What is Data Processing?

Data processing is simply the conversion of raw data to meaningful information through a
process. Data is manipulated to produce results that lead to a resolution of a problem or
improvement of an existing situation. Similar to a production process, it follows a cycle where
inputs (raw data) are fed to a process (computer systems, software, etc.) to produce output
(information and insights).

Generally, organizations employ computer systems to carry out a series of operations on the data
in order to present, interpret, or obtain information. The process includes activities like data
entry, summary, calculation, storage, etc. Useful and informative output is presented in various
appropriate forms such as diagrams, reports, graphics, etc.

Stages of the Data Processing Cycle

1) Collection is the first stage of the cycle, and is very crucial, since the quality of data collected
will impact heavily on the output. The collection process needs to ensure that the data gathered
are both defined and accurate, so that subsequent decisions based on the findings are valid. This
stage provides both the baseline from which to measure, and a target on what to improve.
Some types of data collection include census (data collection about everything in a group
or statistical population), sample survey (collection method that includes only part of the total
population), and administrative by-product (data collection is a byproduct of an organization’s
day-to-day operations).

2) Preparation is the manipulation of data into a form suitable for further analysis and
processing. Raw data cannot be processed and must be checked for accuracy. Preparation is
about constructing a dataset from one or more data sources to be used for further exploration and
processing. Analyzing data that has not been carefully screened for problems can produce highly
misleading results that are heavily dependent on the quality of data prepared.
3) Input is the task where verified data is coded or converted into machine readable form so that
it can be processed through a computer. Data entry is done through the use of a keyboard,
digitizer, scanner, or data entry from an existing source. This time-consuming process requires
speed and accuracy. Most data need to follow a formal and strict syntax since a great deal of
processing power is required to breakdown the complex data at this stage. Due to the costs, many
businesses are resorting to outsource this stage.
4) Processing is when the data is subjected to various means and methods of manipulation, the
point where a computer program is being executed, and it contains the program code and its
current activity. The process may be made up of multiple threads of execution that
simultaneously execute instructions, depending on the operating system. While a computer
program is a passive collection of instructions, a process is the actual execution of those
instructions. Many software programs are available for processing large volumes of data within
very short periods.
5) Output and interpretation is the stage where processed information is now transmitted to the
user. Output is presented to users in various report formats like printed report, audio, video, or on
monitor. Output need to be interpreted so that it can provide meaningful information that will
guide future decisions of the company.
6) Storage is the last stage in the data processing cycle, where data, instruction and information
are held for future use. The importance of this cycle is that it allows quick access and retrieval of
 the processed information, allowing it to be passed on to the next stage directly, when needed.
Every computer uses storage to hold system and application software.
The Data Processing Cycle is a series of steps carried out to extract information from raw data.
Although each step must be taken in order, the order is cyclic. The output and storage stage can
lead to the repeat of the data collection stage, resulting in another cycle of data processing. The
cycle provides a view on how the data travels and transforms from collection to interpretation,
and ultimately, used in effective business decisions.

Data Processing Methods

1. Batch Processing.

Batch processing is a technique in which data to be processed or programs to be executed are

collected into groups to permit convenient, efficient, and serial processing. It is the simplest form
of data processing. With this method, data is entered to the information flow in large volumes, or
batches. That is, the processing by computer is performed periodically, at specified time intervals
(weekly, monthly, etc) when large volumes are accumulated. Daily transactions in a business
establishment, for example, may be batch processed on a weekly basis. Instead of being
processed periodically when a sufficient volume has been accumulated.

Advantages of batch processing are:

 Economical when a large volume of data must be processed and

 The most appropriate method for those applications (e.g., payroll) where the delay caused by
accumulating data into batches does not reduce the value of the information.

Limitations of batch processing are:

 It requires sorting prior to processing

 Reduce timeliness in some instances and
 Requires sequential file organization.

2. On-line Processing.

The term “on line” refers to equipment or devices under the direct control of the central
processing unit (CPU) of a computer. An on-line operation, then, is one which uses devices
directly connected to the CPU either for data entry or inquiry purposes. That is, with a terminal
we can either enter data or inquire about the status of some record or file that is stored by the
computer.

3. Real-time Processing.

Real- time processing is a method of data processing which has the capability of a fast-response
to obtain data from an activity or a physical process, perform computations, and return a
response rapidly enough to affect the outcome of the activity or process. In order words, the
processing of data is done immediately.
 Airline reservation systems, for example, require immediate processing. Each time a ticket is
issued or cancelled, or a plane’s schedule is altered, the data must be immediately entered sing is
also used in keeping track of the availability of motel and hotel rooms, and in immediate
updating of customer records in saving banks.

4. Distributed Processing. The most complex level of computer processing, distributed

processing, generally consists of remote terminals linked to a large central computer system to
help the user conduct inquiries about accounts, process jobs, or other data processing operations.
Distributed computer-communications network is similar in some respects to public utilities such
as telephone and electric companies – e.g., electric power plants are geographically dispersed
and the energy resources generated are transmitted through a coordinating regional network or
grid to the places where the energy resources are needed.

Some of the advantages of distributed processing system are:

 central processor idle time is reduced.

 sophisticated computers and a growing library of applications programs may be immediately
available to end-users whenever needed.
 skilled professionals are available to help users develop their own specialized applications.
 managers may be able to react more rapidly to new developments and interact with the system
in order to seek solutions to unusual problems.

The possible disadvantages are:

 the reliability and the cost of data communication facilities used, and the cost and quality of
the computing service received, may be disappointing in some cases.
 input/output terminals are often rather slow and inefficient.
 provisions for protecting the confidentially and integrity of user programs and data files are
generally ineffective against a skilled penetrator.

computer file

A computer file can be thought of much like a traditional file that one would find in an office's
file cabinet. Just like an office file, information in a computer file could consist of basically
anything.

File Access Method

The way by which information/data can be retrieved. There are two method of file
accesss:
1. Direct Access
2. Sequential Access
Direct Access
This access method the information/data stored on a device can be accessed randomly
and immediately irrespective to the order it was stored. The data with this access method
is quicker than sequential access. This is also known as random access method. For
example Hard disk, Flash Memory
Sequential Access
This access method the information/data stored on a device is accessed in the exact order
in which it was stored. Sequential access methods are seen in older storage devices such
as magnetic tape.
File Organization Method
The process that involves how data/information is stored so file access could be as easy
and quickly as possible. Three main ways of file organization:
1. Sequential
2. Index-Sequential
3. Random
Sequential file organization
All records are stored in some sort of order (ascending, descending, alphabetical). The
order is based on a field in the record. For example a file holding the records of
employeeID, date of birth and address. The employee ID is used and records stored is
group accordingly (ascending/descending). Can be used with both direct and sequential
access.

Index-Sequential organization
The records is stores in some order but there is a second file called the index-file that
indicates where exactly certain key points. Can not be used with sequential access
method.

Random file organization

The records are stored randomly but each record has its own specific position on the disk
(address). With this method no time could be wasted searching for a file. Instead it jumps
to the exact position and access the data/information. Can only be used with direct access
access method.