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Data Processing population), and administrative by-product

(data collection is a byproduct of an
6 Important Stages in the Data organizations day-to-day operations).
Processing Cycle
2) Preparation is the manipulation of data
Much of data management is essentially into a form suitable for further analysis
about extracting useful information from and processing. Raw data cannot be
data. To do this, data must go through a processed and must be checked for
data mining process to be able to get accuracy. Preparation is about
meaning out of it. There is a wide range of constructing a dataset from one or more
approaches, tools and techniques to do data sources to be used for further
this, and it is important to start with the exploration and processing. Analyzing data
most basic understanding of processing that has not been carefully screened for
data. problems can produce highly misleading
What is Data Processing? results that are heavily dependent on the
Data processing is simply the conversion of quality of data prepared.
raw data to meaningful information
through a process. Data is manipulated to 3) Input is the task where verified data is
produce results that lead to a resolution of coded or converted into machine readable
a problem or improvement of an existing form so that it can be processed through a
situation. Similar to a production process, computer. Data entry is done through the
it follows a cycle where inputs (raw data) use of a keyboard, digitizer, scanner, or
are fed to a process (computer systems, data entry from an existing source. This
software, etc.) to produce output time-consuming process requires speed
(information and insights). and accuracy. Most data need to follow a
Generally, organizations employ computer formal and strict syntax since a great deal
systems to carry out a series of operations of processing power is required to
on the data in order to present, interpret, breakdown the complex data at this stage.
or obtain information. The process includes Due to the costs, many businesses are
activities like data entry, summary, resorting to outsource this stage.
calculation, storage, etc. Useful and
informative output is presented in various 4) Processing is when the data is subjected
appropriate forms such as diagrams, to various means and methods of
reports, graphics, etc. manipulation, the point where a computer
program is being executed, and it contains
Stages of the Data Processing Cycle the program code and its current activity.
The process may be made up of
1) Collection is the first stage of the cycle, multiple threads of execution that
and is very crucial, since the quality of data simultaneously execute instructions,
collected will impact heavily on the output. depending on the operating system. While a
The collection process needs to ensure that computer program is a passive collection of
the data gathered are both defined and instructions, a process is the actual
accurate, so that subsequent decisions execution of those instructions. Many
based on the findings are valid. This stage software programs are available for
provides both the baseline from which to processing large volumes of data within
measure, and a target on what to improve. very short periods.
Some types of data collection
include census (data collection about 5) Output and interpretation is the stage
everything in a group or statistical where processed information is now
population), sample survey (collection transmitted to the user. Output is
method that includes only part of the total presented to users in various report

formats like printed report, audio, video, or Production/operations e.g. manufacturing

on monitor. Output need to be interpreted
so that it can provide meaningful resource planning, manufacturing execution
information that will guide future decisions systems, process control
of the company. Marketing activities e.g. customer
6) Storage is the last stage in the data relationship management, interactive
processing cycle, where data, instruction marketing, sales force automation etc.
and information are held for future use. Human Resource Management e.g.
The importance of this cycle is that it
allows quick access and retrieval of the
compensation analysis, employee skills
processed information, allowing it to be inventory, personnel requirements
passed on to the next stage directly, when forecasting
needed. Every computer uses storage to
Financial activities e.g. cash management,
hold system and application software.
The Data Processing Cycle is a series of credit management, investment
steps carried out to extract information management, capital budgeting
from raw data. Although each step must be
Accounting activities: order processing,
taken in order, the order is cyclic. The
output and storage stage can lead to the inventory control, accounts receivable,
repeat of the data collection stage, resulting accounts payable, payroll, general ledger
in another cycle of data processing. The
cycle provides a view on how the data
travels and transforms from collection to
interpretation, and ultimately, used in The processing cycle
effective business decisions. Two types of processing cycles
- Basic Data Processing cycle and
DATA PROCESSING THE CYCLE, - The Expanded Data Processing cycle

Basic Data Processing cycle - Consists

Definitions of data processing three basic steps, input, processing and
manipulation of data into a more useful output
form Input: Initial data or input data are prepared
Includes; numerical in some convenient form for processing.
calculation, operations (e.g. classification of E.g. computers input data is recorded into
data), transmission of data from one place to input medium such as internal memory,
another cards, disks, flash etc.
Processing: Input data are changed,
usually combined with other information to
Organizations undertake data processing produce data in a more useful form. E.g.
activities to obtain information with which to pay checks may be calculated from the time
control and support the following; cards or a summary of sales for the month
may be calculated from the sales orders.

Output: Results of the preceding Merging: this operation takes two or more
processing step are collected. The output sets of data, all sets having been sorted by
data/result form depends on the use of the same key, and puts them together to form a
data. E.g. pay checks for employee, printed single sorted set of data
summary of monthly sales for management, Calculating: refers to performing numerical
or data to be stored for further processing. calculations on the (numerical) data
Summarising and report writing

Expanded Data Processing Cycle - More

steps; Origination, Distribution, and Storage. -------------------------__________________________
Origination: refers to the processes of
collecting the original data into source INFORMATION SYSTEMS
documents. E.g. graded test papers
Distribution: refers to distribution of the
output. Recordings of the output data are
often called report documents. E.g. class
grade sheets
Storage: crucial step in many data
processing procedures. The processed
results are stored for use as input data in
the future. A unified set of data storage is
called a file which consists of records. A
collection of files forms a database

Data processing operations

Recording: is the transferring of data onto
some form or document. The operation
occurs during origination, and distribution An information system (IS) is any organized
steps, and throughout the processing cycle. system for the collection, organization,
Duplicating: refers to reproducing the data storage and communication of information.
More specifically, it is the study of
onto many forms or documents complementary networks that people and
Verifying: since recording is usually done organizations use to collect, filter, process,
manually, it is important that the recorded create and distribute data.

data be carefully checked for errors. E.g. A computer information system is a system
typed reports are reread for correctness composed of people and computers that
Classifying: refers to separating of data processes or interprets information. The
term is also sometimes used in more
into categories restricted senses to refer to only the
Sorting: is arranging data in a specific order software used to run a computerized

database or to refer to only a computer 4. Procedures: Procedures are the policies

that govern the operation of a computer
Information system is an academic study of system. "Procedures are to people what
systems with a specific reference to software is to hardware" is a common
information and the complementary
analogy that is used to illustrate the role of
networks of hardware and software that
people and organizations use to collect, procedures in a system.
filter, process, create and also distribute 5. People: Every system needs people if it is
data. An emphasis is placed on an
to be useful. Often the most over-looked
Information System having a definitive
Boundary, Users, Processors, Stores, element of the system are the people,
Inputs, Outputs and the aforementioned probably the component that most
communication networks. influence the success or failure of
information systems. This includes "not
The six components that must come together in only the users, but those who operate and
order to produce an information system are: service the computers, those who maintain
the data, and those who support the
1. Hardware: The term hardware refers to
network of computers." <Kroenke, D. M.
machinery. This category includes the
(2015). MIS Essentials. Pearson
computer itself, which is often referred to
as the central processing unit (CPU), and
6. Feedback: it is another component of the
all of its support equipments. Among the
IS, that defines that an IS may be provided
support equipments are input and output
with a feedback (Although this component
devices, storage devices and
isn't necessary to function).
communications devices.
2. Software: The term software refers to Data is the bridge between hardware and people.

computer programs and the manuals (if This means that the data we collect is only data,

any) that support them. Computer until we involve people. At that point, data is now

programs are machine-readable information.

instructions that direct the circuitry within

the hardware parts of the system to
function in ways that produce useful
information from data. Programs are
generally stored on some input / output
medium, often a disk or tape.
3. Data: Data are facts that are used by
programs to produce useful information.
Like programs, data are generally stored in
machine-readable form on disk or tape until
the computer needs them.