Data Processing is a process of converting data into the information and it can also convert information into a data. It means Data Processing can convert any data from one format to another. By means of various sources, customers give their opinions as data. Information system takes that raw data as input to produce Information as output. Hence, conversion of raw data into useful information is accomplished through an application of data-processing.

Many businesses are venturing to take immense advantage of it as data processing is an essential ingredient in the market research. Data are facts or figures through which one can jump into the conclusion. By gathering plentiful data, Companies then utilize that information for swelling their revenue or for cutting-down the price. These data are presented in a systematic fashion so that it is easy to understand, analyze and act upon.

5 Step Approach to Data Processing:

• Editing – To determine the relevance of data is a crucial step in a data processing. Once the data has been accumulated from the different sources, the relevance of the data is been tested-out then. All the inappropriate data is taken out and only the relevant information is been kept.
• Coding – All the needed information would be in a random order. Therefore, it needs to be aligned into a particular system so that it is unproblematic to comprehend it. This method other than Coding, is also called as ‘netting’ or ‘bucketing’ which necessitates certain codes
• Data Entry – Data is entered into the software that does the eventual cross tabulation. After the decision has been made on a code, edited data is than entered into the software.
• Validation – Validation is the second phase of ‘cleaning’ in which thorough quality-check is been done. Data is double-checked so as to ensure that the process has been done infallibly