Business

Everything you need to know about Data Processing

Data processing is a term used to collect, store, and retrieve raw data to produce informative information.

Data processing is vital for companies and organizations that uses computers to store large amounts of data for later use. This can be done by a data analyst who can manipulate and keep the data in the safest way possible.

Mainly the data to be processed is obtained in a raw format, and processing helps make the information easy to comprehend for its users. It will be simplified into documents, charts, and graphs for use.

Let's dig in for more knowledge served in our article down below as follows;

Types of data processing

There are many types of data processing depending on what you are working on. Let's look at some of them and how they work;

  • Business data processing - This is a type of data processing specifically meant for businesses with standardized rules to curb errors. It's done by inputting data into the computer for an output achieved through fewer processes.
  • Bulk processing - This type of data is meant to continuously process many different data at the same time in bulk form.
  • Online processing - These are data fed to the computer system once they are available for processing.
  • Scientific data processing - Its a type of data that can input and output fewer data and takes a while to process since it has to give accurate results. They have to go through a long process since the data fed to the system must be verified, categorized, and standardized for accuracy.

Methods of data processing

There are three types of data processing methods;

  1. Manual data processing

This is where by all types of data are processed manually by you as a human being. Whether they are calculations or documents to be done, you are performing them without involving any computer or other electronic devices.

  1. Mechanical data processing

Mechanical data processing is the opposite of manual processing because the data to be processed is done by the use of electronics and mechanical devices. It's much easier, given machines are performing the work for you instead, meaning minimum errors.

  1. Electronic data processing

If you are using an electronic data processor, it means you are getting results that are more accurate and reliable. This process has been made achievable by computer programs for better results.

What is a data processing cycle?

The data processing cycle is the process whereby raw data is input into the CPU to be processed from its raw form into a useful form that users can easily understand. 

Stages of data processing

We have six stages of data processing you should know, as stated down below;

  1. Data collection

This is an important first step to have in mind before going any further. Do you have the data you want to be processed? If not, you will have to provide it for the processing to be successful. 

  1. Preparation

Preparation is achieved by confirming the raw data to be processed for mistakes and any other obstacles that could result in an error.

  1. Input 

Input is whereby you are supposed to enter your raw data into the computer in order for it to convert into an understandable language using a CRM system.

  1. Process

Processing data is a stage whereby raw data fed to your computer is processed so that information loaded can be understood. This can be done using the computer’s AI algorithm for an accurate result.

  1. Output

Output data is the final result achieved. At this stage, you can view and read the processed data in whichever format you want it to show up. It could be graphs, documents, or videos, among other ways, that prove to be meaningful to you as a user.

  1. Storage

Storage is the last stage, whereby your data has gone through those processes, and you have seen the outcome. Now what's remaining is for you to store it permanently for later use.

What are the benefits of Data Processing

Data processing is an important part of the business process in Kenya. It carries with it a lot of benefits, such as;

 1. Processing Financial Data

 Through processing invoices, inventory tracking, and making pricing decisions. It can also be used to process payables and receivables.

2. Processing Customer Data 

By processing customers’ orders, keeping track of their contact information, and making customer service decisions. It can also be used to process customer complaints.

 3. Processing Employee Data 

Through processing employees’ time sheets, tracking and keeping their vacation days, or deciding on employees' benefits. Employee data processing can also be used to process employee performance reviews.

 4. Research

It can be used to process data for statistical analysis, develop new products, or evaluate marketing campaigns' effectiveness. Data processing for research can also be used to process data for clinical trials. 

5. Legal purposes 

Data processing for legal purposes can be used to process data for court cases, keep track of legal documents, or make litigation decisions. Data processing for lawful purposes can also be used to process data for intellectual property disputes. 

6. Security

Data processing for security can be used to process data for background checks, to keep track of security incidents, or to make decisions about security procedures. It can also be used to process data for fraud detection. 

7. Environmental purposes  

Data processing for environmental purposes can be used to process data for environmental impact studies, keep track of environmental conditions, or make decisions about environmental policy. It can also be used to process data for environmental compliance.

8. Quality control purposes

Data processing for quality control can be used to process data for product quality assurances, keep track of quality control procedures, make decisions about product recalls, and process data for customer satisfaction surveys. 

9. Human resources  

Data processing for human resources can be used to process data for employee recruitment, keep track of employee training, or make decisions about employee benefits and performance reviews.

10. Marketing

Data processing for marketing can be used to process market research data, track marketing campaigns, make decisions about product placement, and process data for customer loyalty programs. 

Conclusion

Data processing is the way to go for all businesses and companies looking for better and perfect results. Data processing is the future, and if you haven't thought about it, it's high time you go for it. To develop an exemplary data processing system, you need to understand the type of data you are dealing with as an analyst working for your organization.

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Nancy Njeri
November 23, 2022

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