A Comprehensive Guide on Data Processing

Amy Pattinson
August 17, 2022
 Mins Read

What is Data Processing?

Most modern industries rely on data to drive their growth. In this information age, CXOs use data-driven predictive analysis to power their businesses. After all, data-driven businesses are 23 times more likely to attract clients as compared to their peers. Naturally, the demand for mining meaningful information from a giant pool of data is increasing exponentially. Experts predict that the data processing business will grow to become a $168.8 billion in the coming years. With the rise in data generation, you need various data processing types and processes to leverage data in the right way. In this post, we discuss everything you need to know about data processing to propel your company’s growth.

The data processing cycle consists of a sequence of steps that get the necessary data from humongous raw data. With this process, key decision makers can test and alter their growth strategies through powerful data-driven insights. This process is sequential and cyclic in nature. It shows how data moves and evolves to understand and uncover perceptions that help companies drive better results. With the help of qualified data scientists, your raw data can turn into gold for your business! The cycle works on crude raw data and translates it into an easy-to-read format for computers to interpret.

Types of Data Processing

Manual Data Processing

In this type, humans process data manually without using any tools. It includes manually writing, sorting, and verifying data. This processing type incurs high labor costs, consumes a lot of time, and is more error-prone. So, companies have shifted to more reliable advanced tools to process work automatically.

Electronic Data Processing (EDP)

Also called information systems or services, EDP uses electronic communication tools to process raw data efficiently and timely. Using an ATM card to withdraw money is a common electronic data processing example.

Real-Time Data Processing

In this continuous process, systems respond to data input instantaneously and process it quickly to give the right output. For example, when a person checks his/her balance via an ATM card, the kiosk quickly processes account details and retrieves the balance.

Various Data Processing Steps

Here’s a list of steps that the process constitutes: -

  • Collecting Data
  • Preparing it to fit a certain format that suits data entry and error checking
  • Entering it into the system through the manual data entry process, scanning or machine encoding processes, and many others
  • Processing it through multiple computer programs
  • Transferring the mined data to your employees for use
  • Storing the raw data and output for future usage

6 Stages of a Data Processing Cycle

Stages of a Data Processing Cycle

Stages of a Data Processing Cycle

Collecting Data

This step is a critical one as the quality of the input data deeply influences the output data quality. While collecting data, organizations must ensure that they gather accurate and specific data. Input data’s validity determines if the findings extracted through the process are valid. Through this stage, you get a firm starting point from which you can measure data and set a goal on what needs to improve.

Preparing Data

In this stage, data scientists manipulate data into a suitable format to analyze and process further. It’s difficult to process raw data to check for accuracy, and so, we prepare it before using it as an input. Through this stage, data scientists construct a data set from multiple sources and use it to explore and process deeply. If you analyze data without screening them for issues, the results can be extremely misleading.

Input Data

In this stage, scientists code or convert verified data into a format that’s easy for machines to read. Through this conversion, you make it easier to pass it through the application for further processing. You can use a keyboard, scanner, or existing databases to enter data into the processing application. Inputting data is a time-consuming task that demands the utmost speed and accuracy. Most data should be semantically proper to help applications break complex data down. Due to the high costs to set-up this facility, many companies are outsourcing data entry.

Processing Data

During this stage, apps subject the data to various powerful Machine Learning and Artificial Intelligence algorithms. At the end of this stage, you’ll receive accurate and insightful data interpretations. This single process might contain multiple execution mini-threads that work simultaneously, depending on the data. You can use many applications to process large data volumes of diverse data in a short duration.

Receiving Data Output

At this stage, the user can see the processed information that’s transmitted to him/her. You can use various formats like audio, graphics, videos, or documents to represent the data effectively. Data scientists need to interpret the data efficiently to help stakeholders make better decisions for the company’s future.

Storing Data Effectively

In this last stage, companies store data and metadata for future use and interpretation. With this step, you can facilitate quick access and faster information retrieval for important purposes easily. Businesses must consider various security and safety concerns while storing the data for the future.

The Future of Data Processing

Data processing’s future lies in the use of cloud technology. This tech uses convenient electronic data processing techniques to boost its speed and efficiency. Quick and high-quality data enables organizations to use more data and extract valuable insights from them easily. As organizational data migrates to the cloud, businesses leverage numerous benefits. Big data and Cloud tech allow a seamless combination of multiple platforms to form a single easily-adaptable system. With the cloud, you can always ensure your new data integrates with the old information flawlessly. Even small businesses can reap the benefits of cloud technologies. Since these platforms are cost-effective and scalable, every business can scale up or down without bearing a huge cost.


Unstructured data troubles 95 percent of businesses. Every modern business needs structured and insightful data to compete and win customers. So, invest capital to refine your data, improve efficiency and decision-making today!

Data processing involves drawing out specific information from a source, processing this information and presenting it in an easily accessible, digital format. This holds a great advantage for many organizations, as it allows for a more efficient method for retrieving information, while also safeguarding the data from loss or damage.

Invensis Data Processing Services helps you manage your information in a more efficient way, enabling you to make strategic and critical decisions. Data Processing that includes forms processing, order processing and mailing list compilation as well as other processing of different forms of business and organizational information, is an essential but non-core aspect of business processes.

Learn more about our services in detail – Back Office BPO Service

Article by
Amy Pattinson

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