Commercial Data Processing

1. Commercial Data Processing The Need for CDP

2. Manual System of CDP • All information was recorded on paper records and stored in filing cabinets • Thousands of people were employed to type up invoices, reminder letters to renew policies and to calculate workers pay • Bank balances, pensions and benefits were manually counted • These processes were very slow and errors often occurred • Each letter and invoice had to be typed from the start each time • Paper records were easily lost • If one person had a record no person could see that record until it had been returned

3. Computer System of CDP Large, fast computers carry out millions of processes every day: • Vast amounts of data can be accessed and processed at the same time • Calculations processed at high speed • Repetitive tasks, such as calculating and printing invoices or bank statements to be carried out quickly and accurately • Huge amounts of data can be stored in a small space • No need to duplicate information as more than one person can access a file at the same time • Easy to produce management reports i.e. • Financial information – profit or loss of a company • Sales information – items that are selling well and items that need to be put on special offer • Customer information – contact details and records of their custom

4. Write the following statements into your jotter and fill in the missing words from the box at the bottom of the screen. Commercial Data Processing is the use of computers to gather, ______, process and _______ data on a large scale. CDP systems are better than manual systems because they: • Can cope with ______ volumes of data • Can handle __________ work easily • Can _______ data at high speed • Are very _________ and eliminate mistakes • Offer ________ access to the data Output instant high repetitive process store accurate

5. Commercial Data Processing is the use of computers to gather, store, process and output data on a large scale. CDP systems are better than manual systems because they: • Can cope with high volumes of data • Can handle repetitive work easily • Can process data at high speed • Are very accurate and eliminate mistakes • Offer instant access to the data

6. Types of companies • Which type of companies use commercial data processing? • Supermarkets • Chain stores with branches throughout the country • Mail order companies • Banks and building societies • Airlines • Police

7. Write the following statement into your jotter. • Management Information • Single Entry Multiple Use of Data Once data has been entered into the CDP system, the system makes it instantly available to everyone with access to the system. This is central to smooth running of the business or organisation. e.g.: in a bank, once data about an account withdrawal is entered it is available to any teller in the branch of the bank and indeed to the bank manager as well as the customer.

8. What is data? Write the following into your jotter. • Difference between 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.

9. What is data? • 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.

10. The 4 stages of the Data Processing Cycle Write the following into your jotter. 1 2 Data Collection and Data Input Preparation ocessing Cycle Data Pr Data Output Data Processing and Storage 4 3 Now answer the questions on WECAL

11. 1.Data Collection and Preparation • Data collection is the gathering of information which can happen in many ways. E.g.: filling forms (application forms, lottery tickets, multiple choice exam), booking a holiday at the travel agents, using a cash card at the cash line machine. • When the data is on a form, that form is called a SOURCE DOCUMENT. Data has to be entered accurately – a database is only as good as the accuracy of the data it contains!! • Source documents have to be carefully designed to gather information. Well designed forms have: 1. Short clear questions 2. Need only short answers 3. Enough space for the answer 4. Example answers 5. Multiple choice answers or Y/N

12. Direct data input methods Bar codes Magnetic stripe MICR (Magnetic Ink Character Recognition) OCR (Optical Character Recognition) Optical Mark Recognition Smart Cards

13. Bar codes • A bar code is a set of lines varying in widths which are read by passing a light pen or bar code reader across them. • Bar codes are found on most products. • They store information about the product such as: country of origin, the company that makes the product, the item itself and the check digit. (The check digit makes sure the data has been scanned correctly) • Bar codes do not hold the price, 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.

14. Magnetic stripe • You can see a magnetic stripe on the back of a bank card, train ticket and your lunch card. • A strip can hold 64 characters of data. • Must be handled with care as they can be easily damaged/bent. • Bank card – Does not hold persons name or personal identification number (PIN) • Magnetic stripe cards are now easy to forge

15. MICR • Magnetic Ink Character Recognition • Used on cheques to print the cheque number, branch number and account number. • Can be read by a machine with great accuracy and also by humans • When a cheque is paid in, a magnetic ink character reader is used to input the information to the computer system • Difficult to forge as magnetic ink can’t be photocopied

16. OCR • Optical Character Recognition • Used to read letters or numbers which are typed or handwritten. (Can’t read badly formed letters or numbers) • Used widely by the Post Office to sort mail prior to delivery by the Postman.

17. Optical Mark Recognition • Also known as mark Sense • Allows people to block out numbers on a form e.g. Lottery ticket • The form is then entered into a machine to read the marks (A mark sense reader) • This gives a very fast and reliable method of entering simple data into the computer.

18. Smart Cards • Replacing magnetic stripe cards for bank & credit cards • Use an embedded computer (or ‘chip’) that contains same data as magnetic stripe • Difficult to forge • Do not lose the information stored in their microchips, unlike magnetic strips, which are easily damaged • When buying goods must use a PIN instead of your signature

19. Verification • Ensures that data has been entered correctly • Changing your password uses double entry verification

20. Validation • Ensures that data makes sense • Range check: Is the number entered within a certain range? E.g. A month must be in the range 1 to 12 • Length check: Have the correct number of characters been entered? E.g. Credit card numbers must be made up of 16 digits • Check digit: This is calculated from the series of numbers on a bar code and added on to the end

21. Now go to your computers and test your knowledge so farof Commercial Data Processing at the following links: http://www.kelso.scotborders.sch.uk/departments/computing/resources/sg_hotpot/cdpo.htm http://www.kelso.scotborders.sch.uk/departments/computing/resources/fling_the_teacher/CDP.html

22. Data processing, storage & output

23. Data storage • Data has to be stored in an organised way that the computer can make sense of. • The Data should be stored in a FILE which contains lots of similar information. This is likely to be stored in a database. • All the information together about one item being processed makes up a RECORD. • Each individual piece of information is called a FIELD. • As soon as there is a transaction eg a sale – the file is updated to keep the data accurate

24. Backup Write the following into your jotter • Backups are used to make a copy of the data to ensure that if one version is lost or damaged then it can be replaced with the copy • Backups should be kept in a different place to the original files so that any accidents will not affect more than one set of data.

25. Interactive Processing Write the following into your jotter • Interactive processing allows files to be updated immediately after an input is made (real time) • Examples: • ATM Machine • Airline Reservation Systems

26. Multi-User Databases Write the following into your jotter Multi-User Access • Multi user access allows many people to use the same data files at the same time.

27. Random/Direct Access Write the following into your jotter • Random/direct access allows files to be read directly without having to go through all files until the required file is reached • Interactive processing is only possible if the files are stored on hard disc media. This is because hard disc drives allow random/direct access to the stored data

28. Sequential Access Write the following into your jotter • Backup copies are often made to magnetic tape that offers sequential access which must be read back in the same order it was written • Not suitable for interactive processing

29. Output to Screen Output of Information • Output to screen displays the results of computer processing but does not create a permanent record of the output

30. Output to Paper • The results of processing can be printed to paper to create a permanent record

31. Output to File • Outputted data can be saved as a new file to hard disc or magnetic tape to be reused again

32. Activity • Go to your computers and logon to the Internet • Go to www.Ryanair.com • Find out what flight times are available for two people flying from Prestwick to London Stanstead next Monday.

33. Hardware and Software CDP Systems generally use very powerful computers called MAINFRAMES. These usually have: • Very fast processors • Large internal memory capacity • Large backing storage capability • Many terminals

34. Hardware and Software A (dumb) Terminal has a keyboard and a monitor but NO PROCESSOR (CPU). Terminals are connected to the CPU of the Mainframe computer. Terminals that are far away from the computer are called REMOTE Terminals. These would be connected by telephone lines and would be part of a Wide Area Network.

35. Social Implications of CDP Effects On Business Small companies that cannot afford big Mainframe computers may not be able to compete with larger companies using CDP applications. If more people shop from home using mail order then the high street shops could lose business.

36. Effects on Business • 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

37. Job Types & Careers The widespread use of computers has led to an increase in many new job roles: • Systems Analyst • Programmers • Engineers • Network Manager

38. Systems Analyst • Looks at the manual tasks carried out in a company and decides if these can be carried out by a computer instead. • Directly responsible for the development of a system and will draw up a systems flow diagram.

39. Programmers • Write the code for the programs according to the systems flow diagram. • Write documentation that explains how the program works.

40. Engineer The main duties of the engineer are: • Installing computer system. • Provides maintenance for computer systems. • Repairs computer systems.

41. Network Manager • 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

42. Job Types & Careers - Activity Logon to your computers and search the Internet for vacant positions for the following jobs: • Systems Analyst • Programmers • Engineers • Network Manager Write down brief details of the responsibilities of these positions and the salaries offered.

43. Technical & Economic Implications of CDP

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

45. Online Shopping Online shopping allows you to buy goods electronically using a cash card and have the goods delivered to your home

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

47. Electronic Funds Transfer (EFT) Electronic Funds Transfer allows bills to be paid by computer without any money changing hands

48. Point of Sale (POS) Terminals Point of Sale (POS) terminals are shop ‘check-outs’ which are connected directly to the shop’s mainframe computer and also to the bank secure network

49. Electronic Funds Transfer at Point of Sale? • 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 customers bank account • Once this is verified the cost of the goods is deducted from the customers bank account and added to the shop’s bank account • Each of the goods bought is deducted from the shop’s stock file

50. What do companies need to set up e-commerce? • 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