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Data processing

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Data Processing (1.5)

Information Technology 9626

Batch, Online, and Real-Time Processing Methods

Interactive Revision Notes with Self-Testing

What is Data Processing?
Batch Processing
Online Processing
Real-Time Processing
Comparing Processing Methods
Summary and Review

1. What is Data Processing?

Learning Objectives:

Understand what data processing is and why it's important
Learn the three main methods of processing data
Understand the difference between transactions and processing
Know the characteristics of each processing method

Definition of Data Processing

Data Processing: Data processing is the collection, organization, and transformation of raw data into meaningful information that can be used by an organization. It involves taking input data, processing it using algorithms and rules, and producing output information.

In the IT syllabus, there are three main methods of processing data that you must know:

The Three Data Processing Methods:

Batch Processing: Collect data over time, process in one large batch
Online Processing: Process transactions almost immediately (slight delay)
Real-Time Processing: Process data instantly with no delay

What is a Transaction?

In IT, a transaction is not just about buying or selling goods. It can mean:

Transaction Types:

Adding data to a database (INSERT)
Deleting data from a database (DELETE)
Changing/updating existing data (CHANGE)
Financial transfers (money movements)
Sales records

Quick Question 1

What is the difference between data and information in the context of data processing?

2. Batch Processing

What is Batch Processing?

Batch Processing: A method where transactions are collected over a period of time and then processed all together at a later time, usually when computer resources are not being used (e.g., overnight).

Batch processing is used when:

When to Use Batch Processing:

Large volumes of data need to be processed
Processing can be delayed (it's not urgent)
Similar transactions need to be grouped together
Cost-saving is important (process during off-peak hours)

Real-World Examples of Batch Processing

Example 1: Payroll System

Scenario: A company pays employees weekly.

Process:

Throughout the week, employee hours are recorded in a transaction file
At the end of the week (e.g., Friday night), all hours are processed at once
The system calculates wages using the master file (hourly rates)
Updated payroll is produced and printed

Why Batch? Payroll only needs weekly processing. It saves money to process overnight when computers are idle.

Example 2: Utility Bills (Water/Gas/Electricity)

Scenario: Meter readings collected monthly.

Process:

Meter readings are collected in a transaction file
Customer data (previous reading, account details) is in the master file
At month-end, the system processes all readings together

Why Batch?

Master Files and Transaction Files

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Also in the full note

3. Online Processing
4. Real-Time Processing
5. Comparing Processing Methods
6. Summary and Review
Data Processing: Complete Overview
Master These Data Processing Concepts Checklist
🎯 Exam Success Tips for Data Processing
Advantages of Batch Processing

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