AIN2601
FIRST SEMESTER 2018
PART 1: DATA MANAGEMENT AND UTILISATION
Study unit 1: Data and the computerised information system process
Computerised information system (CIS) process.
Data is generated during different activities (a) in the organisation. Organisations continuously collect
and enter (input) (b) the abovementioned data into the CIS, process data (c) and store data and
information (d).
Organisations (and individuals) usually make better informed decisions (f) if they have access to more
data and valuable information.
Input of data
Raw data: Data captured on manual documents as well as data entered in the CIS
which are not yet processed.
Raw data becomes valuable when processed (c) into information (e) and an
organisation then uses this information for decision making (f).
The four characteristics raw data should have before it is captured in the CIS
should be accurate, complete, reliable and verifiable.
It is essential that the raw data captured in the CIS contains all these
characteristics above, because inaccurate data will lead to inaccurate
information and incomplete data will lead to incomplete information, which in
turn will result in ineffective decisions.
Batch Input:
Similar source documents being grouped together (batch) and then entered
in the CIS periodically. It’s used where a huge number of similar source
documents must be captured and up-to-date data and information are only
required on the same frequency as the frequency of data capturing.
Advantage:
Increased productivity and lower hardware costs can be achieved because
the data is captured at one point and data capturing is not dispersed
throughout the organisation.
Disadvantage:
The CIS is not always up to date with the latest data and information.
, Online Input:
Involves data being immediately captured into the CIS at the point where the
activity occurs. Because data is captured directly and immediately, any
corrections to the data must also be made immediately in order for the data
capturing process to be completed.
Advantage:
The data in the CIS is always up to date.
Disadvantage:
Online inputting is more costly because hardware is required to capture the
data at each point where the activity to be captured takes place.
Methods used to process data into information.
Classifying data
Example – Classifying the data according to the source document (Tax
Invoice)
Performing calculations
Example - calculating the VAT amount on a tax invoice
Sorting data
Example - Purchase orders in numerical sequence or the names of
customers in alphabetical order.
Summarising data
Example - adding all the transactions for a specific supplier for a particular
month.
Transforming data
Example - accounting data is transformed into graphical data (graph) or audio
files can be transformed into written text or vice versa.
Processing types
Batch processing
Occurs when the transaction files are updated to the master files periodically.
The main drawback of this method of processing is that the master files are
only up to date once the updating of the transaction files has occurred.
Real-time processing
The immediate update of the transaction files to the master files as the
transaction occurs is called real-time processing.
Advantage: Ensures that the master files are always up to date.
Output/information
(a) Batch output
Occurs when all requests for information are batched together and periodically
extracted from the CIS.
Advantage: Reports are consistent between periods and the extraction of reports can
be over down times, thereby optimising computer resources.
, Disadvantage: Since requests are batched before being extracted, users have to wait
to receive their required outputs.
(b) Interactive output
Occurs when users are directly connected to the CIS and can request certain
information and receive it immediately.
Advantage: Users can immediately receive information for decision making.
Disadvantage: An increase in use of the CIS can make the users experience a “very
slow” CIS response time.
Typical processing systems
(a) Batch input, batch processing and batch output
All the entered batches are updated at the end of each day.
Example – Processing of Claims
(b) Batch input, batch processing and interactive output
The batch source documents contained in the electronic file are imported when
received.
Example –
(c) Online input, batch processing and interactive output
The transaction file containing the different branches’ requests is updated to the
master file every two days.
Example –
(d) Online input, real-time processing and interactive output
The transaction is immediately updated to the master file and the customer receives a
receipt with the transaction details and his or her new updated balance.
Example – ATM
An organisation’s CIS is not limited to one type of processing system. The type used
will be determined by the activity performed.
Storage of data and information
Why are data and information stored?
Data is saved, and information is stored to be used by users. Data and information
must be stored in the CIS in such a way that it can be easily accessed when needed.
(a) Flat file environment
Where files are not related to one another and the users of data and information each
keep their own data and information.
, Study unit 2: The database environment
The database environment Components
- the users of the database,
- database management systems (DBMS) and,
- the physical database, which includes both the hardware it runs on and the data in
the physical database
Advantages and disadvantages of using a database environment
(a) Advantages
- Reduce data redundancy.
- Reduced costs for data entry and data storage.
- Data integrity is maintained and improved.
- Improved data and information security.
- Application software independence.
- Standardisation of data structures, data access, system software and file
formats.
- Improved data access.
(b) Disadvantages
- Start-up and operating costs.
- Database systems are complex to design and use.
- Time-consuming to design a proper database.
- Database or database management software failure will affect all application
software linked to that specific database.
Database users
(a) End-users
Captures data in the database and extract information from the database using
database management system software.
(b) Application programmers
Responsible for creating, maintaining, updating and managing the application and
DBMS software which the end-users use to interact with the physical database.
(c) Database administrator
Responsible for managing and controlling the organisation’s databases
Responsibilities:
- Implement and maintain database management standards and conventions.
- Ensure applications software complies to database management standards and
conventions by establishing programming standards.
- Define the database structures.
- Design and create databases in line with database management standards and
conventions.
- Implement, maintain and evaluate database access policies and security controls.-
- Monitor data and database security and access.
(d) Data administrator
Also called a database analyst, is responsible for managing and controlling the data
in the organisation’s databases.
Responsibilities:
- Manage the integrity of the data in the database by setting and enforcing the data
standards and data definitions to be used in all the organisation’s databases.
FIRST SEMESTER 2018
PART 1: DATA MANAGEMENT AND UTILISATION
Study unit 1: Data and the computerised information system process
Computerised information system (CIS) process.
Data is generated during different activities (a) in the organisation. Organisations continuously collect
and enter (input) (b) the abovementioned data into the CIS, process data (c) and store data and
information (d).
Organisations (and individuals) usually make better informed decisions (f) if they have access to more
data and valuable information.
Input of data
Raw data: Data captured on manual documents as well as data entered in the CIS
which are not yet processed.
Raw data becomes valuable when processed (c) into information (e) and an
organisation then uses this information for decision making (f).
The four characteristics raw data should have before it is captured in the CIS
should be accurate, complete, reliable and verifiable.
It is essential that the raw data captured in the CIS contains all these
characteristics above, because inaccurate data will lead to inaccurate
information and incomplete data will lead to incomplete information, which in
turn will result in ineffective decisions.
Batch Input:
Similar source documents being grouped together (batch) and then entered
in the CIS periodically. It’s used where a huge number of similar source
documents must be captured and up-to-date data and information are only
required on the same frequency as the frequency of data capturing.
Advantage:
Increased productivity and lower hardware costs can be achieved because
the data is captured at one point and data capturing is not dispersed
throughout the organisation.
Disadvantage:
The CIS is not always up to date with the latest data and information.
, Online Input:
Involves data being immediately captured into the CIS at the point where the
activity occurs. Because data is captured directly and immediately, any
corrections to the data must also be made immediately in order for the data
capturing process to be completed.
Advantage:
The data in the CIS is always up to date.
Disadvantage:
Online inputting is more costly because hardware is required to capture the
data at each point where the activity to be captured takes place.
Methods used to process data into information.
Classifying data
Example – Classifying the data according to the source document (Tax
Invoice)
Performing calculations
Example - calculating the VAT amount on a tax invoice
Sorting data
Example - Purchase orders in numerical sequence or the names of
customers in alphabetical order.
Summarising data
Example - adding all the transactions for a specific supplier for a particular
month.
Transforming data
Example - accounting data is transformed into graphical data (graph) or audio
files can be transformed into written text or vice versa.
Processing types
Batch processing
Occurs when the transaction files are updated to the master files periodically.
The main drawback of this method of processing is that the master files are
only up to date once the updating of the transaction files has occurred.
Real-time processing
The immediate update of the transaction files to the master files as the
transaction occurs is called real-time processing.
Advantage: Ensures that the master files are always up to date.
Output/information
(a) Batch output
Occurs when all requests for information are batched together and periodically
extracted from the CIS.
Advantage: Reports are consistent between periods and the extraction of reports can
be over down times, thereby optimising computer resources.
, Disadvantage: Since requests are batched before being extracted, users have to wait
to receive their required outputs.
(b) Interactive output
Occurs when users are directly connected to the CIS and can request certain
information and receive it immediately.
Advantage: Users can immediately receive information for decision making.
Disadvantage: An increase in use of the CIS can make the users experience a “very
slow” CIS response time.
Typical processing systems
(a) Batch input, batch processing and batch output
All the entered batches are updated at the end of each day.
Example – Processing of Claims
(b) Batch input, batch processing and interactive output
The batch source documents contained in the electronic file are imported when
received.
Example –
(c) Online input, batch processing and interactive output
The transaction file containing the different branches’ requests is updated to the
master file every two days.
Example –
(d) Online input, real-time processing and interactive output
The transaction is immediately updated to the master file and the customer receives a
receipt with the transaction details and his or her new updated balance.
Example – ATM
An organisation’s CIS is not limited to one type of processing system. The type used
will be determined by the activity performed.
Storage of data and information
Why are data and information stored?
Data is saved, and information is stored to be used by users. Data and information
must be stored in the CIS in such a way that it can be easily accessed when needed.
(a) Flat file environment
Where files are not related to one another and the users of data and information each
keep their own data and information.
, Study unit 2: The database environment
The database environment Components
- the users of the database,
- database management systems (DBMS) and,
- the physical database, which includes both the hardware it runs on and the data in
the physical database
Advantages and disadvantages of using a database environment
(a) Advantages
- Reduce data redundancy.
- Reduced costs for data entry and data storage.
- Data integrity is maintained and improved.
- Improved data and information security.
- Application software independence.
- Standardisation of data structures, data access, system software and file
formats.
- Improved data access.
(b) Disadvantages
- Start-up and operating costs.
- Database systems are complex to design and use.
- Time-consuming to design a proper database.
- Database or database management software failure will affect all application
software linked to that specific database.
Database users
(a) End-users
Captures data in the database and extract information from the database using
database management system software.
(b) Application programmers
Responsible for creating, maintaining, updating and managing the application and
DBMS software which the end-users use to interact with the physical database.
(c) Database administrator
Responsible for managing and controlling the organisation’s databases
Responsibilities:
- Implement and maintain database management standards and conventions.
- Ensure applications software complies to database management standards and
conventions by establishing programming standards.
- Define the database structures.
- Design and create databases in line with database management standards and
conventions.
- Implement, maintain and evaluate database access policies and security controls.-
- Monitor data and database security and access.
(d) Data administrator
Also called a database analyst, is responsible for managing and controlling the data
in the organisation’s databases.
Responsibilities:
- Manage the integrity of the data in the database by setting and enforcing the data
standards and data definitions to be used in all the organisation’s databases.
