Data Processing is the process of producing meaningful information from raw data. It describes the series of actions taken to produce useful information by collecting all items of data together and performing operations on them. The aim of data processing is to convert raw data into information.
Table of Contents
Data: Data represent the raw unprocessed input element introduced into a system from which useful information is extracted. Data is used to describe the facts and figure obtained which have not been grouped, related or evaluated in any way.
Information: Information consist of data which have been recorded organized classified and processed into useful and meaningful form. It is the output element of a data processing system.
QUALITIES OF A GOOD INFORMATION
(v) Up to date
(vi) Cost effectiveness
DATA PROCESSING STAGES
METHODS OR TECHNIQUE OF DATA PROCESSING
(a) Manual Data Processing
(b) Mechanical Data Processing
(c) Electronic Data Processing
THE ELECTRONIC COMPUTER
Characteristics of a Computer
- Speed – high speed of operation
- Storage – Large storage volume
iii. Versatility – Can be used to perform wide range of tasks
- Diligence – It can perform similar operations at the same speed and accuracy at all times.
- Automatic – Tasks are performed automatically based on the programme (instructions) given to the computer.
ELEMENTS OR COMPONENTS OF A COMPUTER
- INPUT DEVICES – i. .e. the unit through which data are fed into the computer e.g. keyboards, terminals, optical mark readers optical character readers, magnetic ink character readers.
- CENTRAL PROCESSING UNIT – This is the part of the computer that carry out the computations and calculations. It is made up of
(a) The control unit
(b) The Arithmetic and Logic Unit
(c) The Internal Memory or Storage
- OUTPUT DEVICES – These are used to transmit processed data to the users e.g printer, visual display units, plotters.
- STORAGE DEVICES – These are external storage devices used to hold information that would be required by the users of the computer e.g. diskettes, magnetic tapes, punched cards etc.
APPLICATION OF COMPUTERS IN COMMERCE
Computers are used in finance and commerce for such applications as;
- E-Banking e.g Online banking
GENERAL EVALUATION QUESTIONS
- Explain five circumstances when an insured may not be indemnified
- Explain the following terms (a) insurable risks (b) non insurable risks
- Give five main differences between a retail co-operative society and a public limited company
- Explain five functions of the Central Bank of Nigeria
- Explain five reasons why many small businesses turn into private limited companies
- Mention and explain with diagrams, the stages of data processing.
- State four reasons why some firms still use manual data processing instead of electronic data processing.