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 can be 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 the practice 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 Electronic Data Processing
The main advantage of EDP systems is that they enable the rapid 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 and streamline 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 also minimize 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.