TOPIC: DATA PROCESSING
Subtopic: Electronic data processing method
Objectives
By the end of this subtopic, learners should be able to:
Explain electronic data processing method.
List the advantages and disadvantages of electronic data processing method.
Compare electronic and manual data processing methods.
Electronic data processing method
This method is also known as mechanical data processing.
Electronic data processing involves the use of electronic machines such as
computers, mechanical devices (like printers and typewriters) in processing data.
Here electronic machines such as computers are given a set of instructions as
input and automatically process the data according to the given set of instructions.
This is the modern method of processing data based on information technology
(IT).
Electronic data processing is the mostly adopted data processing method in the
21st century due to technological advancements.
Fig 3.2 below shows pictures of some of the machines used in electronic data
processing.
Fig 3.2 Electronic data processing devices
Advantages of electronic data processing method.
Very fast.
Accurate: Some computer programs have built in error detection systems.
Less labour intensive.
Errors can be easily traced and corrected.
Electronic data processing systems are free from manipulation once correct
information has been captured.
Fewer papers are involved.
It promotes green technology.
Files can be saved and archived electronically.
Computerised accounting makes it safe and easy to share files and information,
with no geographic limitations.
Files can be protected by the use of passwords.
Accounting reports can be easily and quickly produced at any given time.
Disadvantages of electronic data processing.
Very expensive - Office automation can be very expensive when installing in
software and equipment for the first time.
Leads to loss of jobs as only a few employees will be needed to operate machines.
High maintenance or upgrading costs as machines may need to be serviced,
updated or upgraded periodically.
Affected by technological changes.
High training and retraining costs for the personnel operating the machines, in
cases of new upgrades and changes in operating programs.
Affected by viruses.
Prone to crashing as a result of mismanagement and technical faults.
There is need for (onsite or offsite) backup.
Rely on electric power for operation.
Cannot be integrated with manual data processing method.
Manual data processing Mechanical data processing
Limited use of machines or High use of computer hardware.
computer hardware.
Limited use of accounting software. Uses accounting software.
High use of human labour. High use of computing technology.
High labour costs. Low labour costs.
Low capital investment. High capital investment.
Slow data processing. Fast data processing.
Very little computer skills required. High technical or computer skills required.
Lots of paper work. Very little paper work.
Differences between manual data processing method and electronic data
processing methods
