Transcript Commercial Data Processing

COMMERCIAL DATA
PROCESSING
Chapter 13
WHAT IS COMMERCIAL DATA
PROCESSING?
Describes the way large companies and
businesses use computers to process data
Examples of companies that use CDP
include banks, supermarkets and airlines
Examples of organisations that use CDP
include the police, passport office and
hospitals
WHY USE CDP?
Companies and organisations share a
number of common characteristics.
They need:
to store a large amount of data
to process a large volume of data
quick access to data
data to be processed accurately
to perform repetitive tasks on data
COMPUTERS ARE BEST AT DOING
ALL THESE TASKS!!!!
Companies who use CDP
DATA V INFORMATION
COMPUTERS PROCESS DATA
PEOPLE USE INFORMATION
DATA BECOMES INFORMATION
WHEN PEOPLE UNDERSTAND
WHAT IT MEANS
WHAT IS DATA?
DATA is a general term used for
numbers, characters and symbols
which are accepted and processed by
the computer.
Information (for people)
EQUALS
Data (for computers) with structure
WHAT IS INFORMATION?
For Example 12/11/1987 is meaningless
data UNLESS YOU UNDERSTAND
12
11
1987
represents the 12th day of the
month
represents the November the 11th
month of the year
refers to the year 1987
Example of Data and
Information
Single Data Entry/Multiple
Use (C)
In most organisations the same data is used by many
departments
Data is entered by one department (single data entry)
and then used by all departments (multiple use)
Single entry should be more accurate than each
department entering their own data
THE DATA PROCESSING CYCLE
This is the order in which data is
processed. There are four stages: Data
Data
Data
Data
Collection and Preparation
Input
Processing and Storage
Output
1
2
Data Collection
and Preparation
Data Input
4
Data Output
3
Data Processing
and Storage
STAGE 1
DATA COLLECTION
AND
PREPARATION
DATA COLLECTION AND
PREPARATION
The first stage of the data
processing cycle is to collect and
prepare data so that the computer
can understand it.
Data can be collected in a number of
different ways.
DATA COLLECTION METHODS
Form filling e.g. catalogue
order, lottery ticket
Using special code
readers e.g. electricity
meter
Verbal e.g. telephone
ordering
DATA PREPARATION
The collected data must
be made ready for
processing by the
computer.
STAGE 2
DATA INPUT
BAR
CODES
used on most goods that you can buy
e.g. tins of food, books, CD’s
Also used on membership cards
e.g. libraries, video clubs, driving
licence
How Do Bar Codes Work?
made up of a series of lines of
different widths
read by a bar code reader
lines provide information about a
particular product
J Walsh bar code = 9 78 0340 60556 1
9
78
0340
60556
1
indicates it is a publication
indicates it is a book
indicates the publisher
identifies the book title
is used to check the accuracy of
the bar code
Other details regarding the book are stored on
the main computer NOT in the bar code eg
• Price
• Stock levels
MAGNETIC STRIPES
used on bank and credit cards
train tickets
used for security access
membership and ID cards
How do magnetic stripes
work?
a magnetic stripe usually holds 64
characters
(limited amount of data can be
stored)
read by swiping the card through a
magnetic reader
magnetic characters
represent the data
Smart Cards (C)
Used on bank cards or as identity cards
Chip and Pin cards are smart cards
Called smart because they have their
own microprocessor and can store
information on the card.
(Can store more on a smart card than
you can on a magnetic stripe card.)
Mark Sense Cards
This is a card (or sheet of paper) with
empty boxes/circles that you can fill in
or leave empty.
A mark sense reader can read the data
on the card and enter it into a
computer.
Used for registration and the lottery.
CHARACTER RECOGNITION
• Magnetic
• Ink
• Character
• Recognition
(MICR)
• Optical
• Character
• Recognition
(OCR)
MICR
characters printed in magnetic ink on
a form
e.g. bank account details on a cheque
How the computer reads
cheques
The magnetic ink characters are
made up of a series of thick and
thin lines
A magnetic ink character reader
enters the data into the main
computer
OCR
an optical character reader
recognises letters and
characters
a scanner uses OCR software
to read in text
Checking Data Accuracy (C)
It is very important that data entered
for processing is accurate.
There are 2 ways of checking for data
accuracy
Data Validation
Data Verification
Validation of Data (C)
Validation means checking the
data entered makes sense and is
valid, allowable and acceptable
For example if asked to enter
date of birth an entry of ‘Fred’
would be neither sensible or
valid therefore it should not be
accepted.
Data Validation
Validation checks can be programmed
into the computer
There are several methods of validation
CHECK DIGIT
RANGE CHECK
LENGTH CHECK
Check Digit (G)
Extra number is added to the end of
the identification number being
entered
This number is used to check the
previous numbers have been entered
correctly
It’s value is calculated from all the
other numbers being entered
Example of a Check Digit
Identification number (bar code)
245375
One way to calculate the check digit is to
start at the right and multiply the first
number by 1, the second by 2, the third
by 3 and so on.
What answer do you get?
Your calculation should look like this
(6x2)+(5x4)+(4x5)+(3x3)+(2x7)+(1x5) = 80
But, if we use 80 for the check digit it would
be 2 digits not 1.
The solution is to divide 80 by 11 and take
the remainder as the check digit
What would be the check digit for our bar
code?
The check digit for the bar code
245375
Would be 80 / 11 = 7 r 3
Therefore the check digit is 3.
Calculations like these are easy for
computers to perform quickly.
Another check digit example
Original Bar code
36278
= (5x3)+(4x6)+(3x2)+(2x7)+(1x8)=67
Divided by 11 = 6 remainder 1
Therefore final bar code with check digit
=
362781
Range Check
Checking the data entered is within an
allowable range
Eg day of the month must be greater
than 0 but less than 32
Month of the year must be greater
than 0 but less than 13
Length Check
The computer can check how long a
piece of data is.
Date of birth dd/mm/yy 14/02/04
Postcode aadd ddaa PA12 05XY
Month – September – 9 letters – max
length is 9.
Data Verification – Double Entry
Carried out at data entry stage
Checks that data is entered exactly as it
appears on the original document
Same data is entered by different
operators
Highlights common spelling and typiing
mistookes - but time consuming
and expensive
Used when you change
your password.
STAGE 3
DATA PROCESSING
AND STORAGE
Interactive Processing
Program runs continuously and reacts to what
is input.
Human interaction required.
Immediate results/feedback – also know as
Real Time Processing.
An example would be a booking service for
tickets
Data Storage
One item of data is stored in a FIELD
Lots of related fields are called a
RECORD
Lots of related records are called a
FILE (or a DATAFILE)
This is revision from Databases.
Storing Data (C)
A vast amount of files are created during
Commercial Data Processing.
These files need to be stored somewhere
There are two ways of accessing stored files
:Sequential Access
Direct Access
(This is revision from Computer Systems.)
Sequential(Serial) Access (C)
Used when data is stored on magnetic tape
Need to go through every file to reach the
file you want. (Like video)
Tapes are cheap but are slow to access files.
Tapes are good for backups.
Random (Direct) Access (C)
Used when data is stored on any type of
disc.
Data can be accessed randomly/directly.
Fast speed of access
•Good if information
is needed quickly
•More expensive than
magnetic tape.
Multi-user Databases (C)
In large organisations it is essential
that many people can access the same
database at the same time – this is a
multi-user database.
eg Travel agents – lots of offices may
be looking at the same flight at the
same time.
Updating data
It is important to keep data in a large
organisation up-to-date. Data is updated
whenever is it changed.
In a bank, your data is updated immediately
whenever you take money out, or put money in.
When you pay a gas bill the data may be
updated overnight.
When you book a holiday the file is updated
immediately.
Backup
A backup is a copy of
the original data.
Backups are taken in
case the original is lost
or damaged.
The backup copy should
be kept in a different
location from the
original file.
Backups should be taken
regularly.
STAGE 4
DATA
OUTPUT
Output
Once the data has been processed the
information comes out of the computer
either onto a monitor or in printed form.
The output following the processing of
an electricity account would be the
electricity bill – on paper.
Output to File (C)
Sometime processed data is saved to
file rather than output to a monitor or
printer.
This is advantageous because it means
the data could be processed again by
simply reloading it into the computer.
Hardware in CDP
Mainframe Computer
Big enough to fill a
whole room
Cost millions of
pounds
Enormous processing
power
Features of a Mainframe
Computer
Many processors for data
processing, storing
programs and coordinating
devices
Input devices
Output devices
Backing store (magnetic
tape or disk)
Operators console
Terminals (may be remote)
Terminal
Consists of a keyboard and
a monitor
The terminal is not always
connected to the main
computer
In some organisations,
terminals cannot work
without superior control
from the mainframe
Remote Terminal
Does not have to be in the
same room or building as
the mainframe.
eg Lottery Machines in
shops throughout Britain
Data is passed from
remote terminal to
mainframe when the
terminal is online
STAFF INVOLVED IN CDP
Systems Analyst
Analyses how CDP can help a business
What manual jobs could be done by CDP?
Designs Systems Flow Diagram detailing steps
involved in CDP
Reports back on findings
Once CDP system is up and running the
Systems Analyst will continually look for ways
of improving the system.
Programmer
Writes programs
needed to process the
data.
“Off the shelf”
software may be
suitable but usually
software is custom
made for a specific CDP
function.
Network Manager
Concerned with the day to day
running of the computer system
Main task is to make sure the
whole system is operating
properly
Updates network software
Can usually fix faults remotely
Usually deals with software
faults
Engineer
Fixes broken hardware
Effects on Business
Some jobs have disappeared because of
computers in commercial data
processing and new jobs have been
created. The job might still exist, but
what the person does has changed.
Some businesses moved to CDP to
remain competitive.
Computer Crime (C)
You should already know about :
Data Protection Act
Computer Misuse Act
Copyright, Design & Patents Act
The Data Protection Act
Parties involved
(Revision – Credit level)
Data Controller (the holder of the
information)
Data User (the person who uses the
information)
Data Subject (the person who the data
is about)
The Data Subject
(Revision – Credit level)
Has the right to:
inspect information held about them
have incorrect information changed
apply for compensation if incorrect
information causes distress.
The Computer Misuse Act (C)
(Revision - Credit Level)
Makes it illegal to access a computer
system without permission
Unauthorised access
Unauthorised access with intent to
commit an offence
Unauthorised modification of data
Hacking and sending computer
viruses are both made illegal by this
act.
Finding Hackers (G)
Intruder alert software
should be installed to
alert the company to
hackers.
Even with this software
the use of remote
terminals can make it
difficult for a company
to find out the identity
of hacker
The Copyright, Designs & Patents
Act (C)
Most published material (including text, images,
video, music, software etc) is protected by the
Copyright, Designs and Patents Act 1988.
You are in breach of Copyright if, without the prior
permission of the copyright owner, you
Copy a work (including scanning or storing
electronically)
Issue copies to the public
Perform, show or play the work in public
Broadcast the work or include it in a cable
programme
Make an adaptation of the work
Computer Fraud (C)
Type of hacking.
Involves moving money to your own
account. (From company or someone
else.)
EFTPOS
Electronic Funds Transfer
Funds to pay for the sale of the goods are
transferred electronically from the
customer’s bank account to the shop’s bank
account
Point of Sale
A computerised system which collects data
automatically at the checkout
Electronic Funds Transfer
EFT
Paying for goods without using money or
cheque
Funds are transferred electronically by the
banks concerned
ELECTRONIC FUNDS TRANSFER AT POINT
OF SALE means the transaction takes place
at the Point of Sale (checkout)
Stages in EFTPOS
1.
2.
3.
4.
5.
6.
7.
Items taken to checkout (POS)
Bar code scanned
Scanned product code sent to computer
Till displays name and price of item
Total bill is displayed
Customer gives card
Card is read by the magnetic stripe reader or chip and
pin reader
8. (Authorisation receipt is printed and signed – if
magnetic stripe card is used)
9. Itemised receipt is printed
Costs of CDP
Costs can be broken down into the
following areas : INITIAL COSTS
RUNNING COSTS
Initial Costs or Set Up Costs
Costs involved in transferring from
manual data processing to CDP
Analysis
Buying hardware, installing hardware
Adapting the workplace if necessary
Buying software
Training workers to use new hardware
and software.
Running Costs
Any cost involved with keeping the system
running.
Consumables (paper, stationery, disks, tapes,
etc)
Repairs/maintenance of hardware/software
Physical upkeep of CPD premises (heat, light,
etc)
Special building requirements for CDP (air
conditioning for mainframe)
Staff Costs – one of the running costs
Redundancy costs of manual
staff no longer required?
Recruitment of CDP
specialists
Training of staff (ongoing)
Companies will try to save
money on wages and use less
people and more computers.
Mass Market
This term means all the people you want
to sell your goods to.
By using CDP you would be able to deal
with more people.
Accuracy
Companies which keep information
about us must keep it up to date and
accurate.
This is one of our rights under the Data
Protection Act.
Personal privacy
CDP raises concerns about privacy of
data. Companies who are processing
data must keep within the law.
They must also take steps to ensure
the data they hold is secure.
We have rights under the Data
Protection Act.
Sale of customer lists
To help cover some costs, companies
may sell their customers details to
other companies.
This is why we get so much junk mail.
This can be a very profitable business
but customers may object to their
personal details being passed on.
It is legal for companies to do this.
Sharing Customers Details
Companies buying these lists have a
ready made database of potential
customers.
If customers do not want their data
sent to other companies they must
inform the company holding their data.
Advertising Standards Authority
Imposed regulations about the sale or
transfer of customer mailing lists.
Customer must be told their data may be
passed to other companies.
Customer can stop this by saying no (usually
ticking a box).
If asked, the company must remove the
customers name from the list.
Keeping Data Secure in CDP
Different levels of authority can be given to
staff within the CDP Department.
Data Processing Operators may be given read-only
access to certain data.
The Data Processing Manager would have full
access to all data.
This is achieved by giving each user a
password and a level of access. This is known
as Software Security.
When a user moves away from their computer
they should log off.
Physical Security
To keep data physically secure you
could
Lock the door
Have a security system for getting in
(card, keypad, fingerprint/retina
recognition etc)
Keep backup copies locked away
Advantages of CDP
Data is processed faster using CDP than using
the old manual system.
In the long run, it will be cheaper to run your
business using CDP than using the manual
system.
Using computers allows companies to keep
large databases with all their customers
details on them. This makes it easy to inform
customers of the latest deals.
Management Information
Managing a Bank with CDP
Bank Managers could use
CDP to highlight unusual
paying in or withdrawal
activity
Trends can be monitored
and analysed to allow for
better planning in the
future
Management Information
Managing a Supermarket using CDP
Supermarket management can keep track of
stock flow into and out of the business
Individual checkouts/operators could be
monitored