Data processing is term used to describe the series of actions taken to provide useful information from data. Data processing systems, whether manual, mechanical or electronic are used to produce the management information system for running the organization. Data is the term used to describe the basic fact regarding an organization’s activities which are collected and input to a system. The facts are to produce useful output or information. The process of output or information is also known as reporting system. Therefore, the data processing system processes the transactions and processes the reports. Prior to computer (before use of computers), this was done manually. In the age of computer other data processing methods continue to be used to organization where it is fell that electronic data processing (EDP) method. But it is not distracted other data processing methods, may be used in conjunction with computer data processing, for example, to produce input or deal with output.

Definition. Data Processing: The execution of a systematic sequence of operations performed upon data to transform it into information.

Data processing involves a number f transaction and file maintenance in order to provide a database for generating and providing information to various users at the management levels. A transaction is an activity like making a purchase or sales, manufacturing product or recruiting employees. It may be internal in nature and can also involve an external agency. The records to be transacted can be routed through the following ways.

1.    Direct transaction to the action (automatic action).
2.    Report or explain the performance (through the information report).
3.    Communicate the information about the issue (ad hoc support).

The other processing activities are master file maintenance, report generation inquiry and creating support applications. The output of these processing functions provides the base to other management activities. They are routine and are in a programmed form.

A MIS is more comprehensive than data processing with only process transaction and produce reports. Before the advent of computers, data processing was performed manually or with simple machines. MIS encompasses processing in support of a wider range of organizational functions and management process. The system also includes transaction processing. Which illustrated the computer-based data processing?

It is clear from the diagram that the input data has entered into the system and formed as database, and it has again transaction in to output for the decision makers as information.

The important difference between MIS and routine data process are the capability to provide analysis, planning and decision-making support. An MIS orientation means users have access to decision models and methods for querying the data set. Information resources are utilized so as to improve decision making and achieve improved organizations effectiveness.



According to General Motors, meeting that used to last longer than two hours have been trimmed to 20 minits due to the use of computer graphic “in charts you see the relationship vividly displayed” says another users, nothing that the interpretations of columns and rows fo traditional reports are more difficult because they must be done mentally. In past, of course, managers have had in-house artists make up charts and graphs, but the time required to reduce them often make extensive use impartial. it used to take GM8 two years to manually produce maps with dots locating current and potential customers. Now Cadillac’s computer link system allows them to access vehicle registration data. Consequently, they produce 75 maps a year showing locations of their dealers, their competitors, and high income households. This information has let to the relocation of over 100Cadillac dealerships.

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