Electronic data processing

Electron data processing (+EDP^) speeh refer to the use of automated methods to process commercial data. Typically, this uses relatively simple, repetitive activities to process large volumes of similar information. For example: stock updates applied to an inventory, banking transactions applied to account and customer master files, booking and ticketing transactions to an airline's reservation system, billing for utility services. The modifier "electronic" or "automatic" was used with "database processing" (DP), especially c. 1960, to distinguish human clerical data processing from that done by computer. Hollerith's Tabulating Machine Company merged with two other firms to form the Computing-Tabulating-Recording Company, later renamed IBM. The punch-card and tabulation machine business remained the core of electronic data processing until the advent of electronic computing in the 1950s (which then still rested on punch cards for storing information).

1967 letter by the Midland Bank to a customer, on the introduction of electronic data processing

Electronic data processing in the Volkswagen factory Wolfsburg, 1973

The first commercial business computer was developed in the United Kingdom in 1951, by the J. Lyons and Co. catering organization. This was known as the 'Lyons Electronic Office' – or LEO for short. It was developed further and used widely during the 1960s and early 1970s. (Lyons formed a separate company to develop the LEO computers and this subsequently merged to form English Electric Leo Marconi and then International Computers Limited.) By the end of the 1950s punched card manufacturers, Hollerith, Powers-Samas, IBM and others, were also marketing an array of computers. But the full realization of these benefits had to await the arrival of the next generation of computers

Today

As with other industrial processes commercial IT has moved in most cases from a custom-order, craft-based industry where the product was tailored to fit the customer; to multi-use components taken off the shelf to find the best-fit in any situation. Mass-production has greatly reduced costs and IT is available to the smallest organization.

LEO was hardware tailored for a single client. Today, Intel Pentium and compatible chips are standard and become parts of other components which are combined as needed. One individual change of note was the freeing of computers and removable storage from protected, air-filtered environments. Microsoft and IBM at various times have been influential enough to impose order on IT and the resultant standardizations allowed specialist software to flourish.

Software is available off the shelf: apart from products such as Microsoft Office and IBM Lotus, there are also specialist packages for payroll and personnel management, account maintenance and customer management, to name a few. These are highly specialized and intricate components of larger environments, but they rely upon common conventions and interfaces.

Data storage has also been standardized. Relational databases are developed by different suppliers to common formats and conventions. Common file formats can be shared by large main-frames and desk-top personal computers, allowing online, real-time input and validation.

In parallel, software development has fragmented. There are still specialist technicians, but these increasingly use standardized methodologies where outcomes are predictable and accessible. At the other end of the scale, any office manager can dabble in spreadsheets or databases and obtain acceptable results (but there are risks, because many don't know what Software testing is). Specialized software is software that is written for a specific task rather for a broad application area. These programs provide facilities specifically for the purpose for which they were designed.

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• Computing
• Data processing
• Data processing system
• Information Technology