On-line processing is very useful as it’s done immediately; it is under the control of the CPU and all peripherals that are being used are connected to the main computer. My first example of on-line processing is Thomas cook (books holiday flights, hotel rooms for customers). Because Thomas Cook as branches all over UK it is important that a booking is updated immediately. Let’s say there is only one flight and hotel room available in Barcelona. But there is a lady in Liverpool and London wanting to go on that holiday. So they go into a Thomas Cook branch wanting the Barcelona holiday.

The lady in London finishes booking the holiday and the staff confirm the booking this is then automatically updates the main computer where all the staff can see that there is no more flights. Because the lady in Liverpool was looking at holiday brochures and decided to look for other holidays she missed out on the Barcelona deal. My second example is ATM machines when I person takes out money at a ATM machine it has to be updated immediately so the same person can not take out what they don’t have again. Also they can receive a statement with the latest information on it such as how much money they have left in their account.

Real-time process control This means that the information is updated straight away (opposite of batch processing). Computers have to be fast and accurate to get the best results. When a user uses a ATM machine the input will be processed and updated quickly. Information processing in real-time This is also done quickly a good response time is between the entry of the transaction to processing of the data and the computers response. The delay can be between 1 second to 3 seconds this depends on how big the transaction and computer speed is.

Any delay above 3 seconds would be unacceptable and the system would need to be updated. The other two information processing systems in real-time processing are Transaction and Retrieval processing. Batch processing Batch processing is a slow process, companies use this processing method because time does not matter as information can wait to be updated. They deal with large volumes of data the most popular ones are payroll details and stock issues. The advantage of this type of process is that lager volumes of data is processed at once this is known as hit rate.

The main disadvantage is batch processing is time as many hours even days are taken between collecting and processing the data. So this is not a good process method is your company needs to update quickly. How it works It works like this, the data is inputted and then it gets sorted and validated. Then the data is checked for any errors if there is no errors the data is highlighted as valid batches and it is then processed. After it gets processed it is saved as a system file until it is outputted. But if there is any errors the data will be highlighted as invalid batches, after this it is sorted and the errors are sent back to input.

Distributed processing This type of processing method is very popular with large organisations as information can be shared. This type of method spreads the processing tasks of an company across many computer systems. The computers are connected and they share information via a data communication system. Every computer can process information individually. This type of processing method is popular with banks as they can set up a local area network in different braches after the network is in place it is then linked to one main computer where all the branches can access the information.

This type of methods is expensive so it would not suite companies who have two or three branches as they can use main or email to send information this would be cheaper for them. Centralised systems This kind of processing method uses one mainframe (computer), all the users that work for that organisation are connected to the mainframe. Most large organisations use this method. All the information is stored on the mainframe and the computers that the staff are using are connected to the mainframe. If a worker needs information to show their client they would use their PC to show this but the information will come from the mainframe.

Because the reduction in hardware costs and it is increasing in computer power it has moved this towards distributed processing this is done through computer networks. Time-share processing The main purpose of this type of processing is that it gives each user the same amount of time for their tasks. The CPU is very fast and performs the tasks quickly after it has performed its task it will divide it’s time to all users. An operating system has time-sharing software to do this. This type of processing is possible because the CPU is quicker that the peripheral devices.

Another reason why this is possible is because the processing tasks consists more of input and output data so it leaves the CPU to do other tasks. This type of processing was mainly used in large organisations. Task 3 Choice of data handling methods It is important to choose the correct data handling method. The management will have to look at every aspect, but their main reason for their chose will be the size of the organisation. If the company is small and it only employs a few workers then a computerised system will not be needed. That company will benefit by using manually methods such as pen and paper to record information.

But if the company grows over the years then it will need a computerised system as it will save money in the long run. Because the staff are spending time going over the paper work . If they had a computer this could be done more quickly. Larger organisations will need some kind of a computerised system as it would take to much time analysing stock, sales etc. By having a computer and appropriate software this could be done in minters. So the time that staff have saved can be used elsewhere. Also other electrical methods would helpful for example in a larger organisation E- mail could be useful as it’s free and quick.