INTRODUCTION TO DATA PROCESSING

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.

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

(i) Accuracy

(ii) Timeliness

(iii) Completeness

(iv) Relevance

(v) Up to date

(vi) Cost effectiveness

DATA PROCESSING STAGES

(i) Origination

(ii) Preparation/Sorting

(iii) Input

(iv) Processing

(v) Output

(vi) Storage

(vii) Distribution

METHODS OR TECHNIQUE OF DATA PROCESSING

(a) Manual Data Processing

(b) Mechanical 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

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-Commerce
E-Banking e.g Online banking
E-Business
E-Payment
E-Government

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

THEORY

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.