Commercial Data Processing Learning Objectives Use of computers

Commercial Data Processing Learning Objectives • Use of computers in organisations • Need for Commercial Data Processing • Difference between data and information • Description of

Commercial Data Processing CDP is the processing (handling) of a huge amount of data. The Need for CDP • Process information at high speed • Handle repetitive tasks • Can work continuously and produce accurate results • Access data at a high speed • Can handle a large volume of data • Store large amount of files

Learning Objectives By the end of the period I will be able to… • Discuss the main parts of the CDP cycle • Aware of different organisations that use CDP>

Who uses CDP? • Bank • Supermarkets • Airlines • Police

Data and Information Data is a general term for numbers, characters, symbols, graphics and sound which are accepted and processed by a computer. Information is given the data a meaning. Data 95100 (for computer) Information £ 95100 (for people)

The Data Processing Cycle Data collection and preparation Data Input Data Output Data processing and storage

Data Collection and Preparation First stage of the CDP cycle is to collect data and prepare it for the computer. Source Document Data printed or written on paper, for example, an order form. These forms will be laid out clearly, so that people can fill out without making mistakes.

Data Input Stage 2 of the cycle where data is inputted directly to a computer, less people involved. • Bar Codes • Mark Sense Cards • Magnetic Stripes • Smart Cards • Character Recognition

Bar Code A bar code is a set of lines of varying widths, which can be read by passing a bar code reader across them. Used to identify goods in a shop. Price will not be programmed into the bar code a) Country b) Manufacture c) Product 5 0 1 123 4 89 3 a b c d) Check digit 4 d Check Digit There to make sure the scanner has read the bar code properly. Uses the other numbers in the bar code to calculate the check digit.

Mark Sense Cards divided up into columns that allow spaces for marking with a pencil line. A machine, a mark sense reader reads the marks by an optical scanner. Example Useful for collecting data (multi-choice type questions) Lottery Tickets

Magnetic Stripe A magnetic stripe on which data is held. The stripe can hold about 64 characters. Bank card would hold the sort code and the account number. Store card would hold the customers account number

Smart Cards (chip cards) A smart card has its own processor, and is able to store much more information than fits on a magnetic stripe. Smart cards can be used instead of cash this is known as electronic purse. Cash can be reloaded onto the card from a machine. Banks are also using smart cards in addition to the stripe. More difficult to forge. Information is stored in a chip, which are not easily damaged.

Character Recognition Process of recognising characters by a computer. The characters will not make sense to people. Examples • Magnetic Ink Character Recognition (MICR) • Optical Character Recognition (OCR)

Magnetic Ink Character Recognition (MICR) An input process which can read characters written in magnetic ink. The number along the bottom of a bank cheque are printed in magnetic ink. A magnetic ink character reader is used to input the information into the computer. Magnetic ink is difficult to forge

Optical Character Recognition (OCR) An optical character reader is able to recognise letters and numbers and read then directly onto a computer. Mistakes can be made if the letters and numbers are badly formed. You can use a scanner with suitable OCR software to read in pages of text to a word processor. Data can be stored in the form of a file, record and a field. Back Up A second copy of a file, incase the original is lost, stolen or damaged

Validation and Verification (Credit) Validation Checking the data is sensible and accurate. Does not eliminate mistakes, but make it difficult for wrong data to get through. Example is range check and check digit. Verification Checking the data has been entered correctly. Entering the same data twice is a way of verifying data. Verification is most often used to confirm a new password.

Making sure data is correct! Data entered into a computer must be correct. The process of making sure the data is correct is called error checking. • Check Digit • Number Check • Range Check

Check Digit A check digit is an extra digit which is calculated from the original numbers and put and the end of that number. 2954 2+9+5+4 = 20 + 1 = 21 Check digit is 1 29541

Number Check Used in database field to specify the number of characters allowed in a field. Postcode Max - 6 characters Range Check To check the numbers are sensible • Age <50 >16 • Date <1 >31

Data Processing and storage The third stage of the cycle which involves the process and storage of data. Database FILE is an organised collection of data. RECORD is an item which makes up a FILE. An individual card. FIELD is the separate items that make up the record.

Interactive Processing A method of processing information. Data is processed or updated as the transaction is entered, and any enquires are replied to at once. An example is booking a airplane ticket or lifting money from a cash machine.

Reading Data Two ways of reading, or accessing data files: Sequential Access and Random/Direct Access Sequential Access The user would have to go through all the records in sequence to get to what they want. An example of this is magnetic tape Random/Direct Access Data can read directly without having to work through the other data. Optical disk is an example of this.

Multi User Database (credit) A multi-user database is one which can be accessed by many users at the same time. For this to work the database must be stored centrally, for example, on a mainframe or a server. User cannot change the same record in the file. If this happens one user will be locked out.

Data Output (4 th Stage) After the data has been processed, the information can be outputted on: • Paper • Screen • Saved as a file

Paper Information for customers, like bills or statements, is normally outputted in printed form. Businesses use pre-printed stationary Banks, stored card companies etc use pre-printed stationary to send of to their customers. This is paper with printed information on it. Customer account number, name and address.

Screen Information can be outputted onto a screen. Banks use electronic billing for their customers through the internet. This can save the company money, no need to send their bills using the postal service.

File Instead of outputting data to a printed or displaying it on a screen it can be saved as a new file. This can be held on a disk of magnetic tape. Can be used at a later date.

Hardware and Software Used Hardware used for CDP consists of a MAINFRAME. A mainframe computer is made up of several devices: • Central Processing Unit (CPU) • Input Devices • Output Devices • Backing Storage Device • Terminals • Operator Console

Terminal These are used for data input. Consist of a keyboard and a screen. Do not have own processor. The do not have to be in the same room as the mainframe. The can be in a different building. This is known as remote terminals.

Multi-User Access Many users using the same system at the same time.

Implications of CDP - Social Can cause major problems to businesses. The introduction of computers can cause: Disadvantages Advantages Job Lose Employees learn new skill Employees need retrained More competitive Up-keep of computers On-Line Banking Fear of computers On-line Shopping

Implications of CDP – Economic Initial Cost The cost of setting up the system are extremely high. • Training • Hardware & Software • Maintenance (running cost)

Security and Privacy All large companies hold data about their employees. Companies would therefore have to register with the Data Protection Act • Accurate • Up-to-Date Sale of Customer List Companies sell there data to other companies. Data such as names and addresses of current customers. This is why we get so Junk Mail.

Job Types and Careers The introduction of computers has introduced many new types of jobs. • Network Manager • Systems Analyst • Programmer • Engineer Network Manager Person in charge of the network. Responsible for all computers attached to the network. Decides usernames and passwords along with access levels.

Systems Analyst Plans how the computer system will be used within a company. • Visit company and examine how the manually carry out tasks (systems analysis). • Chats to staff. • Write a report with details of cost of installation. • Once system has been installed the analyst will look for ways to improve the system.

Programmer Will write or buy(off the shelf) the programs specified by the systems analyst. He will check programs have no mistakes and take them out (debugging) Programmer will write documentation for the program so people can understand how to use it.

Engineer Visits the company to repair and inspect computers. Maintenance contracts are usually set up with a company.

Computer Crime (Credit) Fraud Computers can be destroyed, corrupted or files changed. Money can be stolen by computer fraud. Hacking Gaining access to a computer system from anywhere outside the company, usually via the internet. Companies can make hacking less easy by changing their security passwords regularly and keeping them secure.

Virus A program that someone has deliberately created. A computer virus is able to make itself invisible to the computer until it passes into the memory of a host computer.

Electronic-Commerce (e-commerce) Process of conducting business on-line. • On-Line Shopping • On-Line Banking On-Line Shopping Process of purchasing goods from the internet.

Process of On-line Shopping • Search for produce • Select produce and checkout • Give name, address and bank details • Choice of delivery • On completion you will be sent a confirmation e-mail Paying for your purchase • Cheque guarantee card • Cash Card • Credit card • Multifunction card • Debit card

Advantages and Disadvantages for companies Advantages • No need to employ staff • No need for premises • Larger choice • Impulse shopping Disadvantages • Bank Fraud

Advantages and Disadvantages for customers Advantages • 24 shopping • Large amount of products available Disadvantages • Bank Fraud (card holder not present) • Have to wait to receive good by post. • can compare prices • Have to return good through post.

Electronic Funds Transfer (EFT) Automatically moving money from one account to another using a computer system where no cash changes hands. Point of Sale (POS) Place in a shop where the goods change hands. Checkouts.

Electronic Point of Sale System This is the name given to the computerised system used within shops. • Use bar codes • Scanner reads the data from the bar code • Computers are connected to checkouts • Itemised receipt

Advantages of EPOS Disadvantages of EPOS • Quicker and easier for shopper • Mistakes can be made at the pricing stage. • Itemised Receipt • Multi packs must have separate bar codes • Shop can keep records of sales • Sales can be set up easily • Fewer staff needed • No need for shop keeper to remember prices.

Electronic Funds Transfer at Point of Sale (EFTPOS) A way of paying for goods using a bank card instead of cash. Advantages of EFTPOS Disadvantages of EFTPOS • Payment is guaranteed by the system • Expensive to install • Less chance of theft • Easy to overspend! • Customer has to keep • Less paperwork, no cash, track of account-does not come off account for 2 days no cheques

Implications Initial Cost • Price of setting up the system are high • Hardware and software expensive Running Cost • Hardware needs maintained • Software licenses renewed • Electricity • Paper • Toner

Implications - Security and Privacy Data Protection Act All companies hold data about their employees and customers on computer. Any information which a company holds must be registered under the Data Protection Act. Data must be: • Accurate • Kept up to date • Kept private

Physical and software security Data kept in a secure place, for example: • Locked room • Protected by password • Encryption • Different levels of access

Sale of Customer Lists Companies sometimes sell their lists of customers names and addresses to other companies. This is how junk mail originates. Advertising Standards Authority imposed strict regulations on sales of customer lists. • Person must be told • Person has the right to stop their name being used • The company must remove his/her name if asked.