Data Processing Cycle
Data processing is the method of collecting raw data and translating it
into usable information. This process is essential for organizations to create
better business strategies and increase their competitive edge. The data
processing cycle consists of a series of steps where raw data (input) is fed
into a system to produce actionable insights (output). Here are the six main
steps in the data processing cycle:
Collection
The first step involves gathering raw data from various sources. The
type of raw data collected has a significant impact on the output produced.
Raw data should be gathered from defined and accurate sources to ensure
valid and usable findings. Examples of raw data include monetary figures,
website cookies, profit/loss statements, and user behavior.
Preparation
Data preparation, also known as data cleaning, involves sorting and
filtering the raw data to remove unnecessary and inaccurate data. This step
ensures that only high-quality data is fed into the processing unit. The
purpose is to remove bad data (redundant, incomplete, or incorrect data) to
assemble high-quality information for business intelligence.
Input
In this step, the raw data is converted into a machine-readable form
and fed into the processing unit. This can be done through data entry using
a keyboard, scanner, or any other input source1.
Data Processing
The core of data processing involves manipulating and analyzing the
prepared data using various methods, including machine learning and
artificial intelligence algorithms. This step may vary depending on the
source of data being processed and the intended use of the output1.
Output
The processed data is then transmitted and displayed to the user in a
readable form, such as graphs, tables, vector files, audio, video, or
documents. This output can be stored and further processed in the next data
processing cycle1.
Storage
The final step involves storing the processed data and metadata for
future use. This allows for quick access and retrieval of information
whenever needed and enables the data to be used as input in the next data
processing cycle1.
Data processing is a continuous cycle that ensures data is transformed
into meaningful information, enabling organizations to make informed
decisions and gain a competitive edge.
“Data is like garbage. You’d better know what you are going to do with
it before you collect it.” — Mark Twain
Much of data management is essentially about extracting useful
information from data. To do this, data must go through a data mining
process to be able to get meaning out of it. There are a wide range of
approaches and techniques to do this, and it is important to start with
the most basic understanding of processing data.
What is Data Processing?
Data processing is simply the conversion of raw data to meaningful
information through a process. Data is technically manipulated to
produce results that lead to a resolution of a problem or improvement of
an existing situation. Similar to a production process, it follows a cycle
where inputs (raw data) are fed to a process (computer systems,
software, etc.) to produce output (information and insights).
Generally, organizations employ computer systems to carry out a
series of operations on the data in order to present, interpret, or obtain
information. The process includes activities like data entry, summary,
calculation, storage, etc. Useful and informative output is presented in
various appropriate forms such as diagrams, reports, graphics, doc
viewers etc.
Stages of the Data Processing Cycle:
1) Collection is the first stage of the cycle, and is very crucial,
since the quality of data collected will impact heavily on the output. The
collection process needs to ensure that the data gathered are both
defined and accurate, so that subsequent decisions based on the findings
are valid. This stage provides both the baseline from which to measure,
and a target on what to improve.
2) Preparation is the manipulation of data into a form suitable for
further analysis and processing. Raw data cannot be processed and must
be checked for accuracy. Preparation is about constructing a data set
from one or more data sources to be used for further exploration and
processing. Analyzing data that has not been carefully screened for
problems can produce highly misleading results that are heavily
dependent on the quality of data prepared.
3) Input is the task where verified data is coded or converted into
machine readable form so that it can be processed through an
application. Data entry is done through the use of a keyboard, scanner,
or data entry from an existing source. This time-consuming process
requires speed and accuracy. Most data need to follow a formal and
strict syntax since a great deal of processing power is required to
breakdown the complex data at this stage. Due to the costs, many
businesses are resorting to outsource this stage.
4) Processing is when the data is subjected to various means and
methods of powerful technical manipulations using Machine Learning
and Artificial Intelligence algorithms to generate an output or
interpretation about the data. The process may be made up of multiple
threads of execution that simultaneously execute instructions,
depending on the type of data. There are applications that are available
for processing large volumes of heterogeneous data within very short
periods.
5) Output and interpretation is the stage where processed
information is now transmitted and displayed to the user. Output is
presented to users in various report formats like graphical reports,
audio, video, or document viewers. Output need to be interpreted so that
it can provide meaningful information that will guide future decisions of
the company.
6) Storage is the last stage in the data processing cycle, where
data, and metadata (information about data) are held for future use. The
importance of this cycle is that it allows quick access and retrieval of the
processed information, allowing it to be passed on to the next stage
directly, when needed. The use special security and safety standards to
store data for future use.
The Data Processing Cycle is a series of steps carried out to
extract useful information from raw data. Although each step must be
taken in order, the order is cyclic. The output and storage stage can lead
to the repeat of the data collection stage, resulting in another cycle of
data processing. The cycle provides a view on how the data travels and
transforms from collection to interpretation, and ultimately, used in
effective business decisions.
