The paper “ Centralized and Decentralized Data Processing Systems” is an informative example of the presentation on information technology. The paper describes information technology software that is used by the firms in their department. This software remains an important area as they enhance the communication system, within the departments and with their customers. This software’ s, their implementation is described with its benefits. Later the section describes the social impact of information technology on the firm and on society. Before describing the information technology software, let defines in simple words what information technology software is.
Information technology software gathers, store, process, and pass the data to all levels in the hierarchy. ISDMThe data processing system mainly depends on the condition of the firm, its hierarchy, and its size. The activities involved in data processing within the department lines are Store Management, Production planning and control, financial accounting management, and so forth. with the growth in the technology the concept of integrated data processing also changes. Mainly the ISDM is divided into two main broad categories and these are given as follows. Centralized Data Processing SystemDue to the increased use of computers in the firm, there is a growing tendency of management to sue the centralized data processing system.
In a centralized data processing system, a separate department Electronic Data Processing (EDP) is established which mainly deals with the data processing work within different departments of the firm. Sometimes the firm hires the activities of another firm for data processing activities. The benefits of data centralized system are given asThe data emerge only at one placeThe risk of loss of data is minimized by this methodThe methods and machines used can be standardizedThe process is very cost-effectiveThe work duplication is avoided by this process. The decentralized data Processing systemIn a decentralized data processing system, the computing services are broken into different departments of the firm.
Each department handles its own computing system without interacting with other departments.
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