DATA PROCESSING AND ITS TYPES ,STEPS .

Whether you use the internet to learn about a certain topic, complete financial
transactions online, order food, etc., data is being generated every single second. The
use of social media, online shopping and video streaming services have all added to the
increase in the amount of data. And in order to utilize and get insights from such a huge
amount of data - data processing comes into play. Moving forward, let us understand
what is data processing.

What Is Data Processing?

Data in its raw form is not useful to any organization. Data processing is the method of
collecting raw data and translating it into usable information. It is usually performed in a
step-by-step process by a team of data scientists and data engineers in an organization.
The raw data is collected, filtered, sorted, processed, analyzed, stored, and then
presented in a readable format.

Data processing is essential for organizations to create better business strategies and
increase their competitive edge. By converting the data into readable formats like
graphs, charts, and documents, employees throughout the organization can understand
and use the data.

All About the Data Processing Cycle

The data processing cycle consists of a series of steps where raw data (input) is fed
into a system to produce actionable insights (output). Each step is taken in a specific
order, but the entire process is repeated in a cyclic manner. The first data processing
cycle's output can be stored and fed as the input for the next cycle, as the illustration
below shows us.

Generally, there are six main steps in the data processing cycle:

Step 1: Collection

The collection of raw data is the first step of the data processing cycle. The type of raw
data collected has a huge impact on the output produced. Hence, raw data should be
gathered from defined and accurate sources so that the subsequent findings are valid
and usable. Raw data can include monetary figures, website cookies, profit/loss
statements of a company, user behavior, etc.

Step 2: Preparation

Data preparation or data cleaning is the process of sorting and filtering the raw data to
remove unnecessary and inaccurate data. Raw data is checked for errors, duplication,
miscalculations or missing data, and transformed into a suitable form for further
analysis and processing. This is done to ensure that only the highest quality data is fed
into the processing unit.

Step 3: Input

In this step, the raw data is converted into machine readable form and fed into the
processing unit. This can be in the form of data entry through a keyboard, scanner or
any other input source.

Step 4: Data Processing

In this step, the raw data is subjected to various data processing methods using
machine learning and artificial intelligence algorithms to generate a desirable output.
This step may vary slightly from process to process depending on the source of data
being processed (data lakes, online databases, connected devices, etc.) and the
intended use of the output.

Step 5: Output

The data is finally transmitted and displayed to the user in a readable form like graphs,
tables, vector files, audio, video, documents, etc. This output can be stored and further
processed in the next data processing cycle.

Step 6: Storage

The last step of the data processing cycle is storage, where data and metadata are
stored for further use. This allows for quick access and retrieval of information
whenever needed, and also allows it to be used as input in the next data processing
cycle directly.

What is Data Processing: Types of Data Processing

There are different types of data processing based on the source of data and the steps
taken by the processing unit to generate an output. There is no one-size-fits-all method
that can be used for processing raw data.

Type Uses

Data is collected and processed

Batch Processing in batches. Used for large
amounts of data.
 Eg: payroll system

Data is processed within

seconds when the input is given.
Used for small amounts of data.
Real-time Processing

Eg: withdrawing money from

ATM

Data is automatically fed into the

CPU as soon as it becomes
available. Used for continuous
Online Processing
processing of data.

Eg: barcode scanning

Data is broken down into frames

and processed using two or
more CPUs within a single
Multiprocessing computer system. Also known
as parallel processing.

Eg: weather forecasting

 Allocates computer resources
Time-sharing and data in time slots to several
users simultaneously.

Whether you use the internet to learn about a certain topic, complete financial
transactions online, order food, etc., data is being generated every single second. The
use of social media, online shopping and video streaming services have all added to the
increase in the amount of data. And in order to utilize and get insights from such a huge
amount of data - data processing comes into play. Moving forward, let us understand
what is data processing.

What Is Data Processing?

Data in its raw form is not useful to any organization. Data processing is the method of
collecting raw data and translating it into usable information. It is usually performed in a
step-by-step process by a team of data scientists and data engineers in an organization.
The raw data is collected, filtered, sorted, processed, analyzed, stored, and then
presented in a readable format.

Data processing is essential for organizations to create better business strategies and
increase their competitive edge. By converting the data into readable formats like
graphs, charts, and documents, employees throughout the organization can understand
and use the data.

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Now that we’ve established what we mean by data processing, let’s examine the data
processing cycle.
All About the Data Processing Cycle

The data processing cycle consists of a series of steps where raw data (input) is fed
into a system to produce actionable insights (output). Each step is taken in a specific
order, but the entire process is repeated in a cyclic manner. The first data processing
cycle's output can be stored and fed as the input for the next cycle, as the illustration
below shows us.

Fig: Data processing cycle (source)

Generally, there are six main steps in the data processing cycle:

Step 1: Collection

The collection of raw data is the first step of the data processing cycle. The type of raw
data collected has a huge impact on the output produced. Hence, raw data should be
gathered from defined and accurate sources so that the subsequent findings are valid
and usable. Raw data can include monetary figures, website cookies, profit/loss
statements of a company, user behavior, etc.
Step 2: Preparation

Data preparation or data cleaning is the process of sorting and filtering the raw data to
remove unnecessary and inaccurate data. Raw data is checked for errors, duplication,
miscalculations or missing data, and transformed into a suitable form for further
analysis and processing. This is done to ensure that only the highest quality data is fed
into the processing unit.

The purpose of this step to remove bad data (redundant, incomplete, or incorrect data)
so as to begin assembling high-quality information so that it can be used in the best
possible way for business intelligence.

Step 3: Input

In this step, the raw data is converted into machine readable form and fed into the
processing unit. This can be in the form of data entry through a keyboard, scanner or
any other input source.

Step 4: Data Processing

In this step, the raw data is subjected to various data processing methods using
machine learning and artificial intelligence algorithms to generate a desirable output.
This step may vary slightly from process to process depending on the source of data
being processed (data lakes, online databases, connected devices, etc.) and the
intended use of the output.

Also Read: Top 10 Machine Learning Algorithms For Beginners

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Step 5: Output

The data is finally transmitted and displayed to the user in a readable form like graphs,
tables, vector files, audio, video, documents, etc. This output can be stored and further
processed in the next data processing cycle.

Step 6: Storage

The last step of the data processing cycle is storage, where data and metadata are
stored for further use. This allows for quick access and retrieval of information
whenever needed, and also allows it to be used as input in the next data processing
cycle directly.

Now that we have learned what is data processing and its cycle, now we can look at the
types.

What is Data Processing: Types of Data Processing

There are different types of data processing based on the source of data and the steps
taken by the processing unit to generate an output. There is no one-size-fits-all method
that can be used for processing raw data.

Type Uses

Data is collected and processed

Batch Processing in batches. Used for large
amounts of data.
 Eg: payroll system

Data is processed within

seconds when the input is given.
Used for small amounts of data.
Real-time Processing

Eg: withdrawing money from

ATM

Data is automatically fed into the

CPU as soon as it becomes
available. Used for continuous
Online Processing
processing of data.

Eg: barcode scanning

Data is broken down into frames

and processed using two or
more CPUs within a single
Multiprocessing computer system. Also known
as parallel processing.

Eg: weather forecasting

 Allocates computer resources
Time-sharing and data in time slots to several
users simultaneously.

What is Data Processing: Data Processing Methods

There are three main data processing methods - manual, mechanical and electronic.

Manual Data Processing

This data processing method is handled manually. The entire process of data collection,
filtering, sorting, calculation, and other logical operations are all done with human
intervention and without the use of any other electronic device or automation software.
It is a low-cost method and requires little to no tools, but produces high errors, high
labor costs, and lots of time and tedium.

Mechanical Data Processing

Data is processed mechanically through the use of devices and machines. These can
include simple devices such as calculators, typewriters, printing press, etc. Simple data
processing operations can be achieved with this method. It has much lesser errors than
manual data processing, but the increase of data has made this method more complex
and difficult.

Electronic Data Processing

Data is processed with modern technologies using data processing software and
programs. A set of instructions is given to the software to process the data and yield
output. This method is the most expensive but provides the fastest processing speeds
with the highest reliability and accuracy of output.