15.2 Differences between computerised and manual systems

Computerized systems and manual systems have several differences in terms of their nature, processes, and characteristics. Here are some key differences between the two:

1. Nature of Operations: In a manual system, all processes and transactions are performed manually using paper-based documents and physical records. In contrast, a computerized system relies on electronic devices, software applications, and databases to automate and streamline operations.
2. Speed and Efficiency: Computerized systems are generally faster and more efficient compared to manual systems. Tasks that would take a significant amount of time to complete manually can be performed quickly and accurately with the help of computerized systems. Automation reduces human error and allows for faster data processing and analysis.
3. Data Storage and Retrieval: Manual systems typically rely on physical storage, such as filing cabinets and paper documents, which can be time-consuming to organize and retrieve. Computerized systems store data electronically, making it easier to search, retrieve, and analyze information using search functions and database queries.
4. Accuracy and Consistency: Computerized systems provide a higher level of accuracy and consistency in data processing and calculations. Manual systems are more prone to errors, such as transcription errors, calculation mistakes, or misplaced documents. Computerized systems have built-in validation checks and automated calculations that help reduce errors.
5. Scalability and Capacity: Computerized systems have the advantage of scalability and can handle large volumes of data and transactions more efficiently. As the organization grows, computerized systems can easily accommodate increased data processing requirements. Manual systems may struggle to cope with high volumes of transactions and may require additional resources to handle the increased workload.
6. Reporting and Analysis: Computerized systems provide greater capabilities for generating reports and conducting data analysis. With the use of software applications and reporting tools, data can be quickly summarized, analyzed, and presented in various formats. Manual systems may require significant manual effort to compile and analyze data for reporting purposes.
7. Audit Trail and Controls: Computerized systems offer the advantage of built-in audit trails, which record and track all system activities and transactions. This provides a robust control mechanism and facilitates audit trails for compliance and fraud detection purposes. In a manual system, establishing and maintaining an audit trail can be more challenging and time-consuming.
8. Flexibility and Adaptability: Computerized systems offer greater flexibility and adaptability to changing business needs and requirements. Software applications can be customized and updated to accommodate new processes or changes in regulations. Manual systems may require significant manual rework or process changes to adapt to new requirements.