BAM 215 – Data Processing

Introduction
 Data refers to the raw facts that do not have much meaning to the user and
may include numbers, letters, symbols, sound or images.
 Information, on the other hand, refers to the meaningful output obtained after
processing the data.
 Therefore the data processing refers to the process of transforming raw data into
meaningful output i.e. information.
 Data processing can be done manually using pen and paper, mechanically using
simple devices like typewriters or electronically using modem data processing
tools such as computers.
 Electronic data processing has become so popular that manual and mechanical
methods are being pushed to obsolescence.

What is a System?

The term system is derived from the Greek word systema, which means an
organized relationship among functioning units or components. A system exists
because it is designed to achieve one or more objectives. We come into daily
contact with the transportation system, telephone system etc. Similarly we talk
of the business system and of the organization as a system consisting of
interrelated departments such as production, sales, and personnel.

There are more than a hundred definitions of the word system but most seem to
have a common thread that suggests that a system is an orderly grouping of
interdependent components linked together according to a plan to achieve a
specific objective.

A system is a collection of parts (or subsystems) integrated to accomplish an

overall goal (a system of people is an organization). Systems have input,
processes, outputs and outcomes, with ongoing feedback among these various
parts. If one part of the system is removed, the nature of the system is changed.

The word component may refer to physical parts or a subsystem in a multilevel

structure. The components may be simple or complex, basic or advanced. They
may be a single computer with a keyboard, memory and printer or a series of
intelligent terminals linked to a mainframe.

Elements of a System

The important elements of a system are;

 Output and Inputs

 Processor(s)
 Control
 Feedback
 Environment
 Boundaries and Interface
 BAM 215 – Data Processing

A major objective of a system is to produce an output that has value to its user.
Whatever the nature of the output, it must be within the line with the
explanations of the intended user. Inputs are the elements that enter the
system for processing. Output is the outcome of processing. A system feeds on
input to produce output in much the same way that a business brings in human
financial, and material resources to produce goods and services. It is important
to point out here that determining the output is a first step in specifying the
nature, amount and regularity of the input needed to operate a system.

Processor(s)
The processor is the element of a system that involves the actual transformation of
input into output. It is the operational component of the system. Processor may modify
the input totally or personally, depending on the specifications of the output.

Control

The control element guides the system. It is the decision — making sub-system
that controls the pattern of activities governing input, processing and output. In
an organizational context, management as a decision making body controls the
inflow handling and outflow of activities that affects the welfare of the business.

Feedback

Control in a dynamic system is achieved by feedback. Feedback measures

output against standard in some form. After the output is compared against
performance standards, changes can result in the input or processing and
consequently, the output.

Feedback may be positive or negative, routine or informational. Positive

feedback reinforces the performance provides the controller with information for
action.

Environment

The environment is the “super system” within which an organization operates. It

is the source of external elements that unhinge on the system. In fact, it often

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determines how a system must function. The organization’s environment,

consisting of vendors, competitions and others, may provide constraints and
consequently influence the actual performance of the business

Boundaries and Interface

A system should be defined by its boundaries — the limits that identify its
components, processes and interrelationships and interfaces with another
system. For example, a teller system in a commercial bank is restricted to the
deposits, withdrawals and related activities of customers checking and savings
accounts. It may exclude mortgage foreclosures, trust activities and the like.

This means that in systems analysis, knowledge of the boundaries of a given

system is crucial in determining the nature of its interface with other system for
successful design.

CLASSIFICATION OF SYSTEMS
1. Manual System
A manual system is like a bookkeeping system in which records maintanance is
done by hand, without using a computer system or any automatic system. In
this type of system transactions are written in journals, from which the
information is manually retrieved into a set of financial statements. These
systems suffer from higher rate of inaccuracy, and they are much slower than
computerized systems.
2. Automated System

Automated system is a combination of both software and hardware which is

designed and programmed to work automatically without the need of
any human operator to provide inputs and instructions for each operation.

Manual System Vs Automated System

Speed& Accuracy
The main difference between manual and computerized systems is the speed
factor. Accounting software processes data and creates reports much faster
than manual systems. Calculations are done automatically in software
programs, minimizing errors and increasing efficiency

Cost Effectiveness
Another difference between manual and computerized systems is cost. Manual
accounting with paper and pencil is much cheaper than a computerized
system, which requires a machine and software. Other expenses associated
with accounting software include training and program maintenance. Expenses
can add up fast with costs for printers, paper, ink and other supplies.

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Backup/Storage
A third difference between manual and computerized systems is the ease of
backup of a computerized system. All transactions can be saved and backed
up, in case of fire or other mishap. You cannot do this with paper records,
unless you make copies of all pages--a long and inefficient process.

Examples of Automated and Manual Systems

1. Automobile
The automobile industry is extremely vast and progressive. The operation
techniques being used in automobiles are improving and getting automized day
by day. For example, during the earlier days, vehicles were dependent on
manual transmission systems but in the present world, the manual system of
transmission has been replaced by an automatic transmission system.

2. Kitchen Tools
Before modernization, cooking used to be a very hectic job because everything
was required to be done manually. Chopping, peeling, blending, mixing, etc.
everything was done by hands, but in the present world, it has become very
easy to cook and serve. The reason is that most of the appliances that we use in
modern kitchens are automatic.

3. Power Backup Devices

Power backup devices are the best examples of automation. When the regular
power supply goes off, devices like UPS, inverters, etc. directly connect us to the
stored backup power. These devices are helpful as they allow the user to avoid
an abrupt power cut off, which is quite inconvenient.

4. Medical
A person who is subjected to a life support system needs utmost care and
observation. Life support systems and ventilators employ automatic devices to
perform various special tasks. These devices are equipped with multiple sensors
that are designed to monitor and observe the body signals in order to activate
the device’s features accordingly. For instance, a ventilator automatically turns
on the artificial oxygen supply as soon as it senses a drop in the level of oxygen
in a person’s body.

5. Industrial Machinery
In a small scale industry, all the tasks are performed and managed manually
with the help of the workforce; however when it comes to large scale industries,
where the production rate of goods is comparatively higher, and the scenario is
different. With the increase in workload, the need to use automatic robotic
arms, conveyor belts, and other related equipment arises. Automatic machines
reduce the possibility of human errors and allow the work to be performed at a
rapid and uniform pace.

6. Agriculture
To increase the quality and quantity of crop production, a number of traditional
agricultural equipment need to be reformed. For the ease of farmers, a lot of

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machines have been invented that are capable to do tedious tasks quickly with
great precision. Some examples of automatic machinery currently being used in
the agriculture industry include harvesters, irrigation systems, plowing
machines, self-driving tractors, etc.

7. Sports
Sportsmen need regular practice sessions irrespective of the factors like the
availability of training partners, favorable weather, etc. Most players make use
of automatic ball throwing devices. These devices are designed to throw the
balls at the person randomly and automatically. This prepares the player to be
spontaneous and get ready for every possible shot. A person can practice alone
with the help of a ball thrower as it completely eliminates the need for a
controller to be present nearby and operate the machine.

SYSTEMS ANALYSIS

It is a process of collecting and interpreting facts, identifying the problems, and

decomposition of a system into its components.
Another definition of System analysis is its evaluation of a particular system to
identify the areas of improvements and make any necessary enhancements, if
needed.
System analysis is conducted for the purpose of studying a system or its parts in
order to identify its objectives. It is a problem solving technique that improves
the system and ensures that all the components of the system work efficiently
to accomplish their purpose.
Systems Development Life Cycle

The systems development life cycle (SDLC) is the process of understanding how
an information system (IS) can support business needs by designing a system,
building it, and delivering it to users. The stages are described below. The
analyst must progress from one stage to another methodically, answering key
questions and achieving results in each stage.

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Step 1: Recognition of Need — What is the Problem?

One must know what the problem is before it can be solved. The basis for a
candidate system is recognition of a need for improving an information system
or a procedure. For example, in a school where payment of school fees is done
manually by having students queue up for the process, the management may
inspect to find a way to solve this problem so that it would be less stressful in
the whole process.

The management may want to have an analyst look at it, such an assignment
implies a commitment, especially if the analyst hired from the outside. In larger
environments, where formal procedures are the norm, the analyst’s first task is
to prepare a statement specifying the scope and objective of the problem. This
is called the Preliminary Investigation.

Step 2: Feasibility Study

Depending on the results of the initial investigation, the survey is expanded to a

more detailed feasibility study. A feasibility study is a test of a system proposal
according to its workability impact on the organization, ability to meet user
needs, and effective use of resources. It focuses on three major questions:

 What are the user’s demonstrable needs and how does thenew system meet
them?
 What resources are available for the newly proposed system? Is the problem worth
solving?
 What are the likely impact of the proposed system on the organization? How will it
fit within the organization’s master MIS plan?

The objective of a feasibility study is not to solve the problem but to acquire a
sense of its scope. During the study, the problem definition is crystallized and
aspects of the problem to be included in the system are determined.

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Consequently, costs and benefits are estimated with greater accuracy at this
stage.

The result of the feasibility study is a formal proposal. This is simply a report – a
formal document detailing the nature and scope of the proposed solution. The
proposal summarizes what is known and what is going to be done. It consists of
the following.

1. Statement of the Problem — a carefully worded statement of the problem

that led to analysis.
2. Summary of Findings and Recommendations — a list of the major findings
and recommendations of the study. It is ideal for the user who required
quick access to the results of the analysis of the system under study.
Conclusions are stated, followed by a list of the recommendations and a
justification for them.
3. Details of Findings — An outline of the methods and procedures
undertaken by the existing system, followed by coverage of objectives &
procedures of the new system. Included are also discussions of output
reports, file structures, and costs and benefits of the new system.
4. Recommendations and Conclusions — special recommendations regarding
the proposed system, including the personal assignments costs, project
schedules, and target dates.

Three key considerations are involved in the feasibility analysis: economic,

technical, behavioural. This is a crucial decision point in the life cycle. Many
projects die here, whereas the more promising ones continue through
implementation.

Step 3: Analysis

It is a detailed study of the various operations performed by the system and

their relationship within and outside of the system. A key question is — what
must be done to solve the problem? One aspect of analysis is defining the
boundaries of the system and determining whether or not a new system should
consider other related systems. During analysis, data are collected on available
files, decision points, and transactions handled by the present system.

Some logical system models and tools that are used in analysis. Once analysis is
completed the analyst has a firm understanding of what is to be done. The next
step is to decide how the problem might be solved. Thus, in the systems design,
we move from the logical to the physical aspects of the life cycle.

Step 4: Design

The most creative and challenging phase of the system life cycle is system
design. The term design describes both a final system and a process by which it
is developed. It refers to the technical specifications (analogous to the
engineer’s blueprints) that will be applied in implementing the proposed system.

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It also includes the constructions of programs and programme testing. The key
question here is — How should the problem be solved?

Step 5: Testing

No system design is ever perfect. Communication problems, programmers

negligence or time constraints create errors that must be eliminated before the
system is ready for user acceptance. A system is tested for online response,
volume of transactions, stress, recovery form failure and usability.

Step 6: Implementation

This phase is less creative than system design. It is primarily concerned with
user training, site preparation, and file conversion. When the new system is
linked to terminals and remote sites the telecommunication network and tests
of the network along with the system are also included under implementation.

During the final testing, user acceptance is tested, followed by user training.
Depending on the nature of the system, extensive user training may be
required, conversion usually takes place at about the same time the user is
being trained or later.

Step 7: Evaluation

Evaluation of the system is performed to identify its strengths and weaknesses.

The actual evaluation can occur along any one of the following dimensions:

 Operational Evaluation: Assessment of the manner in which the system

functions, impact.
 Organizational Impact: Identification and measurement of benefits to the
organisation in such areas as financial concerns, operational efficiency and
competitive impact.
 Development Performance: Evaluation of the development process in
accordance with such yardsticks as overall development time and effort,
conformance to budgets and standards and other project management
criteria.

Step 8: Post - Implementation and Maintenance

Maintenance is necessary to eliminate errors in the working system during its

working life and to tune the system to any variations in its working environment.
Often small system deficiencies are found as a system is brought into operation
and changes are made to remove them.

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WORD PROCESSING PACKAGES

Word processing packages are generally referred to as text editing and

manipulating programs on the computer system, e.g. MS-word

Microsoft Word is a popular word processing software. It helps in arranging

written text in a proper format and giving it a systematic look. This formatted
look facilitates easier reading. It provides spell-check options, formatting
functions like cut-copy-paste, and spots grammatical errors on a real-time basis.
It also helps in saving and storing documents.

Basics of Word Processing

Sr.No. Word Processing Concepts & Description

1 Opening Word Processing Package

Word processing package is mostly used in offices on
microcomputers. To open a new document, click on "Start"
button and go to "All Programs" and click on "Microsoft Word".

2 Opening and Closing Documents

Word automatically starts with a blank page. For opening a new
file, click on "New".

3 Page Setup
Page setup options are usually available in "Page Layout" menu.
Parameters defined by the user help in determining how a
printed page will appear.

4 Print Preview
This option is used to view the page or make adjustments
before any document gets printed.

5 Cut, Copy and Paste

In this section, we shall learn how to use cut, copy and paste
functions in Word.

6 Table Manipulation
Manipulation of table includes drawing a table, changing cell
width and height, alignment of text in the cell, deletion/insertion
of rows and columns, and borders and shading.

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Menu Bar

A menu bar is located below the title bar. A menu bar is an application window
to furnish application or window-specific menus. Menu bar has File Menu along
with Home, Insert, Design, Page Layout, References, Mailings, Review, and View.
 File − It has options such as, Save, Save As, Open a New Document, Print,
etc.
 Home − It has icons to change Font Size, Style, Alignment, Borders, etc.
 Insert − It has icons to insert Table, Shapes, Chart, Pictures, Screenshot,
Header, Footer, etc.
 Design − It has icons to change Themes, Colors, Fonts, Effects, Page
Borders, etc.
 Page Layout − It has icons to set Margins, Orientation, Size, Breaks,
Indent etc.
 References − It has icons to Add Text, Update a Table, Insert Footnote,
Index.
 Mailings − It has icons to start Mail Merge, Add Labels, Envelopes, etc.
 Review − It has icons for Spelling and Grammar Check, Thesaurus, Word
Count, Comments, Tracking, etc.
 View − It has icons like: Zoom, Print Layout, Switch Windows, Split, etc.

The Uses of Word Processing Packages to Business

Word processing software is widely used for:

 writing documents such as letters, memos, reports, books, articles, notes
and faxes
 creating email messages
 producing agendas and minutes of meetings
 generating invoices, statements, referrals and other written material

Features of a Word Processing Package

Professional word processing packages are capable of performing many
intricate tasks. Here is a list of some of the features you would expect to find:
 Editing Facilities: Words or lines can be entered (i.e. inserted) or
deleted in any part of the text with proper alignment. Similarly, there is a
facility to ‘recover’ the text which is deleted by mistake or accidentally.
Another facility is that any ‘word’ can be replaced with a new one
throughout the file, wherever the old one appears.
 Spelling and grammar checkers- word processors provide checking of
spelling facility. It provides synonyms (or words with similar meanings).
During typing, they check for wrong or misspelt words as well as
grammatically wrong sentences and indicate by underlining them
accordingly.
 Cut and paste — text/graphics can be rearranged within the same
document or between a number of documents. With this facility, one can
move a selected text to the desired location in the document or another.

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The cut text is completely removed from its original place and the paste
option allows it to be placed in another location.
 Copy and Paste: it is similar to Cut, only that the selected text is not
removed from its original position but rather, make duplicates of the text.
 Page Formatting — layouts, margins, pagination, etc. are carried out
with this feature. With page formatting, the actual size of paper upon
which you want the document appear when printed, can be set.
 Text Alignment/Text Formatting— e.g. justified,centre, left, right, and
full justification. Text formatting refers to the way the text is desired to
appear in the document. This may include any of the following:
- Paragraph settings
- Line spacing
- Selecting font specifications
- Setting footnotes
- Page numbers, headings for headers and footers, etc.
 Search and Replace – This feature enables you to search the entire
document for a desired word or phrase which can be replaced with
another.
 Automatic Page Numbering – With this feature, once you command it
the entire document is paginated using the desired number format and
position.
 Sorting Facilities – this facility will re-arrange the selected text in a
specific order.
 Macros – a macro is a character or word that represents a series of
keystrokes. In Ms Word, you can automate frequently used tasks by
creating and running macros. A macro is a series of commands and
instructions that you group together as a single command to accomplish a
task automatically.
 Tables– tables are created to handle or present data in rows and columns
for easy and better output.
 Mail Merge – this is a feature within word processors that enables users to
send a similar letter or document to multiple recipients. It enables connecting a
single form template with a data source that contains information about the
recipient’s name, address and other predefined and supported data.
Mail Merge printing facility helps in printing same original letter with
different addresses, so that each letter is ‘original’ and not a carbon copy.
 Printing: - it gives a ‘hard-copy’ of the text on pieces of paper. The
printing can be controlled after printing a fixed number of pages r can be
resumed from any specified page number.
 Envelopes/labels
 Newspaper/parallel columns
 Table of contents, indices, table of authorities
 Watermark
 Some desktop publishing capabilities

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Disadvantages of Word Processing Packages

 requires a computer (and electrical power) to write

 data can be lost by a computer malfunction

 requires a computer or printer to view document

 certain languages (esp. Asian languages) require hundreds of symbols not easily
accessed on a keyboard
 symbols and equations are easier to write than create on a computer

MS-Word Layout Tools

The default word document layout tools include the following:
 Title Bar: displays the document name and the application
 Menu Bar: contains the list of menus available inside word, each menu
contains a specific set of commands.
 Standard Toolbar: provides shortcuts in the form of buttons for
frequently performed tasks. In latest versions we have what is called

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‘Quick access bar’. The basic shortcut commands on this bar include:
open, close, save, undo, redo, table, new page, etc.
 Formatting Toolbar: Contains a list of formatting options available
inside the format menu. Latest versions do not have ‘format menu’, and
so the formatting toolbar is absent.
 Horizontal and Vertical Rulers: used for measurement purposes like
any normal ruler; the default unit of measurement is in inches.
 White Page Area: is the space area where you type, edit and format
your documents.
 Insertion Point: is the blinking vertical line that indicates the position on
the screen (or on the white page area) where text and other graphics can
be placed. The insertion point is also called the cursor.
 Task Pane: is a small window within the word window that provides
shortcuts to commonly used tasks.
 Scroll Bars: are used to move up and down, or left and right in the
document.
 Status Bar:displays the details such as the page number the user is
working on, section number, page number out of the total pages, and
words count, etc. contained in the entire document.

Functions of Commonly Used Commands

a) New: creates a new blank document based on the default template
b) Open: opens or finds an existing file
c) Save: save the active file with its current file name, location and file
format
d) saveAs: allow the user to save the unsaved document for the first time. It
gives you’re an opportunity to provide the file name of your choice,
choose the location and the type of document you want to save in.
e) Print: provides a dialog box to be completed for printing purposes
f) Print Preview: shows how the document will look when printed
g) Format Painter: copies the format from a selected object or text and
applies to other objects.
h) Undo: reverses the last command, use pull-down menu to undo several
steps
i) Redo: reverses the action of the Undo command; use the pull-down menu
to redo several steps
j) Insert Table: inserts a table into the document, or make a table of
selected text.
k) Insert Excel Worksheet: inserts an Excel spreadsheet into the Word
document.
l) Columns: changes the number of columns in the document
m) Zoom: enlarges or reduces the display of the active document (especially
the white page area), to enhance view.
n) B: makes your text bold
o) I: italicizes your text
p) U: underlines your text
q) Alignment: each button respectively allows you to make your text
aligned to the left, center, right side or justify the text across the page
using the buttons.
r) Line Spacing: Allows you to set the amount of space that word puts
when you move to the next line.

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s) Font Colour: Allows you to change the text colour of your choice
t) Page Setup: Allows you to specify the size, margin settings and
document orientation
u) Find: Allows you to search for a text or phrase in the entire document
(Ctrl +F)
v) Bullets and Numbering: enables you to set different styles of
numbering automatically (bullets, numbers, or letters or Arabic numerals)
w) Drop Cap: used to drop the letter to different lines
x) Change Case:used to change the case of letters (Upper and Lower cases)
y) Exit: Allows you to exit or close the entire document window.
z) Close: is an option that enables you to close only the file you work on it
currently

SPREADSHEET APPLICATION PACKAGES

A spreadsheet is a software program you use to easily perform mathematical

calculations on statistical data and totaling long columns of numbers or
determining percentages and averages.

A spreadsheet, also called an electronic work sheet, is a computer program that

organizes data into rows and columns in the form of a graph. Each row and
column can be manipulated with formulas, commands, and formats. This tool is
especially useful for accountants, financial analysts, and business people to
analyze business performance numbers and results.

Without the help of accounting packages, spreadsheets are often used to

prepare financial statements, budgets, and stock analysis reports. Since this
tool is so versatile and easy to use, it can also increase the analysis time, review
capabilities, and understandability of reports.

Spreadsheet Structure

A spreadsheet consists of a table of cells arranged into columns and rows.

Columns are normally represented by letters and rows by numbers. Each cell,
therefore, has an 'address' and can be located by its column and row – C5 for
example.

Cells commonly contain one of five different data types:

1. Boolean values: Boolean or logical values are either TRUE or FALSE. For
example, this could be Male/Female or Yes/No
2. Dates and times: Stores dates and times that can be used in calculations,
such as calculating ages from dates of birth, or wages from hours worked
3. Values: Numbers. Whole numbers (1, 2, 500) and decimals (1.5, 80.45
etc.) can be used interchangeably within a spreadsheet. For example, a
quantity in stock may be represented by a whole number, while employee
hours may be represented by a decimal number

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4. Text: Descriptive pieces of information such as names, addresses and post

codes
5. Formula: Allows you to add, subtract, multiply or divide information in one
cell by the values in another cell. More complicated formulas containing
algebraic expressions and other mathematical equations can also be used
Common Uses of Spreadsheets in Business

1. Storing Data
One of the main uses of spreadsheets in business is storing data. If you
have a business organization, you will need a spreadsheet to store
almost any type of information.

2. Manipulate and Analyze Data

Apart from storage, you can use spreadsheets to manipulate and
analyze data. For example, it contains a feature that allows you to
enter custom formulas. You can use them to perform different functions
such as addition, subtraction or calculating percentage.

3. Presentation/Visualization
Spreadsheets are used often for visualization purposes. They contain
different tools and features that make it possible. For example, you can
present your data in charts or graphs. There are various types of these
charts and graphs to choose from according to your needs.

4. Modeling and Planning

Spreadsheets play a huge role when it comes to planning. You can use
them in two ways. First is by analyzing and visualizing data hence
getting a clue of how your business is doing in various fields. Next, you
can highlight areas that need more attention to growth or
reconsideration. The second way to use spreadsheets in planning is by
calculating the potential results due to changes in your company.

5. Inform the Decision Making Process

Decisions that a business makes determines whether it will be
successful or not. Spreadsheets help managers and investors to make
well-informed decisions. Through data visualization, management can
easily identify the areas of weaknesses. Having this information at
hand all the time it will lead the manager into making decisions that
can make more profits.

6. Business Accounts and Budgeting

Coming up with a budget is not an easy task without the use of

spreadsheets. You can create a table and list the most important things
followed by the least important. There are features that will show you
the sectors that need the most attention.

7. Invoices

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Most spreadsheet platforms will allow you to integrate the invoice

template. It speeds up the process of receiving or dispatching products.
The invoice template can easily fetch data from the spreadsheet hence
making the whole process automated. In addition, it produces very
accurate results. Handling invoices manually or with other external
applications is a slow process.

Advantages
Here are some of the common advantages of spreadsheets.
1) They’re free
You can get access to spreadsheet software easily and they’re most often free.
The most common examples are Microsoft Excel and G-Suite, where you can
easily access them with just an internet connection.
2) Easy to use
The spreadsheets software is easy to use. Whether you want to manage your
personal finances or want to make tables for any purpose, it is easy to use.
Except for the usage of complex formulas, anyone can record information in
spreadsheets and it doesn’t require special training.
3) Easy to track payments or inventory
Tracking payments and inventory can be a complex and time taking task, but
spreadsheets make it easy for you. Spreadsheet software can be an affordable
option to analyze the company’s earnings and spending.
4) Business Plan
You can prepare a rough model of your business plan with this. In addition, you
can use it to track various aspects of your company like legal structure, its
strengths, weaknesses, revenue plan, etc. Besides, you can get many online
templates for your business.
5) Accounting
Accounting is one of the major functions of spreadsheets. If you’re an
accountant and want free software to create a balance sheet, financial
statements, budget, you can use spreadsheets for it. Furthermore, you can also
use them for expense tracking, forecasting and calculation of loans.
6) Integration
You can integrate your spreadsheet software with other software to boost its
productivity.
7) Formatting
This software allows you to do formatting to navigate lots of financial data. With
multiple formatting options, you can make your user visually appealing and
understandable. For example titling, colouring, etc.

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Disadvantages
Though spreadsheets are free and easy to use but they’re not suitable for all
businesses due to:
1) More Chances of Error
They are more chances of human error who use this software for a large amount
of data. A small mistake can cost you thousands of pounds.
2) Difficult to Share Internally
If a single person is managing the spreadsheet, it works well. But if there are
more members added to the team, it’d be difficult to share and update the
spreadsheet information with the whole team.
3) Difficult for Data Visualization
Though you can prepare charts and graphs on spreadsheets but assembling the
visual data on it is a daunting task.
5) Security Risk
Commonly, spreadsheets are not secure and have a greater risk for
mismanagement. Besides, sensitive information can’t be protected from
hackers, even if it is protected by a password.

Some Important Features of MS-Excel

1. Window-based Application: Excel like all other applications(e.g. MS-
Word) has toolbars, shortcut menus, auto correct, online help and wizards.
Most of the features you experienced with Ms-Word can be seen with
Excel.
2. Workbooks: are the files in which worksheets related to a project are
held.
3. OLE Support: object linking and embedding is a feature through which
Excel can contain any object ike a document, a picture, etc.
4. High Volumes of Data: Excel can contain large volumes of data. A
worksheet can contain 65536 rows and 256 columns of information. A
single cell can contain a maximum of 255 characters. One workbook can
contain a maximum of 256 worksheets.
5. Availability of Functions: Several Mathematical, financial and statistical
functions are available in an Excel package.
6. Availability of Charts and Graphs:Ms-Excel allows users to view data
entered as tables in a graphical form as charts, which helps the user to
easily understand, analyze data & do comparisons.
7. Sorting Capability: Excel has the capability sorting data in ascending or
descending orders.
8. Auto Fill Feature: Excel has the feature which allows to fill cells with
repetitive data such as chronological dates or numbers as well as
repeated text.
Getting Started with Excel
An Excel document is called a workbook. By default, Excel workbook contains
three-(3) worksheets designated as Sheet 1, Sheet 2, and Sheet 3. The file
extension name for Excel workbook is .xls

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We can start Excel in many ways but the normal way include:
Start  Programs  Microsoft Office Suite Ms-Excel
Components of the Excel Window
 Rows, Columns & Cell: In a worksheet, rows are numbered from top to
bottom. The columns are labeled with letters from left to right. The cell is
the intersection of row and column. Therefore, cells are referenced using
column label and row number, e.g. C5.
 Title Bar: Like in MS-Word, it contains the file name and the program
name.
 Menu Bar: is made up of different menus, e.g. File, home, insert, design,
page layout, etc.
 Active Cell: the cell in which you are working
 Formula Bar: displays the content of the active cell. It is used to edit cell
content, or write formulas that can be executed to display their result in
the active cell.
 Name Box: displays the cell address of the active cell. That is, the
column letter followed by the row number, e.g. B6
 Status Bar: located at the very bottom of the screen displays brief
information about activating features within the worksheet area.
 Sheet Tabs: appear above the status bar displaying the name of the
worksheets.
Entering Data
You can enter text, numbers and dates in an Excel worksheet directly.
Select the cell  Type the information  Press Enter from the
keyboard.
Editing Text
The easiest way to edit the content of a cell is to select the cell and then retype
the entry. The new entry replaces the old contents. Many other ways of editing
data shall be seen through practical sessions.
Aligning Data
By default, any text entered in Excel is automatically aligned to the left and any
value or number is aligned to the right. To change the default alignment, you
can use the alignment buttons on the formation tool bar.
Formulas
In Excel, one of the powerful features is formulas. A formula is an equation that
is used to perform calculations on data in a worksheet. We can use formula to
perform Mathematical, Statistical & Date/Time operations on a single value or a
set of values by using operators.
The cells in which formulas are stored display the result of the calculation and
not the formula itself.
In excel, a formula starts with an equal (=) sign and should be followed by the
operation to be performed. We can use any number of operators in single
formula. MS-Excel evaluates the formula according to the order of precedence
of the operators as seen in this table.

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 BAM 215 – Data Processing

Operator Operation Preceden

ce

() Bracket 1

^ Exponentiation 2

*, / Multiplication, 3
division

+, - Addition, subtraction 4

& Concatenation 5

=, >, < Comparisons 6

Example of the Formula Expression:

Suppose the values in the cells B2, C2, D2 are 34, 28, and 58 respectively.
Now, to add these values and to have the result in the cell F2,
- Click on the cell in which total marks is to be displayed (i.e. F2)
- Type: “=(B2+C2+D2)”
- Press Enter from the keyboard.
The value of 118 will be displayed in F2.
Functions
A function is a built-in, ready-made and frequently used formula that accepts
data, performs calculations & returns results.
To enter a function in a cell, you either enter in the cell directly or select the cell
and enter it in the formula bar and press enter key from keyboard. Each formula
is preceded by equality sign (=), followed by function name, cell-range within
brackets and the colon (:) inbetween the beginning and last cells. Thus:
“=function_Name(initial_Cell : last_Cell)”
E.g. =SUM(B2:D2) or =AVERAGE(B1:B10)
Mathematical Functions with Syntax and Purpose:
i) Sum(num1, num2,) – gives the sum of the values in a specified range
ii) Abs(number) – gives the absolute value of the number
iii) Fact(number) – gives the factorial of the number
iv) Sqrt(number) – gives the square root of the number
v) Log(number) – gives the logarithm of the number.
Statistical Functions with Syntax and Purpose:
i) Average(cell range) – calculates the average of the values in a
specified range
ii) Stdev(cell range) – calculates the standard deviation of the given data
iii) Mean(cell range) – calculates the mean of the given data
iv) Max(cell range) – gives the maximum value within the range specified
v) Count() – returns the total number of items in the count specified in the
list of argument.

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Charts and Chart Types

Charts in Excel are used to represent data pictorially. We can use different types
of charts to represent data, such as:
1. Column charts
2. Bar charts
3. Line charts
4. Pie charts
5. XY (Scatter) charts
6. Area charts
7. Doughnut
8. Radar
9. Surface
10. Bubble
11. Stock
12. Cylinder, cone, & Pyramid

REFERENCES
1. www.javatpoint.com/
2. www.tutorialspoint.com/
3. Etc.

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