What is Data Processing?

Mary Elizabeth
Mary Elizabeth

Used specifically, data processing may refer to a discrete step in the information processing cycle in which data is acquired, entered, validated, processed, stored, and output, either in response to queries or in the form of routine reports; the processing is the step that organizes the information in order to form the desired output. Used in a more general sense, data processing may also refer to the act of recording or otherwise handling one or more sets of data, and is often performed with the use of computers. The word data is commonly used to mean “information” and often suggests large amounts of information in a standardized format. Data may consist of letters, numbers, equations, dates, images, and other material, but does not usually include entire words.

Entering receipt information into a spreadsheet is a type of data processing.
Entering receipt information into a spreadsheet is a type of data processing.

Processing Data and Information

One of the key points about the term data processing is that it is used by some synonymously with the term information processing, while others make a distinction between the two. In most cases, however, the word data is used to mean the original form of the output, while information is meant to define data that has been organized or altered in some way. The Bureau of Labor Statistics (BLS) in their publication Occupational Outlook Handbook, 2010–2011 Edition, have an entry for “Data Entry and Information Processing Workers.” Here, a distinction is being made between “data,” which is raw material, and “information,” which has undergone some processing: the two are being treated as distinct, with data preceding information.

Computing Data

In computing, data processing can be used to refer to the use of a software application to organize some type of input data in order to create a desired output. The result might be anything from a multimedia file to an image, or a text file. Usually, entering words as one thinks of them is not considered as data entry, so writing a story using a word processor would not qualify as a true form of processing data; however, entering receipts and expenditures for the month in a spreadsheet program and printing a report would.

Programs designed to process data are plentiful, and their capabilities range from basic to very in-depth. One example of a program that can easily process data is Microsoft Excel®, which is essentially a spreadsheet that can be used to organize data, especially mathematical equations. The program can be used for very basic processing or, if the user is familiar with the program, it can also be used for more in-depth outputs. Other types of processing programs include programs used to organize accounting data to determine losses or gains, seismic data used to predict earthquakes, and business statistics to help businesses run more efficiently, just to name a few.

Mary Elizabeth
Mary Elizabeth

Mary Elizabeth is passionate about reading, writing, and research, and has a penchant for correcting misinformation on the Internet. In addition to contributing articles to EasyTechJunkie about art, literature, and music, Mary Elizabeth is a teacher, composer, and author. She has a B.A. from the University of Chicago’s writing program and an M.A. from the University of Vermont, and she has written books, study guides, and teacher materials on language and literature, as well as music composition content for Sibelius Software.

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Discussion Comments


@behaviourism, I can totally see where there used to be a great need for many people when it came to manual data processing. I am sure the invention of computers have quelled this some, but I think you are exactly right in that there still has to be people to know what has to be done with the data, and how the data is supposed to look after processing. Computers can only do so much!


A good example of the difference between data and information, if one exists, with "processing" being what turns data into information can be seen in accounting. The journal entries that record transactions would be the data, and the financial statements would be the information. The processing that takes place in order to compile all the journal entries into useable information for the financial statements would be the "data processing."


Large amounts of data processing used to be done manually, leading to many data processing jobs in businesses. These days it is a highly streamlined process, but many people still are needed to help ensure information gets saved by programs correctly.

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