit that is calculated from the other digits in the number and then added to the end of the code number.
The computer recalculates the check digit when the number is entered and compares the result of this calculation to the check digit at the end of the number.
This makes sure that the number has been entered correctly.

19. Check Digits Check digits are used in Bank account numbers
Unit 3
Check Digits
Check digits are used in
Bank account numbers
Product codes (bar codes)
Mail order code numbers
Employee payroll number
Book codes (ISBN)

20. Calculating a Check Digit ISBN-10
Unit 3
Calculating a Check Digit ISBN-10
0‑25‑132451‑□
0 x 10 = 0
2 x 9 = 18
5 x 8 = 40
1 x 7 = 7
3 x 6 = 18
2 x 5 = 10
4 x 4 = 16
5 x 3 = 15
1 x 2 = 2
126
126 / 11 = 11 remainder 5
11 – 5 = 6
Check digit is 6
The number is now:
0‑25‑

21. Commercial Data Processing
Unit 4
Commercial Data Processing
Unit 4
Processing And Storage

22. Mainframes The largest of all computer systems.
Unit 4
Mainframes
The largest of all computer systems.
Usually installed in large purpose-built rooms.
The mainframe will consist of
Several Processors
Many Hard Disc units
Magnetic Tape units
Several Printers
Many Terminals

23. Mainframes Mainframes have many terminals connected to them.
Unit 4
Mainframes
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.

24. Superstore Computer Network
Unit 4
Superstore Computer Network
Head office responsible for:
Ordering goods from supplier
Distributing goods to stores
Calculating sales figures

25. Superstore Wide Area Network
Unit 4
Superstore Wide Area Network
Head Office has a mainframe computer
The mainframe computer is connected to each stores mini computer by W.A.N.

26. Stores have a Local Area Network
Unit 4
Stores have a Local Area Network
Each store has a mini computer to run the L.A.N.
The Local Area Network is connected to each P.O.S. terminal

27. Data Files Record 5 Record 4 Record 3 Record 2 Record 1
Unit 4
Data Files
Record 5
Item: Beans
Size: 250gms
Manufacturer: Heinz
Stock: 250
Min stock level: 100
Price: 0.43
Record 4
Record 3
Record 2
Record 1
Item: Can of Coke
Manufacturer: Coca Cola
Stock level: 238
Price: 0.37
Contain a Record for each stock item

28. Keeping data files up to date
Unit 4
Keeping data files up to date
Create new records
Update records
Delete old records
Record 5
Item: Beans
Size: 250gms
Manufacturer: Heinz
Stock: 250
Min stock level: 100
Price: 0.43

29. Keeping data files safe
Unit 4
Keeping 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

30. Interactive Processing
Unit 4
Interactive Processing
Each transaction is processed Immediately – as it is entered
The file is always up to date
Examples
Booking of a holiday at a travel agent
Mail ordering of goods by phone

31. Sequential and Direct Access
Unit 4
Sequential and Direct Access
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

32. Unit 4
Multi 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

33. Commercial Data Processing
Unit 5
Commercial Data Processing
Unit 5
Output

34. Output There are many forms of OUTPUT created in a large CDP situation
Unit 5
Output
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

35. Commercial Data Processing
Unit 6
Commercial Data Processing
Unit 6
How are people affected?

36. Advantages of CDP for Businesses
Unit 6
Advantages of CDP for Businesses
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

37. Disadvantages of CDP for Staff
Unit 6
Disadvantages of CDP for Staff
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

38. Advantages of CDP for Staff
Unit 6
Advantages 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

39. New Data Processing Jobs
Unit 6
New Data Processing Jobs

40. Commercial Data Processing
Unit 7
Commercial Data Processing
Unit 7
Electronic Fund Transfer

41. Ways to Pay for Goods By cash By cheque By credit card
Unit 7
Ways to Pay for Goods
By cash
By cheque
By credit card
By electronic fund transfer (EFT)

42. Steps involved in EFT Shopper hands over EFT card to assistant at POS
Unit 7
Steps involved in EFT
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

43. Advantages of using EFT
Unit 7
Advantages 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

44. Disadvantages of using EFT
Unit 7
Disadvantages 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

45. Unit 7
Electronic 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.

46. How an ATM Works