Explain management of data processing systems in business organisations?

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krishna-agrawala | College Teacher | (Level 3) Valedictorian

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Data and information play a very important role in management of any enterprise. The use of information becomes more extensive and important for an enterprise with increase in its size and complexity. Data Processing in business refers to all the activities related to the collection of data required by a business, storing and analyzing this data, and supplying the data in form of useful information required for operating and management of the business.

Managers need information about the environment of the enterprise they manage and within which they operate. They need to know the internal resources available in the organization they work for. They need to know its aspirations and limitations. To work effectively they must understand the internal strengths and weaknesses of the organization, the opportunities available and the external threats faced by it. They must have information about the customers of the company and its competitors. They must understand the technology of their business. There are hundreds of such types of information managers must have to manage their companies effectively. They use such information to take decision about their own actions and of subordinates they need to direct and guide. They also pass on information to their juniors, seniors, and colleagues to facilitate their work. Similarly a manager also receives information from others in the organization for facilitating his work. Such exchange of information is essential for collaborative working of the organization.

The management of data processing in business is aimed at providing managers with all such information effectively and efficiently. More specifically Data processing aims to ensure that good quality information available to support all the activities of the business. It aims to provide information to managers that is relevant, accurate, reliable, timely and easy to understand.

Effective management of data processing requires the general management skills, as for management of any other function. In addition it requires good understanding of business processes. Also with intensive use of Information, management of information also requires good technical knowledge of information technology, which covers five main sub-system of data processing processes: data capture, data storage and retrieval, analysis, information presentation, and information transmission.

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