A data flow diagram, according to Chen (2009), is majorly used for providing a graphical representation of the flow of data via a system. It tends to portray the information that is exchanged by a system, as well as, the information passed from one external interface to the other. While this is the case, Matt (2014) revealed that the diagram does not usually show when or in what sequence the data is passed from one party to another. In his research study, Matt (2014) provides a clarified an example in which system analysts use DFDs. The researcher illustrated the manner in which data moves between the diverse entities in a banking system. As such, it usually runs from the daily operations often carried through the banking hall. Following this, the activities are transferred to the back office procedures where they are processed and then transferred to the data store.
From here, according to Chen (2009), the process is transformed to match a data flow. The situation in this case clearly relates to that of a bank, one that is used in making banking decisions. In this case, the use of the DFD is to safeguard the integrity of the banking processes. The activities carried out at the banking hall only serves as formalities. What is of more importance usually takes place in the back office. In the back office, what has been happening during the day is translated into a graph and from this, necessary inference is made. From this diagram, Chen (2009) indicated that the bank representatives can potentially come up with critical insights not only about the company but also the market in which they operate in. This, in turn, assists them to make better investment decisions as related to the field of study. In this context, it is apparent that the essence of DFD is affirmed.

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    References
  • Chen, Y. L. (2009). Data Flow Diagram. In Modeling and Analysis of Enterprise and Information Systems (pp. 85-97). Berlin, Heidelberg: Springer.
  • Matt, D. (2014). Data Flow Diagram with Examples & Tips. Retrieved from http://www.modernanalyst.com/Resources/Articles/tabid/115/ID/2015/Data-Flow-Diagram-with-Examples-Tips.aspx