What is Electronic Data Processing in Business?

1.4 Electronic Data Processing in Business

                Data is the most important asset in any business organization. Different type of information is produced from the data. The manual processing of data becomes more difficult when the amount of data is very large. Electronic data processing is used in almost all organizations in order to get quick results and timely information.

Significance of Electronic Data Processing in Business

The significance of data electronic processing in business is as follows:

1.     Speed

The amount of data also increases as business grows. It becomes more difficult to process this data manually. In electronic data processing, the data can be processed with rapid speed and information is generated quickly.

2.     Accuracy

It is very important to process the data accurately to run a business correctly. The information generated from incorrect data will also be incorrect. Electronic data processing gives us more accurate results. The chances of errors are far less than other data processing.

3.     Cost

In manual data processing, different clerical and administrative staff is required to perform different calculations. More number of people increases the total cost of data processing system. But electronic data processing system requires a few persons to handle it. It minimizes the cost of data processing.

4.     Record Keeping

Electronic data processing system provides us an effective way of record keeping. We can easily keep a hug volume of data in the computer. It can also be retrieved and processed in a good and efficient manner.

5.     Searching

In large business, the amount of data increases day by day. In manual data processing, it is very difficult to search something from huge amount of data electronic data processing system can search the required within a few seconds.

6.     Information

Effective and timely decision-making is very important to run a business successfully. This decision making is based on the information we get from the stored data. Electronic data processing provides the required information in a complete and comprehensive way. It helps in taking effective decisions about the business which is very good thing.

7.     Services

In any business, customers play an important part in its success or failure. It is very important to serve customers in a good manner. Data processing system should provide the required information to customers. Electronic data processing system can serve customers more effectively. We can represent information for the customers in different and easy way.

8.     Communication

The information can be sent to many people in less time using electronic data processing. For example, a bank can send the balance sheet of all customers through email.

9.     Scope

The use of electronic data processing system can expand the scope of the business. For example, the customers can interact with organization from any place of the world if the organization has a website. The required information can be displayed on the website.

10.Flexibility

Different software packages re available for electronic data processing. These software packages give the facility to represent the information in different flexible ways. For example, we can draw charts and graphs etc. We can also display the information in different styles