Answer
A data flow diagram (DFD) is a graphical representation of the “flow” of data through an information system. DFDs can also be used for the visualization of data processing (structured design).
On a DFD, data items flow from an external data source or an internal data store to an internal data store or an external data sink, via an internal process.
A DFD provides no information about the timing of processes, or about whether processes will operate in sequence or in parallel. It is therefore quite different from a flowchart, which shows the flow of control through an algorithm, allowing a reader to determine what operations will be performed, in what order, and under what circumstances, but not what kinds of data will be input to and output from the system, nor where the data will come from and go to, nor where the data will be stored (all of which are shown on a DFD).
A DFD usually comprises of four components. These four components can be represented by four simple symbols. These symbols can be explained in detail as follows: External entities (source/destination of data) are represented by squares; Processes (input-processing-output) are represented by rectangles with rounded corners; Data Flows (physical or electronic data) are represented by arrows; and finally, Data Stores (physical or electronic like XML files) are represented by open-ended rectangles.
External Entity
An external entity is a source or destination of a data flow which is outside the area of study. Only those entities which originate or receive data are represented on a business process diagram. The symbol used is an rectangle containing a meaningful and unique identifier.
Process
A process shows a transformation or manipulation of data flows within the system. The symbol used is a rectangular box:
Data Flow
A data flow shows the flow of information from its source to its destination. A data flow is represented by a line, with arrowheads showing the direction of flow. Information always flows to or from a process and may be written, verbal or electronic. Each data flow may be referenced by the processes or data stores at its head and tail, or by a description of its contents.
Data Store
A data store is a holding place for information within the system:
It is represented by an open ended narrow rectangle. Data stores may be long-term files such as sales ledgers, or may be short-term accumulations: for example batches of documents that are waiting to be processed. Each data store should be given a reference followed by an arbitrary number.