Chapter

5
Data Processing Concepts

INTRODUCTION

Each organisation, regardless of its size or purpose, generates data to keep a record of events and
transactions that take place within the business. Generating and organising this data in a useful way is
called data processing. In this lesson, we shall discuss about various terms such as data, information,
data processing and data processing system.

Data
The word “data” is the plural of datum, which means fact, observation, assumption or occurrence.
More precisely, data are representations of facts pertaining to people, things, ideas and events. Data
are represented by symbols such as letters of the alphabets, numerals or other special symbols.

Data Processing
Data processing is the act of handling or manipulating data in some fashion. Regardless of the activities
involved in it, processing tries to assign meaning to data. Thus, the ultimate goal of processing is
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to transform data into information. Data processing is the process through which facts and figures
are collected, assigned meaning, communicated to others and retained for future use. Hence we can
define data processing as a series of actions or operations that converts data into useful information.
We use the term ‘data processing system’ to include the resources that are used to accomplish the
processing of data.

Information
Information, thus can be defined as “data that has been transformed into a meaningful and useful
form for specific purposes”. In some cases data may not require any processing before constituting
information. However, generally, data is not useful unless it is subjected to a process through which it is
manipulated and organised, its contents analyzed and evaluated. Only then data becomes information.

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 5.2 Database Management System

There is no hard and fast rule for determining when data becomes information. A set of letters
and numbers may be meaningful to one person, but may have no meaning to another. Information
is identified and defined by its users. For example, when you purchase something in a departmental
store, a number of data items are put together, such as your name, address articles you bought, the
number of items purchased, the price, the tax and the amount you paid. Separately, these are all data
items but if you put these items together, they represent information about a business transaction.

Data Processing Activities

As discussed above, data processing consists of those activities which are necessary to transform
data into information. Man has in course of time devised certain tools to help him in processing
data. These include manual tools such as pencil and paper, mechanical tools such as filing cabinets,
electromechanical tools such as adding machines and typewriters, and electronic tools such as
calculators and computers. Many people immediately associate data processing with computers.
As stated above, a computer is not the only tool used for data processing, it can be done without
computers also. However, computers have outperformed people for certain tasks. There are some
other tasks for which computer is a poor substitute for human skill and intelligence.
Regardless to the type of equipment used, various functions and activities which need to be
performed for data processing can be grouped under five basic categories as shown in Fig. 5.1.

Collection Conversion Manipulation Storage Communication

Originating Coding Sorting Storing and
Measuring Classifying Calculating Retrieving Reproduction
Recording Verifying Summarizing
Comparing Transforming Comparing

Fig. 5.1 Data processing activities

We will now describe each of these activities:

Department 5 Employee time sheet for week ending 21/07/2001

Hours Worked
Emp. No. Name Mon Tues Wed Thurs Fri Total Horse
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110 Hariom 8 8 8 8 8 40
150 Denesh 8 8 8 8 6 38
160 Rajesh 8 4 8 8 8 36
170 Pankaj 8 6 8 5 8 35

Fig. 5.2 The source document for a payroll application is the weekly time sheet

(a) Collection
Data originates in the form of events transaction or some observations. This data is then recorded
in some usable form. Data may be initially recorded on paper source documents 2.2 and then
converted into a machine usable form for processing. Alternatively, they may be recorded by
a direct input device in a paperless, machine-readable form. Data collection is also termed as
data capture.

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 Data Processing Concepts 5.3

(b) Conversion
Once the data is collected, it is converted from its source documents to a form that is more suitable
for processing. The data is first codified by assigning identification codes. A code comprises of
numbers, letters, special characters, or a combination of these. For example, an employee may
be allotted a code as 52-53-162, his category as A class, etc. It is useful to codify data, when
data requires classification. To classify means to categorize, i.e., data with similar characteristics
are placed in similar categories or groups. For example, one may like to arrange accounts data
according to account number or date. Hence a balance sheet can easily be prepared.
After classification of data, it is verified or checked to ensure the accuracy before processing
starts. After verification, the data is transcribed from one data medium to another. For example,
in case data processing is done using a computer, the data may be transformed from source
documents to machine sensible form using magnetic tape or a disk.
(c) Manipulation
Once data is collected and converted, it is ready for the manipulation function which converts
data into information. Manipulation consists of following activities:
Sorting
It involves the arrangement of data items in a desired sequence. Usually, it is easier to work
with data if it is arranged in a logical sequence. Most often, the data are arranged in alphabetical
sequence. Sometimes sorting itself will transform data into information. For example, a simple act
of sorting the names in alphabetical order gives meaning to a telephone directory. The directory
will be practically worthless without sorting. Business data processing extensively utilises sorting
technique. Virtually all the records in business files are maintained in some logical sequence.
Numeric sorting is common in computer-based processing systems because it is usually faster
than alphabetical sorting.
Calculating
Arithmetic manipulation of data is called calculating. Items of recorded data can be added to one
another, subtracted, divided or multiplied to create new data as shown in Fig. 5.3. Calculation
is an integral part of data processing. For example, in calculating an employee’s pay, the hours
worked multiplied by the hourly wage rate gives the gross pay. Based on total earning, income-
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tax deductions are computed and subtracted from gross-pay to arrive at net pay.
Summarizing
To summarize is to condense or reduce masses of data to a more usable and concise form as
shown in Fig. 5.4. For example, you may summarize a lecture attended in a class by writing
small notes in one or two pages. When the data involved is numbers, you summarize by counting
or accumulating the totals of the data in a classification or by selecting strategic data from the
mass of data being processed. For example, the summarizing activity may provide a general
manager with sales-totals by major product line, the sales manager with sales totals by individual
salesman as well as by the product line and a salesman with sales data by customer as well as
by product line.

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 5.4 Database Management System

Weekly payroll summary report 07/07/2005

Dept. Employee Number Name Hours Worked Pay Rate Gross Wages
2 170 Pankaj 34 10.00 140.00
175 Rekha 32 9.00 288.00
158 Param 20 5.00 100.00
160 Rajesh 36 8.00 288.00
165 Sanju 45 9.00 405.00
159 Savini 25 3.00 75.00
Department 2 Total 192 1496.00
4 110 Hari Om 33 7.75 255.75
115 VimaL 40 9.25 370.00
Department 4 Total 73 625.75
8 150 Dinesh 38 7.00 266.00
155 Upma 40 9.45 390.00
156 Arunima 32 8.50 272.00
157 Ritwik 40 8.00 320.00
Department 8 Total 150 1,248.00
Company Total 415 3,369.75

Fig. 5.3 Weekly payroll summary

  Department Payroll Summary for Week of 07-07-2005

Department Hours Gross Wages
2 192 1,496.00
4 73 625.75
8 150 1,248.00
Company Total 415 3.369.75

Fig. 5.4 Department payroll summary

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Comparing
To compare data is to perform an evaluation in relation to some known measure. For example,
business managers compare data to discover how well their compaines are doing. They many
compare current sales figures with those for last year to analyze the performance of the company
in the current month.
(d) Managing the Output Results
Once data has been captured and manipulated following activities may be carried out:
Storing
To store is to hold data for continued or later use. Storage is essential for any organised method
of processing and re-using data. The storage mechanisms for data processing systems are file

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 Data Processing Concepts 5.5

cabinets in a manual system, and electronic devices such as magnetic disks/magnetic tapes in
case of computer based system. The storing activity involves storing data and information in
organised manner in order to facilitate the retrieval activity. Of course, data should be stored
only if the value of having them in future exceeds the storage cost.
Retrieving
To retrieve means to recover or find again the stored data or information. Retrieval techniques
use data storage devices. Thus data, whether in file cabinets or in computers can be recalled for
further processing. Retrieval and comparison of old data gives meaning to current information.
(e) Communication
Communication is the process of sharing information. Unless the information is made available
to the users who need it, it is worthless. Thus, communication involves the transfer of data and
information produced by the data processing system to the prospective users of such information
or to another data processing system. As a result, reports and documents are prepared and
delivered to the users. In electronic data processing, results are communicated through display
units or terminals.
(f) Reproduction
To reproduce is to copy or duplicate data or information. This reproduction activity may be
done by hand or by machine.

The Data Processing Cycle

The data processing activities described above are common to all data processing systems from
manual to electronic systems. These activities can be grouped in four functional categories, viz., data
input, data processing, data output and storage, constituting what is known as a data processing cycle.
(i) Input
The term input refers to the activities required to record data and to make it available for
processing. The input can also include the steps necessary to check, verify and validate data
contents.
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Fig. 5.5 Data processing cycle

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 5.6 Database Management System

(ii) Processing
The term processing denotes the actual data manipulation techniques such as classifying, sorting,
calculating, summarizing, comparing, etc., that convert data into information.
(iii) Output
It is a communication function which transmits the information, generated after processing of
data, to persons who need the information. Sometimes output also includes decoding activity
which converts the electronically generated information into human-readable form.
(iv) Storage
It involves the filing of data and information for future use.

Computer Processing Operations

A computer can perform only the following four operations which enable computers to carry out the
various data processing activities such as:
(a) Input/Output operations
A computer can accept data (input) from and supply processed data (output) to a wide range
of input/output devices. These devices such as keyboards, display screens, and printers make
human-machine communication possible.
(b) Calculation and text manipulation Operations
Computer circuits perform calculations on numbers. They are also capable of manipulating
numerics and other symbols used in text with equal efficiency.
(c) Logic/Comparison Operations
A computer also possesses the ability to perform logic operations. For example, if we compare
two items represented by the symbols A and B, there are only three possible outcomes.
A is less than B(A < B); A is equal to B(A = B): or A is greater than B(A > B). A computer can
perform such comparisons and the, depending on the result, follow a predetermined path to
complete its work. This ability to compare is an important property of computers.
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(d) Storage and Retrieval Operations

Both data and program instructions are stored internally in a computer. Once they are stored in
the internal memory, they can be called up quickly or retrieved, for further use.

Data Processing System

The activity of data processing can be viewed as a “system”. According to James O’brien a system
can be defined as “a group of interrelated components that seeks the attainment of a common goal by
accepting inputs and producing outputs in an organised process”. For example, a production system
accepts raw material as input and produces finished goods as output. Similarly, a data processing
system can be viewed as a system that uses data as input and processes this data to produce information
as output.

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 Data Processing Concepts 5.7

Input → Processing → Output

Fig. 5.6 Data processing system

There are many kinds of data processing systems. A manual data processing system is one that
utilizes tools like pens, and filing cabinets. A mechanical data processing system uses devices such
as typewriters, calculating machines and book-keeping machines. Finally, electronic data processing
uses computers to automatically process data.

Data Organisation
Having discussed the Data Processing Cycle (also called Information Processing Cycle) and the
components of a computer, we will now describe how data is organised before processing on a
computer. Data can be arranged in a variety of ways, but a hierarchical approach to organisation is
generally recommended.

Data Item
A data item is the smallest unit of information stored in computer file. It is a single element used to
represent a fact such as an employee’s name, item price, etc. In a payroll application, the employee
number 170 is a data item. PANKAJ the name is a data item.

Field
Data items are physically arranged as fields in a computer file. Their length may be fixed or variable.
Since all individuals have 3 digit employee numbers, a 3-digit field is required to store the particular
data.
Hence, it is a fixed field. In contrast, since customer’s name vary considerably from one customer
to another, a variable amount of space must be available to store this element. This can be called as
variable field.

Record
A record is a collection of related data items or fields. Each record normally corresponds to a specific
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unit of information. For example, various fields in the record, illustrated in Fig. 5.6 are employee
number, employee’s
name, basic salary and
house rent allowance.
This is the data used
to produce the payroll
register report. The first
record contains all the
data concerning the
employee PANKAJ. The
second record contains
all the data concerning Fig. 5.6 Data record

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 5.8 Database Management System

the employee REKHA. Each subsequent record contains all the data for a given employee. It can be
seen how each related item is grouped together to form a record.

File
The collection of records is called a file. A file contains all the related records for an application.
Therefore, the payroll file shown in Fig. 5.7 contains all records required to produce the payroll
register report. Files are stored on some medium, such as floppy disk, magnetic tape or magnetic disk.

Database
The collection of related files is called a database. A database contains all the related files for a
particular application.

Variable and Fixed Length Records

Records can be of fixed or variable length as depicted in Fig. 5.7.

Fig. 5.7 Fixed and variable length records

Fixed Length Records

In this case, all the records in a file have the same number of bytes. Such a file is called a flat file.
If all the records are expected to contain essentially the same quantity of data, then fixed length
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records are used.

Variable Length Records

In this case, records vary in length. Use of variable length records conserves storage space when the
quantity of information, of various records in a file, differs significantly.

Logical Versus Physical Record

A logical record contains all the data related to a single entity. It may be a payroll record for an
employee or a record of marks secured by a student in a particular examination. A physical record
refers to a record whose data fields are stored physically next to one another. It is also the amount

Bhatia, Ashima Bhatnagar, and Ashima Bhatnagar Bhatia. Database Management System, Alpha Science International, 2014. ProQuest Ebook Central,
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 Data Processing Concepts 5.9

of data that is treated as a single unit by the input-output device. Portions of the same logical record
may be located in different physical records or several logical records may be located in one physical
record. For example, in case of magnetic tape, number of logical records are stored in the form of a
block to increase the data transfer speed and this block is referred to as a physical record as shown
in Fig. 5.8.

Fig. 5.8 Physical and logical record

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Bhatia, Ashima Bhatnagar, and Ashima Bhatnagar Bhatia. Database Management System, Alpha Science International, 2014. ProQuest Ebook Central,
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Copyright © 2014. Alpha Science International. All rights reserved.

Bhatia, Ashima Bhatnagar, and Ashima Bhatnagar Bhatia. Database Management System, Alpha Science International, 2014. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/georgetown/detail.action?docID=5218421.
Created from georgetown on 2023-02-21 16:28:13.