Importance of Electronic Data Processing in Business

Data is the most important asset in any business organization. Different types of information are created from the data. Manual data processing is more difficult when the amount of data is very large. Electronic data processing is used in almost all organizations to obtain quick results and timely information.

The importance of electronic data processing in business is as follows:

1. Speed

As the company grows, so does the quantity of data. Manual processing of this data becomes more difficult. In electronic data processing, data can be processed at high speed and information is generated quickly.

2. Accuracy

It is very important to process data accurately to run a business correctly. Information generated from incorrect data will also be incorrect. Electronic data processing gives us more correct results. The probability of errors is much less than with other data processing.

3. Costs

Manual data processing requires administrative and clerical staff to perform various calculations. It increases the overall cost of the data processing system. An electronic data processing system requires few people to handle it. It minimizes costs.

4. Record keeping

An electronic data processing system provides us an efficient way of keeping records. We can easily keep a huge amount of data on our computer. It can also be obtained and processed in a good and efficient way.

5. Search

In big business, the amount of data is increasing every day. When processing data manually, it is very difficult to search for something from a large amount of data. The electronic data processing system can retrieve the required data within seconds.

6. Information

Effective and timely decision-making is very important for a successful business. This decision making is based on the information we obtain from the stored data. Electronic data processing provides the required information in a complete and comprehensive manner. It helps in pick effective business decisions.

7. Services

In any business, customers play an important role in its success or failure. It is very important to serve customers in a good way. The data processing system should provide customers the required information. An electronic data processing system can serve customers more efficiently. We can present information to customers in a different and easy way.

8. Communication

Using electronic data processing, information can be sent to many people in less time. For example, a bank can send the balance sheet of all customers via email.

9. Scope

Using an electronic data processing system can expand the scope of business. For example, customers can interact with an organization from anywhere in the world if the organization has a website. The required information can be viewed on the website.

10. Flexibility

Various software packages are available for electronic data processing. These software packages allow information to be represented in a variety of flexible ways. For example, we can make charts and graphs etc. We can also display information in various styles.