An overview of Importance of data processing in business, education, research
Importance of data processing includes increased productivity and profits, better decisions, more accurate and reliable. Further cost reduction, ease in storage, distributing and report making followed by better analysis and presentation are other advantages. The need to process data is now widely realized and reflected in every field of work. Let the work be done in a business atmosphere or for educational research purpose, data management systems are used by every business. It is a multidimensional process which is involved in almost every field of human life. Generally speaking, the term “Data Processing” is used where you have to collect innumerable data files from different sources. You have to arrange them in a way that can be practically beneficial for the purpose you have gathered all that material. It is a task of synchronizing collected data from different sources and convert it to an organized form . This makes it easy to understand and retrieve the specific information anytime. There are various data processing methods which include manual data processing, mechanical data processing and electronic data processing. Data processing is one of the most important daily tasks especially when dealing with big data and performing data mining. All those fields where we can expect a huge data available to settle down like education, banking or transportation now realises the importance of data processing. With the emergence of fields like data science, data analysis, big data etc. the need to process data and to understand the importance of processing the data is crucial.
What makes processing of data important
Nowadays more and more data is collected for academic, scientific research, private & personal use, institutional use, commercial use. This collected info needs to be stored, sorted, filtered, analyse and presented and even require data transfer for it to be of any use. This process can be simple or complex depending on the scale at which collection is done and the complexity of the results which are required to be obtained. The time consumed in obtaining the desired result depends on the operations which need to be performed on the collected data and on the nature of the output file required to be obtained. This problem becomes starker when dealing with the very large volume of data.
The need for processing becomes more and more critical in such cases. In such cases, data mining and data management come into play without which optimal results cannot be obtained. Each stage starting from collection to presentation has a direct effect on the output and usefulness of the processed data. Sharing the dataset with third party must be done carefully and as per written agreement & service agreement. This prevents data theft, misuse and loss of data.
Processed data makes it easy to arrange it by type and information, it saves a lot of space. This also helps in making sure that all staff and workers can learn and understand it easily. They can implement it in the work, which can otherwise take up more time and end up in providing a decreased output. This can harm the interests of the business or organization.
Most businesses and fields require data for providing a good quality of service. Collecting data and it’s implications are very important aspects of managing and ensuring statistical authenticity. It is particularly essential for services concerned with financial technologies. This is so because transactions and payment details need to be properly stored for easy access by customers as well as the company officials upon need. Processing is not limited to computers and can be done manually as well.
The invention of computer technology was one of the most important events of all time. With the improvement of computer technology and ease of use, it has become a popular technology in the hands of many. Data processing has also become popular with computer systems making it easier to be handled and for specialised requirements companies look for a data scientist. Data processing is a field that has numerous applications in most fields like business, education, healthcare, research and more. The importance is increasing with the increase in advancement in areas like data science, machine learning, artificial intelligence, data quality and data security etc. When discussing about data processing, it’s good to know about data collection, business intelligence, data analysis, data sources and quality information etc.
All of the departments which align data processing as their most important task daily, have much more to do in different areas of working field. There are some priorities which they need to do at any cost and then there are some pending works to complete as well. Study shows that it is a general practice to waste a lots of time doing manual data processing. Modern world calls for an automated data processing and the increased use of structured data. This is done by using different reliable apps so that the remaining fields can have their required manpower to complete daily tasks.
Various reasons reflecting importance of data processing
Data is being collected by almost everyone either knowingly or unknowingly. Collection of data is the first step but processing of data is another vital activity. Companies, institutes & various groups all over the world are engaged in the work of data processing. While talking about the importance of data processing it is equally important to be aware about the related aspects right starting from the methods of data collection, data processing, data processing cycle, information processing cycle, methods of data processing, types of data processing, data presentation and analysis till the data management best practices. Some of the many purposes that call for an efficient data processing and important ones are mentioned below:
Yields better results & increases productivity
A company or organisation which possess data or have access to required data is undoubtedly at advantage. Data is not just simply numbers and tables but the undue advantage which an entity can have over its competitors. Data can be processed in different forms to obtain the required information, without data it will be impossible to take a good decision. A decision taken after the data is analysed gives confidence while taking decision as the stats and required details are available with the group. Having access to structured data which can be used to obtain meaningful information offers any company a competitive advantage. Real time processing of data is the foundation and backbone of many companies such as those in banking and record keeping sector.
Having analysed the data as per requirement you will gain insight to the areas in which improvements needs to be made. Data Visualisation & data mapping are particularly important Those key areas can be prioritized and addressed accordingly. To boost the productivity in terms of sales, better understanding of topic or for further processing of data required area can be selected. Similarly you can analyse the areas which require minimal intervention so that extra workforce (if any) can be assigned for other words. Potential areas with maximum benefits can be identified and investment can be made in those key areas to improve the efficiency and profit.
Report Making is simplified:
In almost all of the activities, data is used hugely for the purpose of collecting certain values and making reports. It had been taking so long to prepare a report when manual data processing was utilized. But now it has been simplified and all of the process of report making is done so speedily. Once you have processed and placed all data according to a certain framework, you can just gather the needed data with a few clicks. In many cases preparing a report has now become matter of minutes. Your report looks more organised & authentic. It contains relevant information obtained after a logical processing of data. Data presentation and analysis is also simplified and becomes more effective.
Speed, Accurate and more reliable
It is important to make sure that the collection of facts and figures is done quite speedily and without making any errors. When data is collected and filtered through computers, there are no or negligible chance of errors. It is almost guaranteed that the further processes will be done with maximum possible accuracy. If the input data is accurate then the output is always accurate. Processing can be done at a greater speed and with higher accuracy when the right combination of softwares is used. Another importance of data processing is the major advantage when working in a competitive environment. It is not uncommon to have access to same data. Data and information with better quality is more reliable. Predictive modelling, data cleaning, data validation, batch processing are necessary for accurate data.
Storage and distribution is easy when data is processed:
When we have piles of data, we need a huge place to store it and there is a huge chance of missing information and confusions. When the data is processed through computers, you do not need an extra room to store all those hard files and papers. All of your data is processed and labelled through a complete computerized setup so you do not need to get confused at any stage. It is easy to take out any information from a processed data instead of an unprocessed one. Having your data stored in a digital form rather than having the hard copies is another aspect which highlights the importance of data processing.
Data once collected acts as asset for any group and having it stored provides easy access to when required. This eliminates the need to collect data again and again. Moreover it is very easy and convenient to make copied of the stored data when stored in digital form. Sending or transferring the data is also much easier and eases the use of this data for research purposes. This directly helps in cost reduction. The cost or loss which a company might incur because of lack of information is also drastically reduced. This is so as processed data enables it to take a wise and informed decision thus again saving on huge cost.
Digitization has made processes quite cost-effective. That is why students are using computers and laptops to prepare their assignments. Some even use online essay writing services and keep all the record in digital form instead of printed one. Teachers are also keeping records on computers instead of taking piles of papers with them to check every day.
Safe and secure
Having processed data in digital fulfils another very essential requirement of information being secure. Since the value of data has increased over the time, incidents of data theft is not something which is unheard. Once the data is processed it is easier and essential to keep it secure. This can be done by use of various paid and free softwares. This will prevent any unauthorized access to the data and thus keeping your data safe. You can also encrypt your data if the need is felt.
Importance of data processing is now realised as it is necessary to keep every bit of collected data in order. This makes it easy to use, keep it stored and work with. Moreover, digitized data is easy to be approached anywhere via emails, clouds and other data storing apps and devices.
Other benefits and merits of Data Processing are:
- Data processing makes it easier to validate actions and changes and transactions easily and reduce dependence on computational power for collecting them on demand from a basic form. Transaction processing systems are highly dependent on real time data processing.
- Insurance claims can be easily handled and settled with properly processed data and make it time-saving for the police authorities as well. Keeping and managing health records, creating electronic health records is now possible due to batch processing, powerful & reliable data warehouses.
- Data processing can also be made to include image processing and make it easier to present any data to users in a readable format that is liked by them.
- Invoices can be easily generated for services which have been used and make the customer experience better.
- Data processing in the form of word processing can help in making documents which are readable and likeable by readers and be made even more engaging.
Another importance of data processing is that the governments can use the processed data for saving time during surveys and also provide services and amenities to places based on the geographical and economic information. With safe and reliable data, reports can be easily made and troubleshooting processes can be made easier and less time-consuming.
From sorting of data to aggregation of a similar type of data, data processing can help a lot in making everything organized and ensure a smooth workflow that satisfies both the users of the data as well as managers of the data. With the current trends, it is a very good field and can hope to engage more people to make itself into a good industry.