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Electronic Data Processing In Business


Today, no business can exist without information. There is no more business without information. To improve the business there is a need to improve data processing and information system. Now it’s the age of competition that involves information technology for faster and accurate data processing. These days computer is playing a main role in every field of life. It is also playing a central role in business. In business, a large amount of data has to be processed daily. It is impossible to process such a large amount of data without a computer.

Explain importance / need of electronic data processing in business
Explain importance / need of electronic data processing in business

We know that a computer can process data accurately and quickly. The need of data processing in business is clear. Following are the reasons:


An organization cannot exist without records. Record keeping is a difficult and complex problem. Electronic data processing has simplified it. Receiving, storing, processing and retrieving records is now a matter of seconds.


We can access desired record rapidly. In manual processing it will take many days to search for specific records. With the help of computer records can be searched with in seconds or minutes.


Electronic data processing is used to maintain a database for a business organization. Database is reliable resource of data and information.



Users can send emails, faxes and access internet.


In electronic data processing, the cost of processing is 10 times less than that of manual or mechanical data processing. A few can do the whole data processing with the help of computer.


In a large business organization, thousands of records are processed daily. This cannot be done manually. Computer can do this work at a great speed.


Speed with accuracy is the prime goal of data processing. Computer can large amount of data with 100 % accuracy. Errors and mistakes are associated with human beings.


In manual data processing there are repetition of same records in many files. But in electronic data processing there is no repetition of records.


In every business organization there is record keeping for pay of employees, stocks and accounting system. These systems can be maintained efficiently with electronic data processing.


The business data is analyzed by computer. Computer generates reports that are used by management for decision-making.

You would also like to read:

Define data and information with examples 
Explain difference between data and information
Explain data processing cycle. What is data processing cycle?
Explain Different types of data processing. What are different levels of data processing?
What is the need / importance of electronic data processing in business?


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