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Information Processing
Information Processing
Chapter 1 explained the difference between data and information. Here is a brief
reminder:
Information processing has many benefits that make our lives easier and
more efficient:
● It makes a lot of tasks easier and faster. For example, you are able to pay bills
online or at a supermarket, which saves you from going to the place that issued
the bill.
● A lot of data is stored during information processing. Stored data is quick and
easy to access and it does not have to be processed or examined again.
● It results in automation. Multiple tasks are performed without you even
knowing about them. These tasks require little or no control by humans.
● It enables sharing and analysis of information. Information is easy to pass along
and stored information is easy to access and analyse. This means that trends can
be spotted faster and people can share ideas on how to improve processes.
● Once an information processing system has been set up, it is often easy to
maintain.
There are some disadvantages to information processing. It can be very
expensive to set up initially because of the hardware, software and
technical requirements. Depending on the system, it can be expensive to
maintain. Hardware and software must be replaced and kept up to date,
and specialists are often needed to operate these systems.
Electronic banking is a very useful information processing system. Many banks offer
an internet banking service, which allows you to conduct many transactions from your
bank account over the Internet. You can also do an electronic funds transfer (EFT).
EFT transfers money from one account to another without using cash or cheques.
Many people pay for purchases at shops using their bank cards. This is a form of EFT.
The customer's card is inserted into a POS terminal and funds are transferred from the
customer's bank account to the shop's bank account.