BATCH PROCESSING USING REAL-TIME DATA COLLECTION

A popular data processing approach, particularly for large operations, is to electronically

capture transaction data at the source as they occur. By distributing data input capability to
users, certain transaction errors can be prevented or detected and corrected at their source.
The result is a transaction file that is free from most of the errors that plague older legacy
systems. The transaction file is later processed in batch mode to achieve operational
efficiency.
REAL-TIME PROCESSING
Real-time systems process the entire transaction as it occurs. For example, a sales order
processed by the system in Figure 2-32 can be captured, filled, and shipped the same day.
Such a system has many potential benefits, including improved productivity, reduced
inventory, increased inventory turnover, decreased lags in customer billing, and enhanced
customer satisfaction. Because transaction information is transmit- ted electronically,
physical
source documents can be eliminated or greatly reduced.

Real-time processing is well suited to systems that process lower transaction volumes and
those that do not share common records. These systems make extensive use of local area
network and wide area net- work technology. Terminals at distributed sites throughout the
organization are used for receiving, process- ing, and sending information about current
transactions. These must be linked in a network arrangement so users can communicate.
EXERCISES:
1. Distinguish between entity relationship diagrams, data flow diagrams, and system
flowcharts.
2. What is meant by cardinality in entity relationship diagrams?
3. What is an entity?
4. Distinguish between batch and real-time processing.
5. For what purpose are entity relationship diagrams used

5.1 Ethical Issues in Business

Ethical standards are derived from societal mores and deep-rooted personal beliefs about
issues of right and wrong that are not universally agreed upon. It is quite possible for two
individuals, both of whom consider themselves to be acting ethically, to be on opposite sides
of an issue. Often, we confuse ethical issues with legal issues.
moral philosophy – what is morally good and bad; and morally right and wrong
Business Ethics
Ethics pertains to the principles of conduct that individuals use in making choices and
guiding
their behavior in situations that involve the concepts of right and wrong. More specifically,
business ethics involves finding the answers to two questions:
(1) How do managers decide what is right in conducting their business? and
(2) Once managers have recognized what is right, how do they achieve it?
Ethical issues in business can be divided into four areas: equity, rights, honesty, and the
exercise of corporate power.
Making Ethical Decisions
Business organizations have conflicting responsibilities to their employees, shareholders,
customers, and the public. Every major decision has consequences that potentially harm or
benefit these constituents. Seeking a balance between these consequences is the
managers’
ethical responsibility.
5.2 COMPUTER ETHICS
“Computer ethics is the analysis of the nature and social impact of computer technology
and the corresponding formulation and justification of policies for the ethical use of such
technology .... [This includes] concerns about software as well as hardware and concerns
about networks connecting computers as well as computers themselves.”