
Chapter
2.
Data Processing and
the
IBM
5110 Computing System
Though data processing may imply
the
presence
of
a computer,
the
term itself
describes
an
activity
that
is as old
as
commerce: performing a series
of
planned actions (processing) upon information (data)
to
achieve a desired
result. The result may be
new
information
or
the original information expressed
in a more appropriate form. For example, adding a list
of
prices
to
discover the
total cost is data processing. Preparing
an
invoice
from
a telephoned order is
also data processing.
Commercial data processing has changed
with
the demands
of
doing business.
As
long as
the
number
of
transactions
of
a business remains small, and as
long as the transactions are
of
little variety, one clerk can prepare all invoices,
keep
the
accounts receivable up
to
date, control inventory levels, and
so
on.
As
a business grows, however, its transactions become more numerous and
complex, and management often requires more information more readily in
order
to
make necessary business decisions. In
other
words, data processing
requirements have
grown
with
business. Data processing methods have had
to
change as well.
ELECTRONIC
DATA
PROCESSING
The
most
recent innovations
in
data processing methods are incorporated in
electronic data processing systems (computers). An electronic data processing
system is
an
organization
of
equipment and procedures
that
can process huge
amounts
of
data at electronic speeds. The evolution
of
such systems can be
traced
from
manual data processing methods, through
the
introduction
of
mechanical bookkeeping machines and punched card devices,
to
the computer.
Today
the
terms
electronic data processing, data processing, and computer data
processing are often used interchangeably.
INPUT, PROCESSING,
AND
OUTPUT
Though modern data processing systems have become very sophisticated,
processing data by computer and recording daily transactions by hand still
share
the
three elements fundamental
to
all data processing: input, processing,
and output.
• Input. Input is data
to
be operated on (processed).
• Processing. Processing is the handling
of
input according
to
specific
instructions
or
rules.
• Output.
Output
is the result
of
processing the input.
Data Processing and the
IBM
5110
Computing
System 7