UNIT 6 DATA PROCESSING

Structure
6.0 Objectives
6.1 Introduction
6.2 Data and Data Processing
6.2.1 Data and Information : Meaning
6.2.2 Data Processing
6.3 Data Processing System
6.4 Methods of Processing Data
6.4.1 Manually
6.4.2 Mechanically
6.4.3 Electromechanically
6.4.4 Electronically
6.5 Developments in Data Processing
6.6 Basic Data Processing Operations
6.6.1 Information Processing Cycle
6.6.2 Data Processing Activities
6.7 Data Storage Hierarchy
6.8 Modes of Data Processing
6.8.1 Interactive Processing
6.8.2 Batch Processing
6.8.3 On-line Processing
6.8.4 Multi-access and Time-sharing System
6.8.5 Distributed Processing
6.9 Advantages of Data Processing
6.10 Summary
6.11 Answers to Self Check Exercises
6.12 Keywords
6.13 References and Further Reading

6.0 OBJECTIVES
After reading this Unit, you will be able to:
• describe the basic concepts of data processing;
• define the terms data, data processing and data processing system;
• learn about the role of computers in data processing and the basic structure
of a computer based data processing system;
• learn about different methods of processing data and the developments
taking place in this direction;
• describe the five basic data processing operations; and
• discuss the different modes of data processing.

6.1 INTRODUCTION
176 Organisations come into existence to meet particular needs and to fulfill certain
objectives. All organisations, large or small, depend on reliable and up-to-date
information; but as organisations grow in size and complexity – in terms of Data Processing
their activities, the number of employees involved, the amount of money
expended, the number of suppliers and customers – the collection, storage and
retrieval of information needs to be formalised. A common approach to coding,
with agreement on the meaning of codes, is necessary; the source and
availability of information needs to be known; and above all, the correct
information needs to be made available at the right time for decisions to be
made.
The operations of a digital computer are carried out by logic circuit and data is
input stored and processed and transmitted to other humans or another computer.
In this Unit, you will be introduced to certain basic concepts of data processing
in computer systems. You will learn how computers can be used to process
data. The need for converting facts into useful information is not a phenomenon
of modern life. Throughout history, and even prehistory, people have found it
necessary to sort data into forms that were easier to understand. For example,
the ancient Egyptians recorded the ebb and flow of the Nile River and used
this information to predict yearly crop yields. Today, computers convert data
about land and water into recommendations to farmers on crop planting.
Mechanical aids to computation were developed and improved throughout the
seventeenth, eighteenth, and nineteenth centuries. Modern computers are
marvels of an electronics technology which can process data with great speed
and accuracy. Information is accurate when it is free of errors. Inaccurate
information can result from the use of inaccurate data. In the world of computers,
the acronym GIGO refers to the use of inaccurate data. It stands for Garbage-
In, Garbage-Out. If incorrect data (garbage) is put into the computer, the
information the user gets from the computer will also be incorrect (garbage).

6.2 DATA AND DATA PROCESSING

6.2.1 Data and Information: Meaning
The word Data is the plural of datum, which is a statement accepted at face
value. Data on its own has no meaning, only when interpreted by some kind of
data processing system does it take on meaning and become information. Data,
then, are facts, the raw material of information. As used in data processing,
information is data arranged in an order and form that’s useful to the people
who receive it. People or computers can find patterns in data to perceive
information, and information can be used to enhance knowledge. That is,
information is relevant knowledge, produced as the output of data processing
operations and acquired by people to enhance understanding and to achieve
specific purposes. Since knowledge is prerequisite to wisdom, we always want
more data and information. But, as modern societies verge on information
overload, we especially need better and efficient ways to find patterns.
Raw data are numbers, characters, images or other outputs from devices to
convert physical quantities into symbols, in a very broad sense. Such data are
typically further processed by a human or input into a computer, stored and
processed there, or transmitted (output) to another human or computer. Raw
data is a relative term; data processing commonly occurs by stages, and the
“processed data” from one stage may be considered as the “raw data” for the 177
next.
Introduction to Computer A digital computer represents a datum as a sequence of symbols drawn from a
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fixed alphabet. The most common digital computers use a binary alphabet,
that is, an alphabet of two characters, typically denoted by “0” and “1”. More
familiar representations, such as numbers and letters, are then constructed from
the binary alphabet.
6.2.2 Data Processing
Data are a collection of facts-unorganised but able to be organised into useful
information. Processing is a series of actions or operations that convert inputs
into outputs. Hence data processing can be defined as any process that converts
data into information. The processing is usually assumed to be automated and
running on an electronic computer. According to Encyclopaedia Britannica
data processing is manipulation of data by a computer. It includes the conversion
of raw data to machine-readable form, flow of data through the CPU and
memory to output devices, and formatting or transformation of output. Any
use of computers to perform defined operations on data can be included under
data processing. In the commercial world, data processing refers to the
processing of data required to run organisations and businesses.
We have established that organisations need information; the production of
this information is known as data processing. Data can be defined as a set of
symbols that are used to represent objects, events or activities within the real
world as we know it. We can refer to people by their name, e.g. Barry, or we
can give them a number such as a student number. In computer based systems,
where precision in identifying objects is required, we usually find that numbers
are used to identify them partly because numbers can be easily represented
within the computer and partly because they can be readily manipulated.
Just as objects can be coded, so can events and activities. For example, when
you make a purchase in a department store, that activity can be coded by its
date, the amount involved, the code number of the item purchased, and the
type of transaction (i.e. whether you paid by cash or by credit card).
Normally, data can be seen as a collection of meaningless symbols until they
are processed. The purchase in the department store mentioned above might
be recorded as
19047900126913876547
which is just a string of digits until use is made of it. The processing of data
involves the execution of various operations on the data (i.e. manipulation of
the data) into a form which is meaningful to a human being or another machine.
When it is meaningful, it is usually described as information.
Processing can include arithmetic operations (add, subtract, multiply, divide),
logic operations (checking, testing, comparing) or simple movement operations
(editing, transmitting, displaying, recording). Thus data processing can be
considered to be the manipulation of symbols to produce information that is
useful to the recipient.
The use of computers in data processing
A model of a manual system of data processing in a clerical environment is
shown in figure 6.1. The clerk takes documents from the in-tray and places
178 them temporarily on his/her desk for processing. The processing required is
defined in a book of procedures (which may be so familiar that it is actually
committed to memory). It may involve calculations (using a calculator) and Data Processing
almost certainly will involve accessing information stored in a filing cabinet
as long-term memory. After the procedures have been followed the document
is placed in the out-tray. For example, a clerk may have the task of checking
the credit-worthiness of an order. He/she takes the next order from the in-tray
and places it on the desk. The procedure is familiar; it involves deriving an
approximate value for the order by multiplying quantity by price for each item
on the order, totaling the item values and applying a discount. (This may involve
access to a product file to determine prices and to a customer file to determine
discounts.) The customer file is then accessed to discover the current balance
and credit limit. A further calculation is performed ((current balance + value
of order) – credit limit); if the result is negative the order is credit-worthy and
is put in the out-tray; if the result is positive the order is rejected as not credit-
worthy and passed to the supervisor for action.
C

IN-TRAY D

B
PRO

CAL

Fig. 6.1: Model of a Clerical Data Processing System

(Source : Lee, Barry S., 1984)
Something similar to this happens within a computer system. Figure 6.2
illustrates the computerised system of processing. Input data is read from an
input device into main store. There a program is already stored (this has caused
the input data to be read. It performs the appropriate calculations in the
arithmetic unit (using data from backing storage as required) and then sends
the results to the output unit.

INPUT
DEVICE

Fig. 6.2: Model of a Computerised Data Processing System 179

(Source : Lee, Barry S., 1984)
Introduction to Computer The units of data for processing, such as individual customer orders or individual
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time sheets, are called transactions. Incidently, the act of processing such a
unit of data is also called a transaction but the context should make it clear
which meaning is intended. According to the determining factors transactions
may either be processed singly or in batches. A batch is merely a number of
transactions (e.g. In the form of source documents) accumulated together and
processed as a single unit.

Batch introduces a time-lag into the processing cycle but also introduces some
useful controls e.g. checking that a batch contains the required number of
documents helps to detect and correct document loss.

Self Check Exercise

1) What is the difference between information and data?

Note: i) Write your answer in the space given below.

ii) Check your answer with the answers given at the end of this Unit.

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6.3 DATA PROCESSING SYSTEM

When we speak of a data processing system, we are concerned with the set of
elements which come together in a systematic way to process data into
information; these elements will consist of rules, procedures, files, computers,
pens, paper, and above all, human beings. Humans are involved at various
stages of the processing, and often machines are involved also. As shown in
Figure 6.3, which depicts input data being processed to become useful output
information, there are four types of resources: people, materials, facilities, and
equipment. People provide input to computers, operate them, and use their
output. Materials, such as boxes of paper and printer ribbons, are consumed in
great quantity. Facilities are required to house the computer equipment, people,
and materials. A typical data processing system in an organisation is the payroll
system; in simple terms it collects data about hours worked, relates it to rates
of pay and calculates wages. In addition to producing pay slips, this data
processing system can also generate information for management decision-
making about job costs, manpower scheduling, absenteeism, recruitment needs,
and so on.
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 Data Processing

Fig. 6.3: A Data Processing System

(Source : Gore, Marvin R. and Stubbe, John W., 1984)
Usually a data processing system is based around a set of files, containing all
data relevant to a particular task. A manufacturing organisation will have files
of data about the structure of its products; a local authority will have a file of
data about its electors; a bank will have a file of data about customer accounts;
and so on. The data is filed because it is anticipated that it will be required for
some future purpose. For example, the product structure file will be used to
plan production; the register of electors will be used to send out polling cards;
the customer accounts file will be used to provide the current balances of
accounts. Most organisations will have lots of files and frequently it is necessary
to access more than one file in order to acquire the necessary information. For
example, in order to plan production, not only is the product structure file
needed but also the orders file, the raw materials file, the machine availability
file, and so on.
In this context, data is defined as a collection of numbers or characters that
represent a measurement from the real world. Information is defined as a
meaningful answer to a query. Data processing or information processing,
operations (e.g., handling, merging, sorting, and computing) are performed
upon data in accordance with strictly defined procedures, such as recording
and summarising the financial transactions of a business. In automatic or
electronic data processing the operations are performed by a computer. In
distributed data processing some or all of the operations are performed in
different locations at computer facilities connected by telecommunications
links.
Data processing also consists of a number of stages. Data processing begins
with data entry. By entering data from the checkbook ledger into an accounting
book or computer program in accordance with the chart of accounts it begins
to take on structure. However, raw data provides little information, even when
organised, without being further processed. The financial data that was collected
in the checkbook ledger and entered into an account book has little meaning
until all the figures are processed. Account entries must be summed for each
account category; expenses subtracted from income, profits added to equity,
ratios calculated and so on.
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Introduction to Computer Management Information System (MIS)
Technology
A management information system (MIS) is a system or process that provides
the information necessary to manage an organisation effectively. MIS and the
information it generates are generally considered essential components of
prudent and reasonable business decisions. MIS should have a clearly defined
framework of guidelines, policies or practices, standards, and procedures for
the organisation. These should be followed throughout the institution in the
development, maintenance, and use of all MIS.
The use of computer as an aid to management decision making has always
remained an important objective. The output of a data processing system is
information, which becomes an output to management. And management in
turn has its output decisions for planning and controlling.
MIS is viewed and used at each management level. It also involves those
everyday financial accounting systems that are used to ensure basic control is
maintained over financial recordkeeping activities. Financial accounting
systems and subsystems are just one type of institutional MIS. They are an
important functional element or part of the total MIS structure. However, they
are more narrowly focused on the internal balancing of an institution’s books
to the general ledger and other financial accounting subsystems.
The data is linked together, filtered and summarised to provide management
information. Because MIS supplies decision makers with facts, it supports
and enhances the overall decision-making process. MIS also enhances job
performance throughout an institution. At the most senior levels, it provides
the data and information to help the board and management make strategic
decisions. At other levels, MIS provides the means through which the
institution’s activities are monitored and information is distributed to
management, employees, and customers.
Effective MIS should ensure the appropriate presentation formats and time
frames required by operations and senior management are met. MIS can be
maintained and developed by either manual or automated systems or a
combination of both. It should always be sufficient to meet an institution’s
unique business goals and objectives. The effective deliveries of an institution’s
products and services are supported by the MIS.
Enterprise Resource Planning (ERP)
Enterprise resource planning (ERP) is a business management system that
integrates all facets of the business, including planning, manufacturing, sales,
and marketing. As the ERP methodology has become more popular, software
applications have emerged to help business managers implement ERP in
business activities such as inventory control, order tracking, customer service,
finance and human resources. ERP helps a manufacturer or other business
person to manage the important parts of his/her business, including product
planning, parts purchasing, maintaining inventories, interacting with suppliers,
providing customer service, and tracking orders. ERP can also include
application modules for the finance and human resources aspects of a business.
ERP automates the tasks necessary to perform a business process—such as
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order fulfillment, which involves taking an order from a customer, shipping it
and billing for it. With ERP, when a customer service representative takes an Data Processing
order, he or she has all the necessary information—the customer’s credit rating
and order history, the company’s inventory levels and the shipping dock’s
trucking schedule. Everyone else in the company can view the same information
and has access to the single database that holds the order. When one department
finishes with the order, it is automatically routed via the ERP system to the
next department. To find out where the order is at any point, one needs only to
log into the system. Thus the order process moves swiftly and speedily through
the organisation.

6.4 METHODS OF PROCESSING DATA

Computers are only one of several methods by which to process data. Data can
be processed manually, mechanically, electromechanically, and
electronically.

6.4.1 Manually
Originally, all data was processed manually (by hand). Even prehistoric cave
dwellers kept records by drawing pictures and symbols on cave walls to record
such information as the number of animals they had killed for food. Throughout
history, people have processed data manually. When small amounts of data
are involved, this is often the most efficient method. You are processing data
manually when you take notes in class and when you write a check to pay a
bill.
By 3500 B.C., the Babylonians were using clay tablets to record information
and to improve communications. About the same time, the Egyptians developed
papyrus (a crude type of paper) and the calmus (a sharp pen) for use in recording
information. One of the first calculating devices was the abacus. Prior to this
century, most data processing was done manually and main tools used to process
data were pens, pencils, rulers, journals, and ledgers.

6.4.2 Mechanically
Use of a manual typewriter is an example of processing data mechanically (by
machine). The typewriter, first introduced in the early 1900s, is a mechanical
recording device which increased writing speeds and improved legibility.
Blaise Pascal, a Frenchman, led the way in mechanical processing with his
development in 1642 of the first mechanical adding machine, called Pascal’s
Calculator.
In the early 1800s Charles Babbage, an English inventor and mathematician,
decided to build a machine that could solve mathematical equations. He
designed a model of what he called a Difference Engine on paper. Then he
went on to design the Analytical Engine in 1856, another mechanical machine
capable of performing even more complex mathematical calculations. The
device contained the major elements found in modern digital computers: an
input device, a processing unit, a control unit, a storage unit, and an output
device. Due to these important contributions, Charles Babbage is now
recognised as the “Father of the Computer”. Following World War I,
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customised accounting machines appeared. Most were designed for specific
Introduction to Computer purposes, such as recording retail sales or calculating a payroll, and they even
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allowed the user to combine processing steps.

6.4.3 Electromechanically
Both mechanical and electronic devices are used to process data
electromechanically. Unlike a mechanical device, a truly electronic device
does not have internal moving parts.
Professor Howard Aiken of Harvard University built an electromechanical
machine in 1944. This machine, called the Mark I, contained both mechanical
and electronic parts. Data was stored electronically inside the machine with
the use of electromagnetic relays. Mathematical calculations, however, were
performed by the machine’s internal mechanical counters. This machine was
the largest electromechanical calculator ever built. It used over 3000 electrically
actuated switches to control its operations. Although its operations were not
controlled electronically, Aiken’s machine is often classified as a computer
because its instructions, which were entered by means of a punched paper
tape, could be altered. Many machines used today are electro-mechanical. For
example most computer printers contain both mechanical and electronic parts.

6.4.4 Electronically
A computer is an electronic device that contains no internal moving parts. It
consists electronic circuitry carefully designed to allow data to be processed
by directing the flow of electricity through the circuitry using tiny “on” and
“off” switches.
Even as the Mark I computer was being constructed, work was underway to
introduce electronics into the design of computers. Dr. John Atanasoff, a
professor of physics at lowa State College, developed an electronic machine
to solve certain mathematical equations. This machine was called the Atanasoff-
Berry Computer, or ABC, after Atanasoff and his assistant, Clifford Berry. It
used 45 vacuum tubes for internal logic and capacitors for storage.
In 1946, J. Presper Eckert and John W. Mauchly built the first all-electronic
computer, called the ENIAC (Electronic Numerical Integrator And
Calculator).It was developed as a result of a military need. The ENIAC took
up the wall space in a 20 × 40 foot room and used 18,000 vaccum tubes.
Though, it was fully electronic, the ENIAC had two major shortcomings: it
could store and manipulate only a very limited amount of information, and its
programs were wired on boards. These limitations made it difficult to detect
errors and to change the programs.
In recent years, several technological improvements have resulted in the
development of modern digital computers with tremendous capabilities.
Self Check Exercises
2) List the four methods of data processing.
3) Briefly discuss the primary historical contributions of Pascal, Babbage,
Eckert and Mauchly, and Atanasoff and Berry to data processing.
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Note: i) Write your answers in the space given below. Data Processing

ii) Check your answers with the answers given at the end of this Unit.
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6.5 DEVELOPMENTS IN DATA PROCESSING

Origins of Twentieth Century Data Processing
It has been stated that the electronic computer was made possible by the
technological developments that occurred during World War II. Charles
Babbage’s Analytical Engine (1856) was designed to perform the following
data processing operations:
1) Data was to be input on punched cards
2) Processing was to be accomplished by the ‘mill’ that would ‘grind out’
the arithmetic operations of addition, subtraction, multiplication, and
division. The mill could also change the computational process on the
basis of the sign of computed results.
3) Storage took place in the memory, in which the variable to be operated on
and the result of operations to be kept.
4) Output was to be on punched cards or by printing.
5) Control of operations was to be by means of instructions that were also
punched into cards and entered into the mill in sequence.
Unfortunately, Babbage’s undertaking was not successful, because he had to
work with the technology of his time.
Modern data processing began with the inventions of American engineer,
Herman Hollerith. In 1881 Hollerith began designing a machine to tabulate
census data more efficiently than by traditional hand methods. The U.S. Census
Bureau had taken eight years to complete the 1880 census, and it was feared
that the 1890 census would take even longer.
Hollerith’s great breakthrough was his use of electricity to read, count, and
sort punched cards whose holes represented data gathered by the census-takers.
His machines were used for the 1890 census and accomplished in one year
what would have taken nearly ten years of hand tabulating. Hollerith’s company
later developed into the International Business Machines Corporation, known
as IBM.
Many other technical developments took place in the second half of the
twentieth century which set the stage for the widespread use of electronic digital
computers in business and industry. The contributions of John Von Neumann
were particularly significant. Eckert and Mauchly, in addition to Goldstine 185
Introduction to Computer and von Neumann, were also part of this project. As contrasted with Babbage’s
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analytical engine, which was designed to store only data, von Neumann’s
machine, called the Electronic Discrete Variable Computer, or EDVAC, was
able to store both data and instructions. This feature was important because it
enabled the computer to execute instructions at its internal speed, rather than
having to rely upon much slower processes such as wired boards or punched
cards for entering instructions. The stored program feature is the reason that
we now, properly, refer to modern digital computers as stored program digital
computers. Von Neumann also contributed to the idea of storing both data and
instructions in a binary code that uses only ones and zeros instead of decimal
numbers or alphabetic characters. This simplified computer design because
devices that represented the electronic equivalent of only two possible
conditions, ‘holes’ and ‘no holes’, in punched cards were easier to construct
and more reliable.
Eckert and Mauchly founded their own company in 1946 and began to work
on UNIVAC. UNIVAC I was built in 1949. UNIVAC stands for UNIVersal
Automatic Computer. The first UNIVAC was installed in the Census Bureau
in 1951, and it was used continuously for 10 years. In 1952, IBM introduced
the 701 commercial computer. In rapid succession improved models of the
UNIVAC I and other 700-series machines were introduced. In 1953, IBM
produced the IBM 650 and sold over 1000 of these computers. The IBM 650
used a magnetic drum for storage and was popular with business and science.
The first commercial business computer was developed in the United Kingdom
in 1951, by English Electric for the Joe Lyons catering organisation. This was
known as the ‘Lyons Electronic Office’ - or LEO for short. It was developed
further and used widely during the 1960s and early 1970s.
Early commercial systems were installed exclusively by large organisations.
These could afford to invest the time and capital necessary to purchase hardware,
hire specialist staff to develop the software and work through the consequent
organisational and cultural changes.
At first, individual organisations developed their own software, including data
management utilities, themselves. This fragmented approach led to duplicated
effort and the production of management information needed manual effort.
High hardware costs and relatively slow processing speeds forced developers
to use resources ‘efficiently’. Data storage formats were heavily compacted,
for example. A common example is the removal of the century from dates,
which eventually lead to the ‘millennium bug’.
Data input required intermediate processing via punched paper tape or card
and separate input to computers, usually for overnight processing. Data required
validation in batches. All of this was a repetitive, labour intensive task, removed
from user control and error-prone. Invalid or incorrect data needed correction
and resubmission with consequences for data and account reconciliation.
Data storage was strictly serial on magnetic tape: the use of data storage within
readily accessible memory was not cost-effective.
Results would be presented to users on paper. Enquiries were delayed by
186 whatever turn round was available.
Data Processing Today Data Processing

As with other industrial processes commercial IT has moved in all respects

from a bespoke, craft-based industry where the product was tailored to fit the
customer; to multi-use components taken off the shelf to find the best-fit in
any situation. Mass-production has greatly reduced costs and IT is available to
the smallest company or one-man band - or school-kid.
LEO was hardware tailored for a single client. Today, Intel Pentium and
compatible chips are standard and become parts of other components which
are combined as needed. One individual change of note was the freeing of
computers and removable storage from protected, air-filtered environments.
Microsoft and IBM at various times have been influential enough to impose
order on IT and the resultant standardisations allowed specialist software to
flourish.
Software is now available off the shelf. Apart from Microsoft products such as
Office, or IBM products like Lotus, etc. there are specialist packages for payroll
and personnel management, account maintenance and customer management,
to name a few. These are highly specialised and intricate components of larger
environments, but they rely upon common conventions and interfaces.
Data storage has also standardised. Relational databases are developed by
different suppliers to common formats and conventions. Common file formats
can be shared by large main-frames and desk-top personal computers, allowing
online, realtime input and validation.
In parallel, software development has fragmented. There are still specialist
technicians, but these increasingly use standardised methodologies where
outcomes are predictable and accessible. At the other end of the scale, any
office manager can dabble in spreadsheets or databases and obtain acceptable
results (but there are risks).

6.6 BASIC DATA PROCESSING OPERATIONS

Five basic operations which are characteristic of all data processing systems
are inputting, storing, processing, outputting, and controlling. These are defined
as follows:
1) Inputting: The process of entering data, which are collected facts, into a
data processing system.
2) Storing: Saving data or information so that they are available for initial
or for additional processing.
3) Processing: Performing arithmetic or logical operations on data in order
to convert them into useful information.
4) Outputting: The process of producing useful information, such as a
printed report or visual display.
5) Controlling: Directing the manner and sequence in which all of the above
operations are performed.
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Introduction to Computer 6.6.1 Information Processing Cycle
Technology

Regardless of the method used, all information processing follows the same
basic information processing cycle, shown in Figure 6.4. When using a
computer, data must first be input, or entered, into the computer where it is
then processed into information. After processing, the resulting information
is obtained via an output device, such as a monitor or printer. The information
may also be stored for future use.

Input P

Fig. 6.4: The Information Processing Cycle

Therefore, the basic structure of any computer-based data processing system

can be seen from two angles:
i) It receives inputs, which are processed against files in order to produce
outputs.
ii) It has four basic subsystems concerned with processing transactions,
answering enquiries, maintaining files, and ensuring integrity and security.
Input messages of various kinds are received by the system and processed
against the files to produce results. The processing consists of four main types
of activity:
• Checking the accuracy of the input messages.
• Putting them into the sequence required for matching to the files.
• Matching them to the files in order to change the stored data or to extract
from it.
• Producing appropriate output messages.

6.6.2 Data Processing Activities

Thus Data processing consists of three basic activities: capturing the input
data, manipulating the data, and managing the output results.
1) Capturing the input data: Data must be recorded or captured in some
form before they can be processed. They may first be recorded on source
documents – paper forms designed to accept input data – or they may be
captured by keyboards, automated teller machines, or other direct input
devices that accept input data in a paperless, machine-readable form.
2) Manipulating the data: One or more of the following operations may
then have to be performed on the gathered data:
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 i) Classifying: Organising similar items into groups or classes is called Data Processing
classifying. Classifying is usually accomplished by assigning
predetermined abbreviations or codes to the items being arranged.
The types of codes used are numeric (Postal Zip codes used for
geographic classification), alphabetic and alphanumeric.
ii) Calculating: Arithmetic manipulation of the data is called
calculating, and is a common processing task.
iii) Sorting: Usually, it’s easier to work with data if they are arranged in
a logical sequence. Examples include first to last, biggest to smallest,
oldest to newest. Arranging classified data in such a sequence is called
sorting.
iv) Summarising: Reducing masses of data to a more concise and usable
form that is easier to interpret and analyse is called summarising.
For example representation of data in the form of charts is one of the
many types of computer-generated graphics that are used for this
purpose.
3) Managing the output results: Once data have been captured and
manipulated, one or more of the following operations may be needed:
i) Storing and Retrieving: Retaining data for future reference is storing.
Recovering stored data and/or information is the retrieving activity.
Data may be stored on magnetic disks as well as paper, microfilm,
tapes, optical disks or other storage media. A computer can easily
retrieve data stored on these media.
ii) Communicating and Reproducing: Transferring data from one
location or operation to another, for use or for further processing, is
data communication. This is a process that continues until
information in a usable form reaches the final user. Data may be
communicated from one location to other locations electronically.
And sometimes when it is necessary to copy or duplicate data, the
reproduction activity can be done by machines such as printer,
scanner, etc.
Self Check Exercises
4) List the main steps involved in the information processing cycle.
5) Mention the specific activities involved in the processing phase of the
information processing cycle.
Note: i) Write your answers in the space given below.
ii) Check your answers with the answers given at the end of this Unit.
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189
Introduction to Computer
Technology 6.7 DATA STORAGE HIERARCHY
Data is measured in bits, bytes, fields, records, files, and databases. Bits
represent the smallest amount of data, whereas a database represents the largest
amount of data. The range of data representation is referred to as data hierarchy.
The various components of data hierarchy are:
Bit: A bit is the smallest unit of data that can be represented in primary memory.
A single bit (short for binary digit) is a 0 or a 1, or a true or a false, or for that
matter any two mutually exclusive states.
Byte: A fixed number of consecutive bits that represent a character is called a
byte. Generally, a standard byte is a string of eight bits. Eight-bit bytes are
also known as octets. Eight bits are required to store each digit of a number,
and an arithmetic operation such as addition requires that the numbers be added
serially, binary-coded digit by binary-coded digit.
Field: A byte represents one character of data. A specific number of consecutive
bytes (characters) of data represents a field. A field of data can be any
combination of alphabetic, numeric, alphanumeric or special characters. A
field thus represents specific data. And a field may vary in size.
Record: A record is made up of a specific numbers of related fields of data. A
record can be as little as one field or as large as x number of fields to represent
the data needed for processing.
File: A file is a collection of related records. A file can have one or more
records in it. Usually, a data file has hundreds or thousands of records in it. A
computer program processes a file of data records one record at a time, such as
for an employee payroll.
Database: A collection of related files is a database. Database technology
allows for the pooling of data into one source. Many computer application
programs can share the data in a database.

Database

File(s)
Record(s)

Field(s)
Byte(s)
Character(s):
Alphabetic/
Numeric/Special

Bits

Fig. 6.5 : Data Storage Hierarchy

190 Commercial applications of computers often require flexibility in manipulating

strings of characters. Another term that is commonly used in computer is a
Word. A word may be defined as a unit of information that a computer can Data Processing
process or transfer at a time. A word must be equal to the number of bits
transferred between the central processing unit and the main memory in a
single step or it may be defined as the basic unit of storage of integer data in a
computer. The binary equivalents of decimal numbers had to be placed in
fixed-size storage boxes, called words. Normally, a word may be equal to 8,
16, 32, or 64 bits. The terms like 32 bit computer, 64 bit computers, etc. basically
points to the word size of the computer.

6.8 MODES OF DATA PROCESSING

A number of different modes of data processing can be identified, and it is
important to distinguish between these at an early stage. The distinction is
based on the way in which the computer-based system handles transactions in
terms of number, frequency and location. A transaction is a collection of data
items which describes a particular event or activity of an organisation. Examples
of a transaction would include a sales order, a job sheet, a change to client
information, such as address, a collection of signals from a monitoring device,
and so on. Common factors determining the methods of data processing are
size and type of business, timing aspects, and link between applications.
The major data processing modes are:
• Interactive processing
• Batch processing
• On-line and real-times processing
• Distributed processing
Other terms that are sometimes used are multi-access and time-sharing, which
are not modes of processing but they offer further information about the way
in which transactions are processed.

6.8.1 Interactive Processing

Interactive processing occurs immediately after input data are entered into a
computer system, and the output results are quickly produced. The system
reacts instantly to process the data and produce the output information, and is
then ready to interact further.

6.8.2 Batch Processing

The principle behind batch processing (as its name suggests) is that transactions
are gathered for a time and collected into a group (batch) before they are entered
into a computer system and processed. In batch processing a specific time is
determined at which the batch/batches will be processed and the results
produced. This may be once every few hours, once a day, once a week, monthly,
etc. Having decided the cycle time, the transactions will be gathered during
the cycle and then submitted for processing at the agreed time.
The term batch originated in the days when programmers wrote code, on paper
forms , which was keypunched onto 80-column punch cards or paper tape.
The cards or tape were then passed to the system operator who then scheduled 191
the task and later stage fed the program into the computer. Because a number
Introduction to Computer of tasks were ‘batched’ together rather than put into the system immediately
Technology
the tasks were referred to as “batch jobs”.
An example of batch processing might be taken from a shoe shop in a large
chain. During the day the sales assistants collect the sales document for each
sale made. These are submitted as a batch to an over night computer run,
which updates a stock file and provides the shop on the next day with an
analysis of the previous day’s business. A batch usually consists of similar
transactions (e.g. all sale slips) but it could include different transactions (e.g.
inter shop transfers, deliveries, credit sales etc. as well as sales slips).
Alternatively each type of transaction may be kept in its own batch. The major
benefit of batch processing is controlling the load placed on the computer by
careful scheduling.
Batch processing invariably involves the matching of transactions against a
master file, in one of the following two ways:
i) sequentially or
ii) randomly.
In sequential processing, the transactions are processed in a pre-determined
order (i.e. the order of the records on the master file). This means that batches
have to be sorted into the correct sequence before being submitted to the master
file.
In random processing, the batches contain transactions in random sequence
and the master file is accessed directly via an index or hashing algorithm.
Batch processing is a very common method of using a computer because it is
well suited to most data processing jobs and batches can be controlled as they
pass through the system and it also involves the least expensive configurations
of equipment. Typical applications of batch processing are sales ledger and
invoicing, creditor payments, inventory accounting, financial accounting and
personnel systems(particularly payroll).
But there are several problems with batch processing systems:
i) The entry of data to the computer is rather long winded.
ii) All activities in a batch system are preplanned, and this makes it very
difficult to alter plans to deal with emergencies.
iii) Batch systems tend to be centralised, with the computer-based system
being taken out of the control of the user department.
iv) It is virtually impossible in a batch system to get an absolutely up-to-date
picture of the status of a particular customer or product use.
6.8.3 On-line Processing
There are certain applications where information needs to be up-to-date all the
time. Booking systems (airlines, theatres, hotels) need to know the availability
of seats/accommodation when an enquiry is made, a bank needs to know the
current balance on an account when an withdrawal is made, an order entry
192 system may need to know whether stocks are available at the time of accepting
an order. If information is needed which is current, then the mode of processing Data Processing
required is called ‘real time’.
A real-time system is one in which data is entered into the computer and
processed, and results are returned sufficiently quickly to affect the functioning
of the system at that point in time. Thus in a real-time system the time taken to
complete the processing of a transaction (known as ‘response time’) is of critical
importance. Each transaction is processed as it arises, i.e. when customer arrives
at the counter, when measurement has to be made, or when an event triggers
an action. Thus real-time systems must be able to react very quickly to changes
in demand, and to adjust resource allocation so as to give fast response to
users.
An on-line system is one in which a user is linked directly to the computer for
the purposes of inputting data or receiving output. The on-line system has to
be able to protect the user from getting into difficulties, to provide adequate
back-up and recovery routines when emergencies arise, and to achieve an
acceptable speed of operation.
The justification for on-line, real-time operation is usually based on:
• Earlier availability of information for decision-making and operational
control
• More comprehensive and more accurate data capture;
• User’s ability to control their own files; and
• The advent of new techniques and applications that require interaction.
Not all on-line systems work in real-time mode, but all real-time systems are
on-line. An Example of an on-line system that is not real-time is one in which
data is simply submitted on-line to the computer via visual display units or a
data link but is not processed immediately. The input transactions are stored in
a buffer or written to disk. Then they are processed by a batch program, which
writes the results to an output file that is subsequently transmitted to the terminal
or other remote device.

6.8.4 Multi-access and Time-sharing System

A multi-access system is one which allows several users to interact with the
computer in real-time mode. The access points are linked to the central
computer, usually by switched data transmission lines, and may consist of
various direct entry input devices or even satellite processors. A number of
users have terminals which are directly linked to a central computer. Each
user can use the system interactively. Each user in turn gets a small amount of
processing time. The speed of the processor gives the illusion that the user is
the only one using the computer. This is also called a multi-user system.
There are two main types of multi-access system- dedicated and general
purpose.
In a dedicated system all terminals have access to the same database and use
a restricted set of programs for example airline bookings, banking, stock
exchange, on-line data entry etc. 193
Introduction to Computer In a general purpose system each user has his own files, though he may gain
Technology
access to other user’s files by arrangement. This type of multi-access system
is usually known as a time-sharing system. The user apparently receives a
real-time response and in an efficient system is unaware of the other users.
Most time-sharing systems are operated by educational and research institutions
which have a very varied and individualised workload. Time-sharing can be
very useful to the small user because it offers access to the facilities of a large
computer without the problems and cost of ownership.

6.8.5 Distributed Processing

Distributed processing is the phrase that has been coined to describe the
processing of data throughout an organisation in decentralised, dispersed
processing centres but with some overall co-ordination. There are two types of
systems-hierarchical and horizontal distribution.
In hierarchical distribution system the data is centrally held and controlled by
the main processor and passed down the line to other processors as required.
In a horizontal system, each processor has its own database, though usually
there is central co-ordination by one of the machines.

6.9 ADVANTAGES OF DATA PROCESSING

Although data processing systems that involve computers perform the same
functions as those that do not, the differences between the two are extremely
significant. Computer-oriented data processing systems, often called computer
data processing systems, should not be designed to imitate manual systems.
They should blend the capabilities of both humans and computers. Computer
data processing systems can be designed to take advantage of four capabilities
of computers.
1) Accuracy: Once data have been entered correctly into the computer
component of a data processing system, the need for further manipulation
by humans is eliminated, and the possibility of error is reduced. Also,
computers, when properly programmed, are unlikely to make
computational errors. These are important reasons why we see so many
terminals placed at locations where sales occur, such as fast-foods counters
and department store sales stations. These terminals, called point-of-sale,
or POS, stations, capture data as the transactions that create the data take
place. Of course, computer systems remain vulnerable to the entry by
humans of invalid data.
2) Ease of communications: Data, once captured at a POS stations or entered
by any other means, can be transmitted wherever needed by
communications networks. These may be either earth- or satellite-based
systems. A travel reservations system is an example of a data
communications network. Reservation clerks throughout the world may
make an inquiry about transportation or lodgings and receive an almost
instant response. Another example is an office communications system
that provides executives with access to a reservoir of data, called a
194
corporate database, from their personal microcomputer work stations.
3) Capacity for storage: Computers are able to store vast amounts of data, Data Processing
to organise it, and to retrieve it in ways that are far beyond the capabilities
of humans. The amount of data that can be sorted on devices such as
magnetic disks is constantly increasing. All the while, the cost per character
of data stored is decreasing. Some examples of very large files maintained
by computers are those of banks. Also, databases and data base
management systems will be widely used by corporations in the decades
ahead.
4) Speed: The speed at which computer data processing systems can respond
adds to their value. For example, the travel reservations systems mentioned
above would not be useful if clients had to wait more than a few seconds
for a response. Similarly, the response required of a complex computer-
controlled manufacturing process might be a fraction of a second.
Thus, an important objective in the design of computer data processing systems
is to allow computers to do what they do best and to free humans from routine,
error-prone tasks. The most cost-effective computer data processing system is
the one that does the job effectively and at the least cost. It is not necessarily
the least expensive system. Nor is it necessarily the system with the greatest
data processing capability, if that capability is not needed and adds extra cost.
By using computer in a cost-effective manner, we will be better able to respond
to the challenges and opportunities of our postindustrial, information-dependent
society.

6.10 SUMMARY
In this Unit you have learnt some basic concepts concerning data processing
in computer systems. You studied about the origin of data processing and the
various technical developments that led to the widespread use of digital
computers in business and industry. You also learnt about the various methods
of data processing viz., manual, mechanical, electro-mechanical and
electronical. You also studied about data processing, tracing its history till
date. You also learnt about the basic data processing operations, which are
inputting, storing, processing, outputting, and controlling. Information
processing follows an information processing cycle in which data is input,
processed, stored and output. You studied various data processing activities
like capturing of input data, manipulating the data and managing the output
results. You learnt about data storage hierarchy and various modes of data
processing.

6.11 ANSWERS TO SELF CHECK EXERCISES

1) Information is knowledge that is used to make decisions and is based on
data that has been processed into information. Data are merely unprocessed
facts. In situations where single pieces of data are useful in decision
making, data can actually be information.
2) Data can be processed manually, mechanically, electromechanically, and
electronically.
195
Introduction to Computer 3) Pascal developed the first mechanical calculator, called Pascal’s
Technology
Calculator, in 1642. in the early 1800s, Babbage designed the Difference
Engine, a device capable of solving mathematical equations. Later, he
designed the Analytical Engine, which contained the major elements found
in modern digital computers. For his contributions, Babbage is recognised
as the Father of the Computer. Eckert and Mauchly built the first all-
electronic computer, called ENIAC (Electronic Numerical Integrator and
Calculator). Atanasoff and Berry are credited with developing the concept
underlying the electronic digital computer in their ABC (Atanasoff-Berry
Computer).
4) The main steps involved in the information processing cycle are input,
processing, and output. A fourth step, storage, is included in the cycle
because users often need to store information for future use.
5) Activities included in the processing phase are classifying, sorting,
calculating, summarising, and storing data.

6.12 KEYWORDS
Batch Processing : Computer jobs are grouped together, stored
in the computer and run one at a time.
Bit : Abbreviated from of Binary digit. A
smallest unit of information or storage
represented in the memory as 0 or 1
Byte : Group of 8 bits is normally called a byte.
Generally, a character is represented in one
byte.
Code : A set of rules outlining the way in which
data may be represented; also, rules used
to convert data from one representation to
another. To write a program or routine.
Computer Network : A collection of large and small computers,
data communication equipment and
computer terminals which allow a number
of users to access a number of mainframe
computers.
Data : Raw facts relating to some event.
Database : A stored collection of the data that are
needed by organisations and individuals
to meet their information processing and
retrieval requirements.
Direct Processing : The technique of directly locating,
retrieving, and updating and a file record
without the need to read preceding or
succeeding the records.
196
Interactive Computing : Direct conversation between a user and the Data Processing
computer they are using.

Micro-computer : A small computer consisting of a key-

board, a visual display unit, a computer
memory and a small floppy disc drive. It
can be used only by one person at a time
for program development, computer
graphics, word processing and many other
applications.
Multi-Access System : An operating system which allows several
users to communicate concurrently with a
computer through terminals.
Node : A mini computer which acts as a switch
within a network.
Online : A term describing persons, equipment, or
devices that are in direct communication
with the computer.
Sequential Processing : The technique of retrieving and process-
ing the first record stored in a file sequence,
then the second record in the order, and so
on, until the entire file has been searched.
Software : Software is a general term that refers to
computer programs which are collectively
stored on secondary storage media.
System Software : It is designed to act as an interface between
users or their application programs and the
computer system itself.
Workstation : A mini computer used to send computer
jobs to and receive jobs from a mainframe
computer.

6.13 REFERENCES AND FURTHER READING

Anderson, R.G. (1990). Data Processing. London : Pitman. 2 Vols.
Bingham, J. (1989). Data Processing. Basingstoke : Macmillan.
Fuller, Floyd and Wilkinson, Stan (1988). Computers and Information Pro-
cessing Systems. USA : West Publishing.
Gore, Marvin R. and Stubbe, John W. (1984). Computers and Information
Processing Systems. 2nd ed. Singapore : McGraw-Hill.
Lee, Barry S.(1984). Data Processing Methods. London : Hutchinson.
Sanders, Donald H. (1988). Computers Today. 3rd ed. Singapore : McGraw-
Hill Book.
Rajaraman, V. (1997). Fundamentals of Computers. 2nd ed. New Delhi :
197
Prentice-Hall of India.