Electronic Data Processing In Business

NEED OF ELECTRONIC DATA PROCESSING

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

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

1) RECORD KEEPING

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.

2) ACCESSING AND SEARCHING RECORDS

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.

3) DATABASE SYSTEMS

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

4) COMMUNICATION

 

Users can send emails, faxes and access internet.

5) COST

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.

6) SPEED

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.

7) ACCURACY

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.

8) NO REPETITION

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

9) PAYROLL, ACCOUNTING, STOCK SYSTEMS

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.

10) REPORTS

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

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Explain Different Types of Data Processing and Advantages Disadvantages

Today we will discuss different types or levels of data processing in detail. Let us define Data processing first.

DATA PROCESSING

Data processing is the sequence of operations performed on data to convert it into useful information. These operations may be arithmetic, statistical or logical operations. We can
arrange or classify data. We can send and receive data from one point to another.

Explain different types of data processing

TYPES OF DATA PROCESSING (OR) LEVELS OF DATA PROCESSING)

There are three types of data processing.
1) Manual data processing
2) Mechanical data processing
3) Electronic data processing

We may also use the term Levels of data processing. First level of data processing was manual data processing when there were no calculating devices (before the invention of calculators). Therefore all processing jobs were performed manually by hand with the help of pen , paper and mind.

In second level of data processing, machines like calculators were used for data processing. This level is called mechanical data processing

In third level of data processing , computers were used for data processing hence the name Electronic data processing. Now a days all data processing is performed with the help of computers.

Although a poor shop keeper with a small income and sale can use manual data processing even today. A person running a shop like book shop can use calculator or computer as the resources allow.

let us discuss types of data processing one by one in detail:

1) Manual data processing

In manual data processing data is processed manually. No machine or tool is used.

Types of data processing - Manual data processing

All the calculations on data are performed manually. This is a slow method and errors may occur. This is an old method. It was used before the invention of calculators. But data is still processed manually in many small shops.
Example: A book seller ( a small book shop ) records his daily transactions manually. He prepares bills by pen,paper and carbon paper ( no doubt, brain is the main data processor in this case ). At the end of day he will use carbon copies made on a particular date to know how many books he sold and how much income he got.

Advantages of Manual Data Processing

1. It is a low cost method of data processing since the tools required to perform manual data processing are just pen and paper only.

Disadvantages of Manual Data Processing

1. Manual Data Processing method is the slowest of all types of data processing.
2. This method is more error prone. Chances of errors in results produced by manual data processing are more than other two methods.
3. Manual data processing is a time consuming process. More is the amount of data , more is the time required to process data.

2) Mechanical Data Processing

Types of data processing : Mechanical data Processing

In mechanical data processing data is processed with the help of  devices or machines. These machines that help the people in data processing may be calculators and type writers etc. Obviously, this method is faster easier and more accurate than manual data processing.


Example: Book seller can use a calculator to speed up his data processing system. There will be a less chance of errors in calculations. Bill calculations will be much more faster with a calculator and easier too.

Advantages of Mechanical Data Processing

1. Mechanical data processing is more accurate method of data processing, since it uses machines like calculators for accurate data processing and results.
2. Mechanical data processing is less time consuming than manual data processing. Due to the use of calculator, calculations are performed quickly.
3. There are less chances of error in calculations.

Disadvantages of Mechanical data Processing

1. It is more costly method that manual data processing.
2. It is not automated process, with the increase of data, number of calculations increases making the whole process difficult and complex.

3) Electronic data processing

It is the latest and fastest method of data processing. Data is processed with the help of computer.

Types of data processing : Electronic data Processing

First of all, data and set of instructions are given to the computer. Computer gives output results after processing the data according to instructions. This method of data processing is very fast and accurate. Electronic data processing is used in banks and business firms, Government offices, colleges, schools, universities, businesses and other institutes. Electronic data processing is being used in almost every field of life. Example:Suppose there are 800 students in a college. There is a manual library system in this college. If we want to know which students have not returned books since one year? We will have to search registers for 800 students’ record. But computer can do this job with in seconds.

Advantages of Electronic Data Processing

In short, we can say that:

Electronic data processing is the fastest and most efficient method of data processing 

1. Electronic data processing is the fastest and most efficient method of data processing  
2. Electronic data processing is less time consuming of all other methods
3. Electronic data processing systems can process large amounts of data easily
4. Electronic data processing can present information in more attractive way
5. Electronic data processing will give 100 % correct results, without any errors if input and instructions are accurate.

Disadvantages of Electronic Data Processing

1. Electronic data processing is the most expensive method among all other types of data processing.
2. High setup Cost: Computer systems - Hardware and software requires a lot of money to setup and to operate further.
3. Qualified Computer personnel are required to run an electronic data processing system which results in more money requirements for employee pay roll systems.

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Explain Different Types Of Data

DATA

Data is the collection of raw facts and figures. It is without any proper meaning.
Data may be collection of words, numbers, graphics or sounds.

What is data? Explain different types of data

Examples of Data

1) Student Data on Admission Forms

When students get admission in a college. They fill admission form. This form     contains raw facts (data of student) like name, father’s name, address of student etc.

2)    Data of Citizens

During census, data of all citizens is collected.

3)    Survey Data

Different companies collect data by survey to know the opinion of people about their product.

4)    Students Examination data

In examination data about obtained marks of different subjects for all students is collected.   

Different Types Of Data

There are following main types of Data.

1)    NUMERIC DATA

Numeric data consists of 0 to 9 digits, + and – sign and decimal point etc.
For example, 10, 78, 90.50, -56 etc

2)    ALPHABETIC DATA

It consists of all alphabetic letters A to Z, a to z and blank space etc. For example, Pakistan, Ahmad, Abdul Rahim, GCC , RYK, Ahmad etc.

3)    ALPHANUMERIC DATA

It consists of alphabet letters, digits and special characters like #, $, % etc.
For example, House Number 10-A, 14-August-1947, F-16 etc.
   

4)   GRAPHIC DATA   

Graphic data or image data consists of charts, graphs and images etc. For example a collection of maps of countries, a collection of family pictures etc.

5)    AUDIO DATA

Audio data consists of sounds and voices. For example audio naat, radio program, radio news, audio songs etc.

6)    VIDEO DATA

Video data consists of moving pictures. For example movie, TV dram, TV news etc.

7)    MIXED DATA

Mixed data consists of combined data of two or more types. For example, TV drama consists of audio as well as video data. Another example of mixed data is the admission form of students. Because students provide different types of data on admission form like numeric data, alphabetic data, alpha numeric data and graphic/image  data etc. as explained below:
Numeric data: marks obtained by student
Alphabetic data: Name, father name etc.
Alpha numeric data: Address
Graphic data: Picture of student

This is all about Different Types of  Data.
Thanks!

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?