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Data Processing: An Overview

Data processing involves collecting raw facts or data, processing that data by sorting, calculating, and organizing it, and producing useful information that can be used for decision making. It converts unorganized data into useful information by classifying, sorting, calculating, and storing the data. The key stages in data processing are data gathering, collation, input, processing, storage, and output. Data processing is important because it allows large volumes of data to be managed and processed efficiently to produce timely, accurate information needed for management decision making in today's competitive world.

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117 views2 pages

Data Processing: An Overview

Data processing involves collecting raw facts or data, processing that data by sorting, calculating, and organizing it, and producing useful information that can be used for decision making. It converts unorganized data into useful information by classifying, sorting, calculating, and storing the data. The key stages in data processing are data gathering, collation, input, processing, storage, and output. Data processing is important because it allows large volumes of data to be managed and processed efficiently to produce timely, accurate information needed for management decision making in today's competitive world.

Uploaded by

Austin Agbason
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Introduction to Data Processing

The term data means any basic fact which may be input to some processing
system. A processing system is one where computations, comparisons and
general manipulation of data are done. The processing may be people or
machine e.g. the computer. Information, on the other hand, is the end –
result of a processing system. The information is needed by management for
decision making. The relationship between data and information is shown in
the diagram below:
What is data processing?
Data processing is the task of using a collection of basic facts to produce
information, usually, it has no value in itself until it is subjected to analysis,
validations and comparisons with other data produce a result (information),
for example, a collection of weights of individuals do not turn useful
information for decision making.
However, when the set of data is processed such as searching for an
individual with a maximum or minimum weight or the weight of all
concerned in the study, information is produced.
Management can decide based on each information to assign special duties
to the fellow with the maximum or minimum weight. Other use could be
made on such information depending upon the situation prevailing on the
organization and their special needs.
Therefore, data processing is an operation on computer data which involves
the entering, sorting, updating and retrieving of information using a
computer.
Properties of data
1. Collected/Captured
2. Prepared
3. Presented
4. Precise
5. Complete
6. Accurate
7. Purposeful
8. Assigned
Data processing cycle
The data processing cycle describes the stages of data processing. It
involves the following stages:
Data gathering
Data collation
Input stage
Processing stage
Storage stage
Output stage
The element of data processing
Data is often required for various purposes. Even the same item of data may
be used in a great variety of ways depending upon the user’s objectives.
Most data processing work may be viewed as consisting of data, processor
and output. Usually, storage also features since both data and program
instructions need to be stored.
Data processing activities
Data processing activities involve the following:
1. Input: involves three steps; collection, verification/validation and coding
2. Processing: involves classification, sorting, calculating, converting and
storing
3. Output: involve retrieving, converting and communication.
Input activity:
COLLECTION: involves gathering data from various sources and assembling
it at one location.
VERIFICATION/VALIDATION: after data have been gathered, its accuracy and
completeness must be checked. This is an important step that helps to
eliminate the possibility of Garbage-In – Garbage-out(GIGO)
CODE: data must be converted into a machine-readable form so that it can
be entered into the processing system. Entering data via a computer
terminal and keyboard is one example of coding.
Processing activity:
1. CLASSIFICATION: Classification involves categorizing data according to
certain characteristics to make it meaningful to the user. For example, sales
data can be grouped according to the salesperson, product type, customer or
any other classification useful to management.
2. SORT: This involves arranging the grouped data element into a
predetermined sequence to facilitate processing. For example, an employee
number can be last. Sorting can be done on numbers, letters, special
characters or a combination of them. After it has been classified, data may
be stored.
3. CALCULATION: The arithmetical or logical manipulation of data is referred
to as calculation. Examples include computation of students’ grade –point
averages, customers’ bank balances and employee’s wages.
4. SUMMARISE: reducing a large amount of data to a concise, usable form is
called summarizing. The logical reduction of data is necessary to provide
useful information.
5. STORE: this involves the storing of data not immediately needed; data
could be stored on a disk, tape or CDROM.
Output activity:
This involves retrieving data, printing data and data communication.
Importance of data processing
The art of management is increasing as our society becomes more competitive
and more technologically advanced.
The volume of data being generated is correspondingly increasing and
becoming unmanageable.
On the other hand, the need to make information available, timely and
accurately is becoming more vital in the competitive world in which we have
found ourselves.
It is when a large volume of data is required to be processed speedily and
accurately that Data Processing becomes indispensable.

Common questions

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The processing stage of data is defined by activities such as classification, sorting, calculation, summarization, and data storage. These activities transform raw data by: - Classifying data into organized categories based on characteristics. - Sorting data into a sequence to facilitate easier access and further processing. - Performing calculations to derive new values like averages or totals. - Summarizing vast datasets into concise formats that aid in understanding. - Storing processed data for availability and use in decision-making .

Classification enhances the meaningfulness of data by categorizing it based on certain characteristics relevant to user needs. This activity organizes data in a way that makes it easier to understand and utilize. For example, sales data can be classified according to salesperson, product type, or customer, enabling management to analyze and make informed decisions based on these specific categories .

Summarization contributes to decision-making by reducing large volumes of data into a concise, usable form. This logical reduction helps management quickly assess information and draw insights without being overwhelmed by the volume of raw data. With summarized data, decision-makers can focus on key aspects necessary to strategize and plan effectively, thereby enhancing the decision-making process .

The data processing cycle encompasses the stages of data gathering, collation, input, processing, storage, and output. Each stage contributes significantly: - Data gathering involves collecting raw data from various sources. - Data collation checks and organizes the data for consistency. - Input entails transforming data into a format suitable for processing. - Processing involves classification, sorting, calculating, converting, and storing data into meaningful information. - Storage retains data and processed information for future access or use. - Output retrieves and communicates final information, completing the transformation of data to information .

The validation step is crucial during the input activity because it ensures the accuracy and completeness of data. This step is pivotal in preventing the Garbage-In Garbage-Out (GIGO) problem, where flawed input data leads to incorrect output. By verifying and validating data before processing, organizations maintain data integrity and reliability, which is essential for producing useful and accurate information .

The "Garbage-In Garbage-Out" (GIGO) concept illustrates the significance of data accuracy by highlighting that inaccurate or flawed input data will lead to incorrect and unusable output. This principle underscores the necessity of rigorous data validation and verification during data input. Ensuring accurate data entry prevents errors in the final information product, which is crucial for management's decision-making capabilities .

The properties of data such as completeness, accuracy, precision, and purposefulness directly affect its utility in decision-making processes. Each property ensures that data is reliable and relevant for producing insightful information. Accurate and complete data prevent errors in analysis, while precise and purposeful data align with specific organizational objectives, ultimately aiding management in making well-informed, contextually appropriate decisions .

The increasing volume of data in society heightens the importance of data processing, as it becomes necessary to manage, analyze, and convert vast amounts of raw data into actionable information. With more data being generated, the need for timely and accurate information for competitive advantage intensifies, making efficient data processing systems indispensable for organizational success. These systems allow for faster decision-making processes and the ability to handle complex datasets that are pivotal in today's technological and competitive landscape .

Converting data into a machine-readable form during the coding step is necessary because it allows the data to be processed by computational systems. When data is coded, for instance, through entry into a computer terminal, it becomes compatible with digital systems that automate processing tasks. This conversion is crucial for enabling efficient data manipulation and retrieval, which are pivotal in transforming data into informative outputs .

Storage plays the role of retaining both raw data and processed information for future access and use. It is essential because it allows for data preservation and retrieval, ensuring that data can be referenced during subsequent processing activities or historical analyses. Without proper storage, valuable information could be lost, and the efficiency and accuracy of data processing operations would be compromised .

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