With more data comes the need for more data processing. In finance, manual data processing had once been the go-to method for sorting and utilising data. However, technology and data software tools have created an improved, expedited and more accurate environment for data processing needs.
We’ll cover everything you need to know about data processing, as well as the benefits of automated data processing over manual data processing.
Data processing is the collection and transformation of raw data inputs into meaningful and insightful outputs. Data processing can either be performed manually (by hand) or electronically (with data processing tools and computers).
Data processing encompasses several data processing functions, namely:
Data processing typically follows a set cycle of events to transform raw data into useful and actionable insights.
Whether the process is completed by hand or with a computer system, the cycle will follow these steps:
1. Input Stage
2. Processing Stage
3. Output Stage
4. Storage Stage
When you think of the various types of data that your business collects, you can clearly see that there needs to be organisation within the process. When this is done manually, there will be various spreadsheets and repositories of data sitting across disparate computers. While it’s possible to glean insights this way, there is a higher margin for error and likelihood of missing information. It can also take enormous amounts of time to pull, cleanse and map the data.
By utilising a data automation tool like SolveXia, the system can centrally collect, store, transform and communicate data from multiple sources nearly instantaneously. This way, you can ensure that any relevant party from your team can access data whenever and wherever they need it, while ensuring its accuracy and relevance. Finance can then spend more time on understanding insights and high value tasks, rather than collecting and processing endless data.
There are several data processing methods to choose from. While we are strong proponents in automated data processing, we can’t fail to mention the use of manual and mechanical data processing.
Take a look:
Without using a machine or any sort of tool, data processing can be done by hand. Data is manually collected and moved from one place to another. Given the manual work involved and high need for attention to detail, errors are likely to occur. Additionally, manual data processing is time consuming. Yet, many businesses and even government agencies still utilise this method of data processing.
Naturally, this is generally the case when budgets are low and manual data processing is the most affordable method. It’s useful to note that as technology progresses, the economies of scale have made it more attainable and accessible for all.
Moving to the next level of expedited data processing brings us to mechanical data processing. This method relies on mechanical printers, devices and typewriters to work with data. While it works more quickly than manual data processing, it is still a fairly primitive approach. Yet some industries may still utilise it, like printing presses, for example.
Electronic automated data processing is the world’s most modern, effective and efficient method for data processing. With the power of a computer, data can be transformed from input to output given a set of instructions. Because of artificial intelligence, machine learning and robotic process automation, human intervention in this method is rarely or minimally required.
Automated data processing tools like SolveXia can handle and transform big data in seconds and connects with multiple systems simultaneously including legacy systems. This has completely transformed the way that businesses operate by providing deep insights and analytics. The latter allow business leaders and stakeholders to forecast the future and make pivotal business decisions in a timely manner.
With data processing happening through computers, different types of computer files exist to collect, store, organise and share data.
Firstly, there are many benefits to having data stored in a centralised system, including:
Secondly, computer files can be organised by their functions. Here’s a look at the types of computer files you’ll get used to dealing with when carrying out data processing:
When you think of organising files, the manual process will likely bring to mind organization tools like manila folders, label makers and indices.
In the same vein, a computer will organise files such that data processing can take place efficiently. It refers to how the system both stores and accesses records.
There are different types of file organisation methods, which include:
Electronic data processing by way of automation tools and computers opens the door to many processing capabilities. It goes without saying that every type of automated processing mode is faster than its manual counterpart.
Fortunately, automated data processing tools are rapidly evolving to keep up with the enormous amounts of data that exists in the world.
The benefits of automation tools over manual data processing are plenty. Let’s consider some of the most widely recognised benefits:
Every type of business performs some type of data processing. No matter how much data you collect or wish to collect, automated data software and solutions exist to make the process smoother, more adaptable, less costly and more efficient.
Different tools may utilise different processing methods. No matter which they employ, automated data processing is a necessary solution for a business looking to glean actionable and worthy insights from raw inputs and data records.
If you’re searching for a cost effective and powerful data processing tool, a data automation solution like SolveXia can 10x your team’s productivity.
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