Electronic Data Processing is nothing but the synonym of IS(Information Services or Systems) and MIS (Management Information Systems or
Services). Electronic Processing Data not only means the processing of
commercial data and storing them as documents but also includes transferring
information from paper into digital format with the use of a computer involving
electronic communication. Electronic Data Processing makes effective and
efficient use of computers and various other forms of electronic communication
to collect, manipulate, record, classify, and summarize data. Electronic Data Processing thus canbe defined as the processing of data using electronic communication methods
like computers, calculators, servers, and other similar electronic data
processing equipment. Electronic Data Processing refers to a process comprising
of 3 steps such as:
- Input – The available data is entered into the computer through input devices such as keyboard, mouse, scanner, digitizer, etc.
- Processing – The data entered and available is manipulated via software programs for convenience which include formula, code
application, translation, and encryption, etc. - Output – The data which has been processed already is made available to the user in multiple forms
such as reports, video, audio, graphs, documents, etc.
Thus, Electronic Data Processing is thepractice of storing, processing, retrieving, maintaining, and sharing when
required information electronically, which involves multiple different ways of
processing data electronically, which in turn helps to reduce the development
and maintenance cost of day-to-day operations of a business in a dynamic
industry.
Advantages of ElectronicData Processing
The main advantage of EDP systems is that they enable therapid processing and analysis of large volumes of data. EDP tools also reduce
the cost of paper document management and storage as they remove the need for
physical storage locations, printing, couriering, etc.
Many EDP tools support user-friendly document search andstreamline business workflows. Users can collaborate on projects and track the
status of data. They can gain useful insights for their specific requirements
in a format that makes the most sense to them.
EDP tools reduce the need for manual effort and alsominimize the presence of redundant or bad data, which enables better enterprise
decision-making. Finally, some EDP systems can store vast quantities of data
and make it readily available for further analysis and presentation.
