Data Processing Concepts

Data
Data means any collection of raw hand figures facts. Data can be considered as the raw
material of information. The data may be numerical such as payroll, employee Number, etc.
or non-numerical like Student names, Product names, etc.
Data Processing
As data is in its raw form it cannot solve any problem. The data needs some processing to
make it useful. Data processing is the conversion of data into a more useful form. That is,
transmission of data into meaningful information is called data processing.
Information

The result obtained by data processing is called information. That is, the processed data is
known as information. However, information produced in one data processing step may be
used as data in the next data processing step.

 DATA PROCESSING CYCLE

Data Processing is viewed as a system that accepts data as input, processes it into information as output. This can be explained with the help of the following diagram.

 DATA TYPES

The data types may be as follows:
1. Qualitative data: It denotes the characteristics of things such as Average, Fair etc.
2. Quantitative data: It is expressed in terms of measurable quantities such as 10 KG, 40 degree Celsius etc.
3. Numeric Types: The data types may also be an integer (+, -) without any fractional part or
real number which includes integers and fractions.
4. Floating Point Representation: These data types consist of 3 components namely: (1) Mantissa (2) Radix or Base and (3) Exponent
Besides the above, the data types include alphabetic data and alphanumeric data.

 KINDS OF DATA PROCESSING

The important kinds of data processing are as follows:
1. Manual Data Processing: Data is processed without the help of mechanical devices. Here
the data is processed using manual things such as abacus, slide rule, Napier bones etc.

2. Mechanical Data Processing: In Mechanical Data Processing, mechanical devices like calculators, tabulators, etc, are used for processing.
3. Electronic Data Processing: In Electronic Data Processing, the data is processed by either analog or digital computer.

OBJECTIVES OF DATA PROCESSING

After the industrial revolution, the needs of the mankind increased. Man had to deal with large volume of data. He had to cope up with more and more information. The information collected is to be sorted out, stored and retrieved at short intervals. This necessitated the concept of data processing.

As the complexities of business increased, the number of functions to be performed also increased. The data processing system must be responsible to supply the information when it is needed, so as to make the performance of the organization optimum.

Let us have a look at the general objectives of Data Processing.
1. Handle huge volume of Data:
The basic objective of data processing is to handle huge data in order to enable the organization to function efficiently.
 2. Qualitative and quantitative information:
The next important want of data processing is to provide qualitative and quantitative information.
3. Proper and Timely Information:
Different kinds of information are needed in almost all organizations. Data processing provides correct and timely information.
4. Storage and retrieval of data:
Through data processing, information can be stored and retrieved as and when necessary.
5. Helps in Decision-making:
In every organization various decisions are taken at different levels. Such decisions can be more accurate if effective data processing system is used
6. Improves Productivity:
To improve productivity, various measures are to be identified and implemented. It is possible through the properly designed data processing system.
7. Maintaining Performance at Optimum Level:
To maintain the performance of the organization at best possible level various functions at different levels of the organization are to be coordinated. There should be a smooth flow of information among various functional departments. This can be easily achieved through data processing system.
8. Efficient Office Management:
In office management also data processing plays a very important role, through which office automation can be done.

STEPS IN DATA PROCESSING

 1. Identifying the data
2. Input of Data.
3. Manipulation of Data.
4. Output of Information.
5. Storage of Information

 1. Identifying the data
Accuracy of information depends on accurate data input. The first step in data processing therefore, is to locate necessary facts and figures from source documents. Accurate, relevant and adequate data must be used as input.
2. Input of data:
After extracting the necessary data from the source documents, they must be transposed in a suitable form acceptable to the computer. Great care should be taken to avoid wrong entries in the forms.
3. Manipulation of data:
It involves the process of shifting, sorting and rearranging the given input. Before processing, validation procedures may be built in to the code to so that input forms do not accept any incorrect data.
4. Output of information:
The main purpose of data processing is to provide meaningful information to the decision-maker. Hence, in data processing the person involved must be very careful about what information is needed and in what form he likes to have it.
5. Storage of information:
The data processed need to be kept for future use. All the processed data will need some form of secondary storage. When storing the data, it is always important to maintain a backup. It should be noted that at each and every step the storage might be done.

PRACTICAL DATA PROCESSING APPLICATIONS IN BUSINESS

The following are some data processing information undertaken by commercial organizations.
1. Process Control:
In the production process, a computer is directly connected to some plant to control and monitor it. Here, the computer receives the data directly from the plant. It analyses the input data and initiates action to control the on-going process.
2. Accounting:
The Data Processing System can be used to maintain the accounting records and in preparation of final accounts. The general ledger, Accounts Payable, Accounts Receivable, etc. are the examples for the computerized accounting systems followed in most business organizations.
3. Payroll preparation:
In personnel department the data processing system is used to record the operations of the number of employees of different departments in each shifts, leave taken, deductions such as ESI, PF and finally in the preparation of Pay Slips.
4. Sales Analysis:
The Data Processing system is highly useful in sales analysis. The sales manager can prepare the sales forecast on the basis of per month’s sales reports and subsequent future actions can be taken.
5. Inventory Management:
Actually the Data Processing System is a boon to every organization, in respect of inventory management. Data Processing is used to maintain up-to-date information about stock, their costs and to initiate orders when the times are about to be exhausted.
6. Office Automation:
The modem offices and business organizations are dependent upon computer based office automation for their competitiveness and better management.
7. Banking and Insurance:
Data Processing Systems are highly needed in the Banking sector where the customer satisfaction is the main criteria. To provide quick and perfect service, data processing system is used. Automatic Teller machines are places in big cities and linked to central computers. Hence, the delay in processing is completely avoided.
8. Insurance and stock broking:
Insurance companies and stock broking firms also use the computerized data processing systems. Large volume of data have to be processed for the preparation of policy statements, interest calculations, renewal notices and in dealing with the securities.
9. Managerial aid:
The Data Processing System is used as a managerial aid in decision-making for solving business problems. It is also very useful in the areas of linear programming, PERT, CPM etc. Today it appears that the computer is everywhere. Not only the business organization, the other institutions are also using data processing system for their regular use. We cannot think about a situation without a computer. Robotics and Artificial Intelligence are the two promising areas of applications.

The memory is measured by the following units:

(a) BIT (Binary digit)
It is the smallest possible unit of information. It can be either 0 or 1.
(b) NIBBLE
Four bits form one nibble

 (c) BYTE
It is a unit of information consisting of fixed number of bits. It is a combination of 8 bits
(d) CHARACTER
It is represented by one byte. It can be a letter, digit, punctuation mark or special characters.
(e) WORD
The combination of 2 bytes or 4 bytes or 8 bytes is a word.
The data measurement is as follows:
8 bits - 1 byte
1024 bytes - 1 kilobyte (KB)
1024 KB - 1 Mega Byte (MB)
1024 MB - 1 Giga Byte (GB)
1024 GB - 1 Tetra Byte (TB)
(f) SECONDARY STORAGE (Backing/Auxiliary Storage):
(a) Magnetic disk - it includes the following:
Hard disk – Rigid, Floppy disk - Flexible
(b) Magnetic tape
(c) Magnetic drum
(d) Mass storage Device - cartridge
(e) Optical Disks - CD ROM (Compact Disk - ROM)

DATA PROCESSING OPERATIONS

 The data after some processing is transformed into information, which is organized and meaningful. It includes the following operations.
1. Data Generation
It involves the operation of collecting the original data. It implies that the raw data are collected and set out in the form of original document called a source document.
2. Recording
Here raw data is converted into an acceptable form. That is, the data is transcribed from the source documents on the cards or on some other specified forms and are made readable for the machines. This operation is performed throughout the IPO cycle. The punched cards and paper tapes, magnetic tapes, a magnetic disks, tape cassettes, floppy disks, magnetic drums, tape cassettes, floppy disks, RAM cartridge, charged coupled devices, etc., are used as data recording media.
3. Verification
After the data have been recorded, their accuracy has to be checked. This can be done with the help of another machine called verifier or by re-reading.
4. Classification
Classification of information is the next important operation in which the data is separated into various categories.
5. Sorting
Sorting involves sequencing the data in a pre-determined order to facilitate processing. The order may be either alphabetic or numeric.
 6. Merging
It is the operation of combining two or more ordered (sorted) sets of data to form another single ordered set.
7. Calculating
Here calculation of greater magnitude can be processed. Calculation involves solving equations and manipulation of the source data such as addition, subtraction, etc.
8. Data Storage
The results of processing one set of data are retained in storage for future use of reference. The basic requirement for utilizing the computer in all business applications is the ability to store and access data. The data is stored in a location called memory referred by its address. In large organizations, huge volume of data is to be stored and accessed. Hence, some auxiliary storage devices are also needed for the effective data processing.

9. Data Retrieving:

Data retrieving is the process of searching or locating a data item from the storage. In EDP system, the data is retrieved from the storage device in sequential, indexed sequential or random access mode. The on-line data storage and retrieval is very useful for the proper functioning of a modern business establishment.
10. Reporting:
Generally in business data processing, the processing operation comes to an end with the
reporting of data. In this operation the results of the data processing are made available to others.
The processed information may be reported in a number of ways depending on the use of results.
The results may be printed out in the form of pay slips, bills, etc. or in the form of reports as ESI
Reports, PF Reports or Sales Reports, etc.