DATA PROCESSING

Data processing is, broadly, "the collection and manipulation of

items of data to produce meaningful information." It can be
considered a subset of information processing, "the change
(processing) of information .
The term is often used more specifically in the context of a
business or other organization to refer to the class of commercial
data processing applications.[2]
FUNCTIONS
Data processing may involve various processes, including:

Validation Ensuring that supplied data is "clean, correct

and useful"

Sorting "arranging items in some sequence and/or in

different sets."

Summarization reducing detail data to its main points.

Aggregation combining multiple pieces of data.

Analysis
the
"collection,
organization,
interpretation and presentation of data.".

Reporting list detail or summary data or computed

information.

analysis,

Classification separates data into various categories.

TYPES OF DATA PROCESSING

Manual data processing

Although widespread use of the term data processing dates only
from the nineteen-fifties[3] data processing functions have been
performed manually for millennia.
For example, bookkeeping involves functions such as posting
transactions and producing reports like the balance sheetand
the cash flow statement. Completely manual methods were
augmented
by
the
application
of mechanical or
electronic calculators. A person whose job it was to perform
calculations manually or using a calculator was called a
"computer."
Automatic data processing
The term automatic data processing was applied to operations
performed by means of unit record equipment, such as Herman
Hollerith's application of punched card equipment for the 1890
United States Census. "Using Hollerith's punchcard equipment,
the Census Office was able to complete tabulating most of the
1890 census data in 2 to 3 years, compared with 7 to 8 years for
the 1880 census. ... It is also estimated that using Herman
Hollerith's system saved some $5 million in processing costs"[5] (in
1890 dollars) even with twice as many questions as in 1880.
Electronic data processing
Computerized
data
processing,
or Electronic
data
processing represents the further evolution, with the computer
taking the place of several independent pieces of equipment.
Further evolution
"Data processing (DP)" has also previously been used to refer to
the department within an organization responsible for the

operation of data processing applications.[6] The term data

processing has mostly been subsumed under the newer and
somewhat more general terminformation technology (IT)[ the Data
Processing Management Association (DPMA) changed its name
to the Association of Information Technology Professionals.
Nevertheless, the terms are roughly synonymous.

Applications
Commercial data processing
Commercial data processing involves a large volume of input
data, relatively few computational operations, and a large volume
of output. For example, an insurance company needs to keep
records on tens or hundreds of thousands of policies, print and
mail bills, and receive and post payments.
Data analysis

In a science or engineering field, the terms data

processing and information systems are considered too
broad, and the more specialized term data analysis is
typically used. Data analysis makes use of specialized and
highly accurate algorithms and statistical calculations that
are less often observed in the typical general business
environment.
DATA PROCESSING SYSTEM is a combination of
machines, people, and processes that for a set of inputs
produces a defined set of outputs.[1]The inputs and outputs
are interpreted as data, facts, information, ... depending on

the interpreter's relation to the system. A common

synonymous term is "information system".

A data processing system may involve some combination

of:

Conversion converting data to another format.

Validation Ensuring that supplied data is "clean,

correct and useful."

Sorting "arranging items in some sequence and/or

in different sets."

Summarization reducing detail data to its main

points.

Aggregation combining multiple pieces of data.

Analysis the "collection, organization, analysis,

interpretation and presentation of data.".

Reporting list detail or summary data or computed

information.

Types of data processing systems

By application area

Scientific data processing

Scientific data processing "usually involves a great deal of
computation (arithmetic and comparison operations) upon
a relatively small amount of input data, resulting in a small
volume of output." [3]
Commercial data processing
Commercial data processing "involves a large volume of
input data, relatively few computational operations, and a
large volume of output."[3]Accounting programs are the
prototypical
examples
of
data
processing
applications. Information systems (IS) is the field that
studies such organizational computer systems.
Data analysis
"Data analysis is a body of methods that help to describe
facts, detect patterns, develop explanations, and test
hypotheses."[4] For example, data analysis might be used
to look at sales and customer data to "identify connections
between products to allow for cross selling campaigns."[5]
By service type

Transaction processing systems

Information storage and retrieval systems

Command and control systems

Computing service systems

Process control systems

Message switching systems

Simple example
A very simple example of a data processing system is the
process of maintaining a check register. Transactions
checks and deposits are recorded as they occur and the
transactions are summarized to determine a current
balance. Monthly the data recorded in the register is
reconciled with a hopefully identical list of transactions
processed by the bank.
A more sophisticated record keeping system might further
identify the transactions for example deposits by source
or checks by type, such as charitable contributions. This
information might be used to obtain information like the
total of all contributions for the year.
The important thing about this example is that it is
a system, in which, all transactions are recorded
consistently, and the same method of bank reconciliation
is used each time.
Real-world example
This is a flowchart of a data processing system combining
manual and computerized processing to handle accounts
receivable, billing, andgeneral ledger

DATA MANAGEMENT TECHNOLOGY

The skills and equipment used
to
organize, secure, store and retrieve information. Data
management technology can refer to wide range of
techniques and database systems used for managing
information use and allocating access both within a
business and between entities.