What is the full form of EDP

EDP: Electronic Data Processing

EDP stands for Electronic Data Processing. Electronic Data Processing is nothing but a synonym for IS (Information Services or systems) or MIS (Management Information Services or systems).

It refers to the processing of-commercial data, storing documents, and transferring information from paper into digital format with the use of a computer involving electronic communication. It was created with the term DP (data processing). In simple words, it is a process comprising three stages which are as follows:

• Input: The data is entered through input devices like a keyboard, digitizer, scanner, etc.
• Processing: The data is manipulated through software programs that usually include translation, formula, code application, encryption, etc.
• Output: The processed data is passed to the user in the form of reports, audio, video, etc.

History

Lyons Electronic Office (LEO) developed the first commercial business computer in the UK in 1951. At that time, data could only be entered through punched tape or cards. These punched cards needed to be separately manufactured. Processing commercial data was extremely tough and really time-consuming.

At first, individual organizations created their own software, bespoke data processing software.

With the advent of microprocessors, punch cards were retired, and it became possible to process data electronically using simple desktop computers.

Advantages

• Speed: The information stored and managed through EDP can be retrieved quickly.
• Efficiency: It allows you to generate summary documents (invoices, reports, statements) automatically and quickly.
• Cost-effective: Long-run total cost of managing data through EDP is less.
• Fewer errors or mistakes: Errors like repeated entries and duplication of efforts are greatly reduced or eliminated in EDP.

EDP in Modern Era

In today's electronics world, the EDP term is not that used. In almost every sector, there is the use of computers. Companies hire employees to convert their raw information digitally to provide products and services to their customers in a timely and efficient way.

Electronic data processing components

Four essential components make up EDP systems:

1. Hardware: The physical components of the EDP system, including devices and peripherals, are referred to as hardware. The following digital tools are the most frequently used in EDP: end-user computing tools, such as laptops, desktop computers, and smartphones, which can capture data and enable data entry; a central server, which is necessary to support data processing and analysis; and audio and video tools, which are used when data needs to be captured in a multimedia format.

The following may also be included in EDP systems: scanners to convert paper-based data into digital format; barcode scanners and point-of-sale systems to capture product price data for invoicing; and medical devices and sensors to gather patient data for diagnosis and treatment.

2. Software In EDP, the software guarantees that the intended output is provided and that the hardware functions. For varied applications and business requirements, many types of EDP software are available, including the following:

Scheduling and time management, data entry, accounting, bookkeeping, analytics, and inventory management

3. Techniques: EDP processes or stages include data collection, aggregation, conversion, sorting, analysis, and reporting in addition to hardware and software (see below).

4. Employees: Personnel is the last component of the EDP. Although EDP technologies are designed to automate manual tasks and reduce human involvement, individuals are still needed to operate the systems and use the generated insights to make business decisions.

Steps or methods in the electronic data processing

There are several processes or actions involved in the EDP process.

Data gathering

The data may be gathered from many sources and entered into an EDP system. To optimize the system's utility and value, these sources must be reliable and produce high-quality data. Large data lakes and data warehouses may yield enormous volumes of data to advanced EDP technologies.

Preparing and converting data

Cleanup and organization of raw data are required. An EDP system verifies and eliminates data mistakes as well as redundant or wrong data that may have an impact on the output quality. Before moving on to the next level, the system transforms the data if it is not in a format that is suitable for processing.

Data entry

The data is sent to the target application in a clean, structured, and formatted manner that the program - such as a customer relationship management or enterprise resource planning platform - can comprehend. The data is then prepared for processing and turning into information that may be used.

Processing data

Machine learning algorithms may be used by advanced EDP systems to analyze and interpret data. Older systems could employ different, less sophisticated methods of data processing. Depending on the kind of data, the source, and the intended use case, several processing methodologies are typically used.

The data results

The translated and transformed processed data is then presented in a human-readable format, such as charts, text, graphics, etc. The conversion makes it possible for human users to make inferences from the data without the need for highly specialized technical knowledge.

Storing data

The last stage of an EDP is data storage. Data that has been transformed and processed is saved on media for later use. Compliance rules in several businesses require that data be properly stored and, in certain situations, encrypted.