Data Processing

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Definition: Data Processing

Data processing is "the collection (of facts and figures) and manipulation of items of data which conveys meaningful information.” Data processing can also be treated as information processing as whatever information is needed can be detectable by an observer.

The information in the data processing should be organized, validated and corrected as data is an integral part of all business processes. Data is the backbone of an organization that supports all activities (operations, marketing etc.) and without this one cannot run the business successfully. The reason for this is that the data helps to formulate effective strategies and to take effective decisions.


To enhance business activities, data should be made available in all possible meaningful forms in order to increase the accessibility and understanding of the same.


Data processing is the conversion of data from one format to another. It transforms plain data into valuable information and information into data. Data processing services, collects and record the raw data and then organize and convert it into sensible information that can be used further for business proceedings.

Data consists of facts and figures, based on which important conclusions can be drawn. The companies and organizations have access to this useful information and then they utilize it for doing strategic planning that increases the company’s revenue and decrease the costs, thus expanding the profit margins.

Data processing ensures that the data is authenticated and correct and presents the data in systematic manner in order to easily understand the information for further purposes.


Steps that are included in data processing:


A) Editing:

There is a difference between data and informative data. For example data available on the internet is of huge volume and the useful data has to be extracted from the same. Extracting relevant and informative data is one of the core procedures of data processing. After collecting the data from relevant sources, it is edited in order to discard the inappropriate data and to store relevant data.


B) Coding:

After the editing process, the available data is not in any specific order which looks like un-important data. To make it more sensible and useful, accumulated data needs to be aligned. The method of coding ensures the same and arranges data in a comprehendible format.


C) Data Entry:

After aligning the data, it is fed into the software that performs the eventual cross tabulation. Data entry professionals do the tasks efficiently.


D) Validation:

After the data entry, validation process comes into the picture. Data validation refers to the process of checking the collected and aligned data to ensure the usefulness of the data and to provide the quality levels to the data.

E) Tabulation:

This is the final step in data processing. In this the data is tabulated and arranged in a systematic format as per the need of organization/ business so that it can be further analyzed.


Hence, this concludes the definition of Data Processing along with its overview.


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