Data processing can be defined as the processing of data to make it more usable and meaningful and thus converting into information. It covers all activities required for generating information from data. In order to generate information from data, certain set of processes have to be performed. Further these processes have to be performed in a sequence to get the desired result. Thus data processing covers all activities required for generating information from data.
Commercial data processing is mainly concerned with business and commercial activities. Many of the business transactions are routine in nature and hence they are repetitive. However it involves large volume of data.
Following are the steps in the process of generation and communication of information:
1. Origination:
The first step involved in the processing of information is the origination of the data to be processed. The main source of records used in data processing is sales orders, purchase orders or employee time cards stored in magnetic tapes, disks and terminals.
2. Input:
The second function involved in the processing of data is the input of data stored on these source documents into the data processing system. The data records stored in secondary devises is now fed into the computer for processing.
3. Processing:
In modern times computer and other electronic devices are used for processing data. Suitable programmes have to be used for processing data and to get suitable output. Data should be sorted and verified before processing. Processing involves calculation, comparison, filtering and modification of data according to user’s requirements.
4. Storing:
The result of processing of data must be kept for future reference. This function is called storage. In electronic data processing system various magnetic medias such as magnetic tapes and disks are used for storing large volume of data.
5. Data retrieval:
With the introduction of information technology users will be able to search and retrieve files records on-line with direct access devices.
6. Production of documents:
Copies of documents and reports are prepared as an output of the information system. With the help of computers it is possible to produce multiple copies using output devices such as printers.
7. Data communication:
In the past information was moved physically from one place to another. But today it travels through cables electronically. On-line transmission of information is possible in electronic data processing system.
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