DataProcessingIntro.ppt

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Introduction to Data

Processing


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Introduction

l This chapter presents the four stages of the

data processing cycle.

1 Data input

2 Data storage

3 Data processing

4 Information output


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Four Stages of the Data

Processing Cycle

Data

processing

Information

output

Data

input

Data

storage


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Data Input

l The first step in the data processing cycle is

data input.

l During the data input stage, transaction data

are captured and converted to machine-

processible form.

l Traditionally, transaction data has beencaptured on preprintedsourcedocuments.

l What are some source documents?


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Data InputSource Documents

Purchase requisitions

Checks and remittances from customers

Customer orders


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Data Input

l How can data input accuracy and efficiency

be improved?

Have a well-designed computer screen

resembling that of source documents.

Have the system prompt the user to input all

necessary data.

Use scanning devices instead of keying.

Have source data automation like ATMs.


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Forms of Information Output

l Information is presented in three forms:

1 Documents

2 Reports

3 Responses to a query


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l Documentsare records of transactions or other

company data.

l What are some examples of documents?

checks and invoices transmitted to external

parties

purchase requisitions used internally


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l Reports are prepared for both internal and

external users.

l Internal users need reports to control

operational activities, to make decisions,

and design strategies for the business.

l External users need reports to evaluatecompany profitability, or to comply with

regulatory requirements.


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l Some reports, such as financial statements

and sales analyses, are produced on a regular

basis.

l Others are produced on an exception basis

to call attention to unusual conditions.


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l Response to queries:

l To respond to problems and questions that

need rapid action or answer, PCs or terminals

are used to query the system.

l Online forms are often used to display output


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Purpose of Information Output

l External users:

Financial statements are produced to meet

stewardship requirements.

Income tax returns and 10-K filings with

the Securities and Exchange Commission

are produced to comply with legalrequirements.


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Purpose of Information Output

l Internal users:

Budgets, sales forecasts, and projected cash

flow statements are prepared for planning

purposes.

Production and delivery schedules, open

purchase orders, and inventory stock statusreports are prepared to help effectively

manage day-to-day operations.