Explain management of data processing systems in business organizations?
Data processing systems comprise the interaction of people, processes, and equipment to generate usable information from raw data. Thus, data processing system management involves the administration of the people and equipment aspects of the system including all the processes outlined as follows:
Data conversion—changing the data into the required format that can be processed.
Data cleanup—removing irregularities in the data before processing.
Organizing—categorizing the data into sets/groups.
Analysis—discovering and generating valuable information from the data.
Reporting—presenting the information.
Management of the different aspects of the data processing system involves planning where resources necessary in the system are allocated to the different functions. Management also includes the process of organizing all the functions to ensure seamless operation of the system. Control is an oversight role of management and ensures that the data processing system works as expected and delivers the output required. Control also ensures that any issues affecting the system are realized and addressed.
A data processing system is a combination of processes that, for any given amount of inputted data, produces a corresponding amount of outputted data. This processing can be manual, automatic, or electronic, though most modern data processing is done through the use of computers. As such, the management of data usually entails highly specific and specialized knowledge concerning the programs that collect and organize data sets. This is especially true in the age of "Big Data," a term that refers to the modern introduction of data sets that are so large and complex that traditional methods of storing and analyzing data are rendered obsolete. In these cases, the data is usually organized into individualized components that are more easily decipherable by data analysts, specialists who are employed by businesses for the purpose of data management.
Data and information play a very important role in management of any enterprise. The use of information becomes more extensive and important for an enterprise with increase in its size and complexity. Data Processing in business refers to all the activities related to the collection of data required by a business, storing and analyzing this data, and supplying the data in form of useful information required for operating and management of the business.
Managers need information about the environment of the enterprise they manage and within which they operate. They need to know the internal resources available in the organization they work for. They need to know its aspirations and limitations. To work effectively they must understand the internal strengths and weaknesses of the organization, the opportunities available and the external threats faced by it. They must have information about the customers of the company and its competitors. They must understand the technology of their business. There are hundreds of such types of information managers must have to manage their companies effectively. They use such information to take decision about their own actions and of subordinates they need to direct and guide. They also pass on information to their juniors, seniors, and colleagues to facilitate their work. Similarly a manager also receives information from others in the organization for facilitating his work. Such exchange of information is essential for collaborative working of the organization.
The management of data processing in business is aimed at providing managers with all such information effectively and efficiently. More specifically Data processing aims to ensure that good quality information available to support all the activities of the business. It aims to provide information to managers that is relevant, accurate, reliable, timely and easy to understand.
Effective management of data processing requires the general management skills, as for management of any other function. In addition it requires good understanding of business processes. Also with intensive use of Information, management of information also requires good technical knowledge of information technology, which covers five main sub-system of data processing processes: data capture, data storage and retrieval, analysis, information presentation, and information transmission.