Define Data Processing? Why data processing is important for Business?


Computer NotesData Processing:

Data processing referred to operation carried out on data to convert it into useful information.


Electronic data processing is growing because it is capable of handling a vast amount of data efficiently and accurately.

Following are the demands faced by business that create this need and which are as follow

 Number of Transactions:

Big firms naturally have many transactions, so the computer with high speed and capacity can process thousands of records of business within a minute.


By using computers business companies can reduce their cost. If a company hires 50 persons for any accounts job, same operation can be done by using 5 to 6 computers.


The use of computers in business will not only save the time but also it will help to produce the accurate results without errors. If there are any errors they are automatically highlighted at initial stages and computer user can correct them.


Every company wants that the flow of data should be very fast. The computer technology is also increasing fastly. Pentium-IV is very Fast, Accurate and giving more facilities to computer in comparison with 486 or P-I.


The business people demand selectivity in the ways that data are reported specially computers can reorder a collection of data into many different forms.

(e.g) Data can be arrange Ascending or Descending before processing


Organized and processed data is called information. Information is meaningful and use to take intelligent decisions so that desired results can be generated. Computer technology is very helpful to convert raw data into useful information in business organizations.

 Record Keeping:

It is very important to have a complete record of data which is going to be processed by the computer. To achieve 100% results and after achieving those results the organization will save that Information & Data for future decision making and also will compare it with previous year results.


It is important to maintain that the computer users have to take care of those computers in order to generate better results in future also and increase their efficiency by giving in time maintenance.

Allocation of Job:

Many business people believe that human resources should be applied to those tasks for which humans are qualified for them. In other words we can say “The right person for right job”.

(e.g) If a person is hired in any organization for the job of “Data Entry” but after joining the company aspects from to manage Lab and Networking, it will be wrong job allocation.


Internet is also becoming the need of business environment. Especially now a days, when the business transactions is done online, most of the business organizations have their own websites.

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