The Data Processing Flow
The objective of all data processing, whether
manual or electronic, is the conversion of data into information that
can be used in making decisions. The term information processing,
then, includes all the steps involved in converting data into
information:
Thus it includes data processing as well as the
process of converting data into information.
What is the difference between data and information? Data refers to raw facts collected from various sources, but not organized or defined in a meaningful way. Data cannot be used to make meaningful decisions. For example, a bank manager may have very little use for a daily list of the amounts of all checks and deposits from the branch offices. But once data is organized, it can provide useful informa-tion-perhaps in the form of a summary report giving the dollar value and total number of deposits and withdrawals at each branch. Information, then, is processed data that increases understanding and helps people make intelligent decisions (see Figure below).
The Data Processing Flow
To be useful, information must be accurate,
timely, complete, concise, relevant, and in a form easily understood
by the user. It must be delivered to the right person at the right
time. If information fails to meet any of these requirements, it
fails to meet the needs of those who must use it and is of little
value.