2. Standard Grade Computing COMMERCIAL DATA PROCESSING CHAPTER 13

3. Standard Grade Computing Need for CDP VOLUME OF DOCUMENTS MANY transactions need to be processed daily SPEED OF PROCESSING Data has to be processed accurately at high speed IMMEDIATELY SPEED OF ACCESS Customer details need to be accessed IMMEDIATELY REPETITIVE TASKS Computers don’t get bored & quickly complete jobs e.g. customer letters FOUNDATION

4. Standard Grade Computing Need for CDP MANAGEMENT INFORMATION Data entered & immediately available for viewing Manager can compare sales of goods Can see which goods are popular Can share data with other branches CREDIT

5. Standard Grade Computing Advantages Orders can be processed quicker than with a manual system Calculations are accurate without human error Errors are less likely - checks built into computer programs Large quantities of data can be stored in a small space Very large customer lists can be stored & kept up-to-date Companies can easily keep in contact with their many customers either by letter or by email Direct mailings can be done automatically using mail merge Data more secure than with a manual system GENERAL

6. Standard Grade Computing Data Processing Cycle DATA Unprocessed raw facts and figures that have been entered into a computer & has no meaning to a person e.g. 0110 1001, 5.364 INFORMATION Processed data that is placed in context & can be understood by a person. e.g. £63.21, 525 metres GENERAL

7. Standard Grade Computing Data Processing Cycle COLLECTION & PREPARATION INPUT PROCESSING STORAGE OUTPUT FOUNDATION

8. Standard Grade Computing Data Collection, Preparation & Input DATA COLLECTION & PREPARATION Can be written, printed (source document) DATA INPUT FOUNDATION Bar Codes Magnetic Stripe Mark Sense Cards

9. Standard Grade Computing Accurate Data Entry MICR – Magnetic Ink Character Recognition Will input special characters on the bottom of cheques CHECK DIGIT Calculation performed on other numbers. If answer equals check digit then data entry correct LENGTH CHECK Must have a certain number of characters e.g. PIN on an ATM card = 4 numbers RANGE CHECK from numbers e.g. month entry is between 1 and 12 GENERAL

10. Standard Grade Computing Data Collection, Preparation & Input SMART CARD Bank cards which contain a microprocessor Contains more data than magnetic stripe OCR – Optical Character Recognition Will recognise & input characters directly into the computer as text VALIDATION Will check that data is acceptable as you try to enter it e.g. range check VERIFICATION Will check that data has been entered correctly CREDIT

11. Standard Grade Computing Data Processing & Storage WORDS & MEANINGS FIELD (column): 1 item of information e.g. name RECORD (row): Information on 1 person or thing FILE (table): A collection of related records DATABASE: A collection of related records UPDATE: Correct changed information e.g. new address BACKUP: Extra copy of program/data for use in an emergency FOUNDATION

12. Standard Grade Computing Data Processing INTERACTIVE PROCESSING Data is processed / updated as the transaction is entered. Any enquiries are replied to immediately. REAL TIME PROCESSING A system which responds immediately to input e.g. booking a flight Accessing processor there and then BATCH PROCESSING Data gathered over time & entered into the computer Processing happens in 1 run, often overnight when the processor is quiet GENERAL

13. Standard Grade Computing Data Storage SEQUENTIAL ACCESS Data read in order stored, from start to finish. Slow access so usually for backups DIRECT/RANDOM ACCESS Data accessed immediately using the index at the start of the disc MULTI USER DATABASE Many users / terminals accessing the data AT THE SAME TIME MULTI ACCESS Many users online to a computer system (mainframe) AT THE SAME TIME CREDIT

14. Standard Grade Computing Data Output PAPER Information can be printed out then viewed SCREEN Information can be viewed on the computer screen FILE (Credit) Data can be stored as a file to be viewed / processed at a later date. FOUNDATION

15. Standard Grade Computing Hardware & Software MAINFRAME COMPUTER A computer system that can process large amounts of data at high speed SYSTEM TERMINALS Input & output devices used to access the mainframe processor REMOTE TERMINALS A terminal is a separate building from the processor FOUNDATION

16. Standard Grade Computing Social Implications EFFECTS ON BUSINESS Expensive for companies to buy / maintain replace computers Staff need to be trained for software / hardware changes Less staff needed as computers now do repetitive jobs quickly Staff needed to install / repair / look after computers Many jobs now use computers so IT skills needed Online businesses allow people to shop from home Some businesses now not operating Must still know old skills if computers ‘go down’ FOUNDATION

17. Standard Grade Computing Social Implications JOB TYPES & CAREERS PROGRAMMER Codes programs to be run on the computer SYSTEMS ANALYST Decides which hardware / software to recommend to do a job ENGINEER Installs new computers & keeps them running NETWORK MANAGER Person in charge of the network. Responsible for all systems attached to the network. GENERAL

18. Standard Grade Computing Social Implications CREDIT Computer crime / fraud Computer Misuse Act states that it is illegal to Access / alter data without permission Use data to commit a crime - fraud Create / introduce a virus to a computer system A virus is a program which reproduces itself automatically and may cause damage / loss of valuable information

19. Standard Grade Computing Technical Implications E-COMMERCE The process of conduction business online e.g. buying / selling goods ON-LINE BANKING Banks can save money on staff & buildings Customers can bank from home with no travelling 24 hours service ONLINE SHOPPING Can compare prices easily Prices cheaper Can shop at any time with home delivery FOUNDATION

20. Standard Grade Computing Technical Implications EFT – ELECTRONIC FUNDS TRANSFER Card is swiped Customer details checked to see that there is enough money in bank account If enough, then, money removed from customer’s account and transferred to business’ account e.g. supermarket, garage etc. POS – POINT OF SALE (sometimes EPOS) The place where you pay for goods in a shop or checkout Computer will remove sold items from stock list Connected to company mainframe computer Bar code reader often present GENERAL

21. Standard Grade Computing Economic Implications INITIAL COSTS Money needed to buy all of the hardware & software at first RUNNING COSTS The costs that are needed to keep the system operating e.g. printer ink / paper, electricity, repairs MASS MARKET People from all over the country can buy the goods FOUNDATION

22. Standard Grade Computing Security & Privacy Accuracy of Information Data must be kept up to date & correct – legal requirement If incorrect data is pointed out, it must be changed Privacy Only authorised people can access the data Different levels of access available to different employees FOUNDATION Hello world the sun shines Hell word the sin shines

23. Standard Grade Computing Security & Privacy Physical Security Computer rooms locked with limited access Software Security Passwords required to access certain files Sale of Customer Lists Companies can sell customer data to other companies to allow them to send details about their products – junk mail GENERAL

24. Standard Grade Computing Implications & Advantages SINGLE ENTRY MULTIPLE USE Data is entered once & can be accessed by many users Amendments / updates only need to be done once Changes available to all users immediately CREDIT

25. Standard Grade Computing And there is more…. Can you wait for the next exciting chapter?