SOFTWARE

Software is a set of computer program instructions that directs the operation of the
hardware called software. A set of instruction for a specific task is termed a routine. A
complete set of instruction to execute a related set of task is a program.

Computer software is classified into two major types of programs

I. SYSTEM SOFTWARE:- A computer is highly complex machine and the role of the
computer software is to make it run. We know that system software refers to all the
programs which make the computer work easy and are commonly supplied by the
manufacturers or computer vendor along with the hardware. It consists of number of
specialized programs that help the computer to co-ordinate and control all activities
relating to computer operations. System software can be grouped into three major
functional categories-
 System Management Programs- it manages the hardware, software and
data resources of the computer system during its extension of the various
information processing jobs of users. Major system management programs
are operating system, database management system and telecommunication
monitors.
 System Support Programs:- programs that support the operations
management and the user of a computer system by providing a variety of
system services. Major support programs are system utilities, performance
monitors and security monitors.
 System Development Programs:- Programs that help user to develop
information system programs and procedures and prepare user programs for
computer processing. Major development programs are language translators,
programming tools and case packages.

II. APPLICATION SOFTWARE:- It refers to the program which helps the computer to
work effectively for specific applications. Application software, thus, refers to the
program of instructions, tailored to cause the hardware to function in a desired way
for processing an application, unique to the user. Application software therefore is
also often called user software.
 General Purpose Program:- General applications programs are programs that
perform common information processing job for end users.
Ex:- Word processing, spreadsheet , data base management programs, integrated
packages and graph programs are popular with micro-computer uses for education,
business, scientific and many other purposes.
 Application Specific Program- Thousand of application software packages are
available to support specific application of end users, major categories of such
application specific program are as follow-
 Business application program:- it is related to the business function or industry’s
requirements, examples of such business function and this corresponding application
are accounting, marketing, finance, manufacturing, operation management.
 Scientific application program:- Programs that perform information processing
task for natural, physical, social and behavioral science and for mathematics,
 engineering and all areas involved in scientific research, experiment and
development.
 Other application programs:- There are so many application area of computer
such as computer application in education, entertainment, music, art, law
enforcement, medicines and so on.

COMPUTER DATA PROCESSING AND

REPRESENTATION
Data
The word data is derived from Latin language. Data is any collection of facts
of figures. The data is the raw material to be processed by a computer.
Example
Names of students, marks obtained in the examination, designation of
employees, addresses, quantity, rate, sales figures or anything that is input
to the computer is data. Even pictures, photographs, drawings, charts and
maps can be treated as data. Computer processes the data and produces the
output or result

Data Processing:
» It is a process of restructuring or reordering of data by people or machines to
increase their usefulness and value to the user.
» Data processing can be done in several ways. In olden days it was performed
manually with the help of simple tools such as paper, pencil and filing cabinets.

» Afterwards data processing was done electro-mechanically with the help of unit
record machines.

» Now it is done electronically with the help of a computer. With the help of
computers and peripheral devices, sorting, classifying, summarizing and other
similar activities can be performed at a very high speed.

Steps in Data Processing:

1. Preparation of source documents: The first step is to collect relevant facts
and figures and to record them on source documents. For e.g. in a population
survey - name, address, age, sex, occupation, etc. are first recorded on survey
sheets or some other documents.
2. Recording / Input Data: Once data is given as input to a data processing
system. The method of giving input will depend upon input media and devices.
3. Processing of data: Here, user may classify or sort the given data. For
example, in a population survey, we can classify people on the basis of occupation
or on the basis of age. We may sort the data in alphabetical order or in any other
order. In all data processing, systems following fundamental operations are
performed:
a. Classifying: It involves grouping of like items (=similar items) or transactions.
Data are generally classified according to alphabetic or numeric code.
b. Sorting: Sorting means arrangement of data or transactions in ascending or
descending order. Sorting may be done on numeric or alphabetic data. For example,
Indian States may be arranged in the descending order of population or on the basis
of name.
c. Calculating: It includes adding, subtracting, multiplying or dividing data to
produce useful results. For example – computation of interest on amount etc.
d. Summarizing: It involves consolidating of data, emphasising main points.
Generally, it involves finding out totals, calculating percentages etc.
4. Information Output (Reporting): The summarised data becomes information
and it is presented to the management in the form of reports. Reporting is the final
step of all data processing activities. For e.g. financial statements. Information
should be understandable easily and quickly.
5. Data Storage: In most of the cases, the results of processing are retained for
future use. For example, it may be necessary to compare the latest figures
with previous figures. That is why data processing system requires a
considerable amount of secondary storage space.

Data Access methods

There are 2 principal ways to access data – Direct Access and Sequential Access.
Sequential Access:
» Sequential Access refers to the method in which records are accessed in a
sequence i.e. in the order in which they are stored. If a particular record is required
to be accessed, all previous records should be passed.
» Under sequential access method, all the records are kept in sequence either in
ascending order or in descending order on the basis of key field.
For E.g..: Magnetic tape devices.
Direct Access:
» In Direct access method (or Random Access Method), access of data is
independent of the storage sequence. Individual records can be accessed at
random, in no particular order or sequence.
» Under this method, any record can be accessed at random without passing
through intervening records.

For E.g..: Magnetic disk, Optical disk, etc.

Types of Data Processing

1. Manual Data Processing: This method of data processing involves
human intervention. The manual process of data entry implies many opportunities
for errors, such as delays in data capture, as every single data field has to be keyed
in manually, a high amount of operator misprints or typos, high labor costs from the
amount of manual labor required. Manual processing also implies higher labor
expenses in regards to spending for equipment and supplies, rent, etc.

2. Electronic data processing: EDP (electronic data processing) is the

processing of data by a computer and its programs in an environment involving
electronic communication. EDP evolved from "DP" (data processing), a term that
was created when most computing input was physically put into the computer in
punched card form or in ATM cards form and output as punched cards or paper
reports.

3. Real time processing: In a real time processing, there is a continual input,

process and output of data. Data has to be processed in a small stipulated time
period (real time), otherwise it will create problems for the system.
For example, when a bank customer withdraws a sum of money from his or her
account it is vital that the transaction be processed and the account balance
updated as soon as possible, allowing both the bank and customer to keep track of
funds.
4. Batch processing: In a batch processing group of transactions collected over
a period of time is collected, entered, processed and then the batch results are
produced. Batch processing requires separate programs for input, process and
output. It is an efficient way of processing high volume of data.
For example: Payroll system, Examination system and billing system.
5. Distributed processing: Distributed data processing system is a network of
several computers in remote systems, each of which is linked to a single host
computer. The larger, central computer maintains the firm’s master database and
system log. Each system is a fully independent computer that maintains its own
database in addition to communication with the master computer. These individual
components are tied together through a high speed communication network.
Data storage hierarchy
Data processing deals with operations on data. For convenience system designers
define these operations on different levels of aggregated data. These levels form
the data storage hierarchy of data processing.
1. Bit: Smallest item of data is a single binary digit, either a 0 or 1.
2. Character (byte): A character is combination of multiple related characters
(bytes).
3. Field: Afield is combination of multiple related characters.
4. Record: A record is a combination of multiple related fields.
5. File: A file is a combination of multiple related records.
6. Database: A database is an integration of multiple related files.
 FILE MANAGEMENT SYSTEM
 A fundamental task in any AIS is to process transactions affecting the organization
 Transaction processing systems(Ss) involve three stages:
o Data entry
o Data and file processing
o Output preparation
Benefits of Understanding Transaction Processing Systems
 Recognize limitations in currently installed Transaction Processing Systems such as:
o inadequate data controls
o inefficient processing
o out-of-date files
o stored data that cannot be accessed quickly
o data that is poorly classified and coded
 Recommend new or improved processing approaches and storage methods
Data Entry
 Most transactions are initiated by business events triggered by various agents or by
instructions within a computer program
 Other transactions are initiated by the passage of time, e.g., interest accruals
 Computer-based systems employ an off-line or on-line approach to data entry
Off-line Data Entry
 Off-line refers to input devices not directly connected to the computer. Examples are
key-to-tape, key-to-disk, and OCR readers
 Data must be first captured on source documents and similar transactions are batched
together
 Batched transactions are transcribed into machine-readable form using an off-line device
 Turnaround documents may be used as direct input into a system
On-line Data Input
 On-line refers to devices that are directly and continuously connected to a computer system
 In on-line data entry, transaction data are entered into the computer directly as they occur
 Characteristics of on-line data entry may include:
o nonexistence of source documents (telephones, face-to-face conversations)
o input of data using source data automation (scanners at POS terminals)
o origination of data by parties external to the firm (ATM machines, telephone touch-tone
based transactions)
o capture of data at remote sites (remote job entry or remote batch processing)
Note: Double click above ppt

Files have three important characteristics

1. Whether the file is permanent or temporary

2. The way the records are organised – sequential, or serial
3. Method of access or location – sequential or direct access

Types of Files
Master File: This is a permanent file which is kept up to date and stores the main
information, summary data and key fields in the data. The master file contains two types of
data:
 Permanent data such as personal files, payroll data, employee status (contract,
permanent or temporary) and job title.
 Less permanent data such as taxes deducted, hours worked, bonuses received.

Transaction File: This is a temporary file which is used to update the master file after a
certain time; usually at the end of the day or at the end of the week. Transaction files
perform three important tasks:

 Add a new record to the master file

 Update or change the contents of a record or field.
 Remove records from the master file such as employee dismissal.
All changes in the transaction file are recorded in another file called the transaction log or
the change file.
Reference File: A reference file stores data that are used as standards for processing
transactions. For example, the payroll program may refer to a tax table to calculate the
proper amount of withholding taxes for payroll transactions. Other reference files include
price lists used for preparing customer invoices, lists of authorized suppliers and customer
credit files for approving credit sales.
Archive file: An archive file contains records of past transactions that are retained for
future reference. These files include journal’s, prior-period payroll information, lists of former
employees, prior period ledgers etc.

Record Matching

A primary key is normally used to identify the record you want to update or delete. The
primary key is usually a field in the record whose value is unique to that record. Examples of
primary keys include StudentID, Passport Number, account number. It means that if you do
not have the primary key, you cannot update or delete any record.

Methods of file organization/processing

1. Serial File Organization:
 This is the simplest file organization scheme. In this method, records can be
arranged one after another in chronological order.
 Serial organization is commonly found in transaction files.
 Sometimes, records in a serially organized file are processed in the order in
which they occur.
 In this scheme, a new customer is given the next highest account number that
has not been issued. Data about new customer are placed at the end of the
existing customer account file.
 When this approach is used, it is easy to distinguish old customers from new
ones because old customers have lower account numbers.
2. Sequential File Organization:
 In sequential file organization, all records are arranged in ascending or
descending order by a record key. For example, in Payroll master file, records
will be arranged in ascending order by employee number.
 To locate an individual record, a sequential search is performed, beginning
from the first record. Thus each individual record must be examined until the
required record is located.
 Such a search is time consuming. Therefore, sequential file organization can’t
provide immediate access to individual records.
 Sequential organization is suitable for master files in a normal batch processing
environment where all or most of the records are processed.
 Certain storage media, like magnetic tape and paper tape allow sequential file
organization only. However, direct access storage devices like floppy disk, CD,
DVD etc. allow sequential file organization as well as direct access file
organization.
Advantages:
» Easy to organize, maintain and understand,
» For locating a particular record it is sufficient to specify the key field,
» Relatively inexpensive media and devices can be used for storage and processing
of files.
» It is very efficient when the activity ratio is very high i.e. for an application where
large number of records in a file is to be regularly updated at scheduled intervals.
For e.g. applications such as payroll processing.
Disadvantages:
» Inefficient and uneconomical for applications in which the activity ratio is very
low.
» It is required to read the entire sequential file even to update few records in the
file.
» Before processing, transactions must be stored and arranged in a sequence.
» A batch of transactions must be accumulated before processing begins.
» Very soon data becomes obsolete because processing starts only after
accumulating a batch of transactions.

3. Indexed Sequential File Organization:

 The indexed sequential file organization or Indexed Sequential Access Method
(ISAM) is a hybrid between sequential and direct access file organizations.
 The records within the file are stored sequentially but direct access to individual
records is possible through an index. This index is similar to a card catalog in a
library.
 This organization permits both sequential as well as random access.
 For direct access of a record, the key is located by the operating system, in the
index file and the address so obtained is used accessing the record. For
sequential access, the index is not required.
 If it is needed to add additional records, they can be stored in a special overflow
area.
 It combines the best features of sequential file organization and directs access.
Advantage:
» In this method it is not required to arrange the transactions in a sequence
because an index is used to locate the address.
» If the activity ratio is high it is economical to use sequential processing of records.
» If the activity ratio is low it efficient to use direct access processing of records.
Disadvantages:
» Relatively expensive.
» Requires extra storage space to make subsequent insertions.
» Requires extra storage space for storing indexes.
» Lot of time is wasted in processing the indexes and in reordering the files
periodically.

4. Direct (Random) File Organization

 Records are read directly from or written on to the file.
 The records are stored at known address.
 Address is calculated by applying a mathematical function to the key field
 A random file would have to be stored on a direct access backing storage
medium e.g. magnetic disc, CD, DVD Example : Any information retrieval
system. Eg Train timetable system.

Advantages
» Any record can be directly accessed.
» Speed of record processing is very fast.
» Up-to-date file because of online updating.
» Concurrent processing is possible.
Disadvantages
» More complex than sequential
» Does not fully use memory locations
» More security and backup problems