What is data processing

Definition of data processing

Data processing is a series of operations that use information to produce a result. Common data processing operations include data validation, sorting, classifying, calculating, interpreting, organizing, and transforming. Any use of computers to perform defined operations on data can be included in data processing.

Importance of data processing

The importance of data processing includes higher productivity and profits, better decisions, more accurate and reliable. For a company or a business, this task is extremely crucial as it helps to generate organized information that is easy to understand.

Data processing methods

Manual Data Processing – It totally depends on the brain capacity and efforts of the human being. Not a single device or one of the simplest is used to calculate data. Every calculation is done by the staff and there is a high possibility of errors. When you are running a full setup, you need to switch between the different jobs. This increases the chances of error. Manual data processing is slow and there is a higher probability of errors and omissions.

Mechanical Data Processing – Another type of data processing where the calculator does all the calculations. This type is called mechanical data processing. Although manual and mechanical data processing is obsolete today, there are some small organizations that cannot afford to have a full computerized setup. This requires them to use mechanical data processing.

Electronic data processing – The third modern and most common form of data processing is called electronic data processing. In this regard, all data is processed and calculated through computers and there is a negligible chance of errors and errors. There are several applications that are designed to process data and this technique is the fastest of the three classes. Electronic data processing methods also make it more organized, accurate, and less time consuming.


The following are illustrative examples of data processing.

  • A digital camera converts raw data from a sensor into a photographic file by applying a series of algorithms based on a color model.
  • A stock trading app converts data representing millions of stock transactions into a graph that a trader can quickly understand.
  • A website that accepts user-submitted media, such as videos, and converts it to a standard format for display to users.

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