Tuesday, 14 January 2014

Know your business needs for data processing

Data processing as the name suggests, is putting together and manipulating data to produce meaningful information. The term is more used for business or commercial organization, to refer to some class of data processing applications. The right combination of data processing is specific to each business, and establishing the right mix is essential. Both automated and manual data processing has its pros and cons and which need to be taken care duly. As the name suggests, manual data processing is the traditional method which make use of pen, paper, chalk requires human effort for recording, sorting, and processing of data which can be boring, tedious, time consuming and more chances of human error.

And automated processing of data is use of electronic systems, programs in which data is fed and retrieved after being processed. Some of the examples of automated data systems are recognition technology and manual data processing. The accuracy of automated systems have been questioned since the technology was first introduced, the performance of a system is determined by information which is 100% correctly processed at a specified amount of time. Manual keying, is also not error-proof and hence the baseline of comparison.

Recognition technology does not face problems of human factor, but the performance depends on issues, such as application, quality of images etc. It is important to understand the application and its limitations for best results. Optimal Character recognition, and intelligent character recognition are for high levels of accuracy when working with texts such as boxes, lines and combs. A high quality machine print can give nearly 99.9% accuracy which is high enough to be used without additional controls. But the level of accuracy can differ with machine font.

Although manual data processing has been in use for millennia, the term has been used more since the 1950s. For example, book keeping for an organization involves report making such as balance sheets and cash flow management, and posting transactions. The methods which were completely manual were augmented with the use of mechanical or electronic devices. The person which performed functions of calculation manually or by using a device was called “computer”.

Because manual data processing was tedious, required much longer duration of time for processing complex data automatic data processing evolved. The term automatic data processing was used for operations, which were performed by means of unit record equipment that used applications such as Herman Hollerith’s application for punch card which was used in the 1890 United States Census. Computerized or electronics data processing further represents evolution, in which the computer replaced several pieces of equipment.

The term “data processing” is subsumed in the new usage of Information Technology instead. In the new context, data processing refers to use of older technologies and a negative connotation is associated with the same. In commercial data processing, the volume of data is large with less computation operations and large volume of output. In science and engineering, data processing and Information processing are too broad to be used, the term “data analysis” is used instead. Data analysis makes use of accurate algorithms and statistical calculations which are not observed in typical business environments.

Of all the advantages of automated data processing over manual is, it can process and forms and documents quickly and efficiently. The software recognizes the characters on the form, which can be transferred to electronic format. The accuracy of automated systems ensures, data is rightly extracted and used in the correct field. This helps employees, use their competencies in other capacities instead pore over forms for repetitive data entry.