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Data Processing & Data Processing Stages

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05th Sep, 2023
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    Data Processing & Data Processing Stages

    Data processing has become increasingly important as technology continues to advance and large amounts of data are generated every day. In this article, we will explore what data processing is, how it works, different types of data processing methods and tools available, examples of data processing, moving from data processing to analytics, and finally, discussing what lies ahead for the future of data processing. If you are interested in learning more about data Processing in predictive analytics check out Machine Learning Course for beginners.

    What Is Data Processing? 

    Data Processing refers to the various procedures involved in collecting, organizing, and transforming raw data into useful and informative content. From extracting, cleaning and formatting to transforming and loading, it involves a series of tasks aimed at generating structured output from unstructured inputs. By filtering out irrelevant details, reducing redundancies, classifying objects and transforming data to match the target system format, data is ready for analysis, reporting and visualization. Enhanced data quality coupled with optimized information architecture improves overall system efficiency, reduce cycle time errors, drive operational excellence, and enhance user experience.

    The process relies on massage parsers feeding custom algorithms giving these tangible aspects built upon machine-readable foundation structures to achieve real digital processes with defined aims enacted by metadata and rulesets also guided through advanced programming constructs. Successful execution of data processing devoid of flaws is crucial towards meaningful results achieved at expeditious rates consistent with achieving enterprise goals. If you are interested in knowing about data processing check out Data Science course fee.

    Data Processing Cycle:

    The data processing cycle consists of data input, data manipulation, and data output. In the input stage, we collect and organize the raw data. Then, in the manipulation stage, we use techniques like summarizing, classifying, and calculating to refine the data. Finally, in the output stage, we present the processed data to users through reports, charts, or graphs. Each stage is important for ensuring accurate and reliable results from the collected data. For example, the Extract, Transform, and Load (ETL) methods are used for tasks like data aggregation, filtering, sorting, data cleansing, exception handling, and report generation. Other stages, such as unit testing, integration testing, system testing, user acceptance testing, and regression testing, help ensure performance and minimize errors. By following this data processing cycle, businesses can provide faster and more accurate services, satisfy customers, and build long-term partnerships. Continuous delivery is important, but it's also essential to have checkpoints to ensure completeness and accuracy throughout the process. The below Image perfectly summarises the exact data processing flow in the simplest way. 

    Data Processing cycle diagram : 

    Types of Data Processing 

    There are three main types of data processing: batch processing, online transaction processing, and interactive processing. Let’s see each process one by one:

    • Batch Processing: Batch processing involves collecting data from input devices such as keypunch machines, reading it onto computer storage devices using magnetic tape drives or disks, processing the data with software programs written in languages like COBOL or FORTRAN, then writing the results back to another set of devices like printers or more disks. 
    • Online transactional Processing: Online transaction processing refers to transactions directly entered into an online system, usually connected to a large database, to insert, update, modify, retrieve, delete, or search for data. Interactive processing allows users to interact immediately with other computers, including databases, usually over a network connection. An example of interactive processing might be exploring databases in response to user queries.
    • Real time data processing: It is a type of data processing where transactions are processed within milliseconds after they occur. It is used primarily for financial markets, scientific experiments and to take instant business decisions. Such type of data processing gets used in stock markets and to find fraud in financial transactions. Real-time processing includes the extraction of knowledge from live streams of raw data as it arrives in an event store. 

    Data Processing Methods 

    There are many Data Processing methods some of them are as follows: 

    • Data Cleaning: This consists of correcting or removing errors, inconsistencies, and missing values in the data to make sure its accuracy and quality.
    • Data Integration: Combining data from different data sources into a single dataset, often requiring data transformation and standardization.
    • Data Transformation: changing the structure or format of data to make it easier for data analysis. This may involve changing data types, scaling, normalization, or applying mathematical functions.
    • Filtering: Selecting and extracting a subset of data based on specific criteria or conditions. It helps reduce the dataset size or focus on relevant information.
    • Aggregation: Combining multiple data points into a summary or aggregated form. This can involve calculating averages, sums, counts, or other statistical measures.
    • Deduplication: Identifying and removing duplicate records or entries from a dataset to ensure data consistency.
    • Sampling: Selecting a representative subset of data from a larger dataset for analysis or testing purposes. It helps in reducing computational complexity while maintaining data integrity.
    • Data Discretization: Converting continuous data into discrete categories or intervals. This is often used in machine learning or data mining tasks.
    • Data Encoding: Converting categorical or textual data into numerical representations to enable analysis and modeling. Examples include one-hot encoding, label encoding, or embedding techniques.
    • Feature Extraction: Deriving new features or variables from existing data to capture important patterns or reduce dimensionality. Techniques like principal component analysis (PCA) or factor analysis are commonly used.
    • Data Reduction: Reducing the size of the dataset while preserving its integrity and important information. Techniques such as feature selection or dimensionality reduction can be employed.
    • Data Mining: Exploring large datasets to discover patterns, correlations, or insights using techniques like clustering, association rules, or classification algorithms.
    • Statistical Analysis: Applying statistical methods to analyze and interpret data, including descriptive statistics, hypothesis testing, regression analysis, or time series analysis.
    • Data Visualization: Representing data visually through charts, graphs, or interactive visualizations to facilitate understanding and decision-making.

    Above mentioned methods are generally used in combination to process and analyze data effectively, depending on the specific goals and requirements of a particular project.

    Data Processing Tools 

    There are several data processing systems you can use as per your requirement. In today tech savvy world along with programming languages, people have built many great tools which are easy to learn and play crucial roles in achieving organisation’s goals. Some of the tools are as follows: 

    • Python - Python is a high-level, interpreted general-purpose programming language that provides a dynamic type of system, automatic memory management and supports multiple paradigms such as procedural, object-oriented, functional programming, among others. It has powerful libraries for scientific computing and data processing, and it serves as the foundation for many other libraries and frameworks commonly used for data processing.
    • Apache Spark - Apache Spark is a fast, open-source cluster engine for executing parallel jobs. At its core is the Spark Core, which includes Spark Streaming, MLLib (Machine Learning), SQL, and Spark Core. With Spark, developers are able to perform distributed data processing, streaming, and machine learning tasks quickly and easily, and can scale up to thousands of nodes.
    • Google Cloud Dataproc - Google Cloud Dataproc is part of the Google Cloud Platform services suite that makes it easy to set up and manage large clusters running various open-source frameworks and tools. This managed cluster platform simplifies the deployment, operation, and scaling of data processing frameworks such as Apache Spark, Apache Flink, PrestoDB, and others while taking advantage of Google’s infrastructure reliability and performance.
    • Apache Kafka - Apache Kafka is a free and open-source software project written in Java and Scala that acts as a real-time stream-processing pipeline. Its goal is to make it possible to build very reliable and scalable data pipelines that pass trillions of messages per day between millions of machines. In practice, it is most often used as a building block within custom applications rather than being used directly via an API or UI. However, there exists other sub-projects like Apache Pulsar built on top of Kafka with aims at increasing user-friendliness, adding new features, and breaking things out into smaller units so users only need to deploy components related to their specific use cases rather than having to deal with configuring functionality for Pub/Sub messaging generally.
    • Amazon Redshift - Amazon Redshift is a petabyte-scale data warehouse product that forms part of the larger cloud-computing platform Amazon Web Services. It is one of the best data processing software out there. It is built on top of technology acquired through the acquisition of ParAccel. Running on fully managed AWS infrastructure, Redshift offers a complete family of SQL and analytics functions for business intelligence and development teams; allowing to go from zero datasets to external endpoints with graphics in just minutes and at scale at low costs compared to traditional premise-based solutions via reserved instances. (Currently $8.4K / year for flex plus the rate at the time of writing)

    Data Processing Examples 

    There are many examples of data processing that involve collecting and analysing large amounts of data using automation tools such as databases, spreadsheets, and software programs like Excel or Google Sheets. For example, retailers use data processing to track customer purchases, inventory levels, and sales trends, while financial institutions use data processing to monitor transaction histories and detect fraudulent activity. Other common applications of data processing include medical research studies, where data needs to be collected from test subjects and analyzed for statistical significance, market analysis by businesses looking into consumer behavior patterns for future projections, and environmental monitoring which uses sensors in different parts of the earth like oceans or atmosphere collect huge amounts of data on several parameters and then process them.

    Moving From Data Processing to Analytics 

    Moving from simple data processing to advanced analytics involves taking raw data and applying statistical models and algorithms to extract insights and knowledge. This can involve identifying patterns or trends within datasets, predicting future events based on historical data, understanding relationships between variables, and making recommendations based on the results of these analyses. For example, companies may use predictive modeling techniques like decision trees or artificial neural networks to identify opportunities for new product development, risk management, or cost savings. In other cases, organizations might leverage unstructured data sources like social media posts or web logs to build more accurate customer profiles for targeted advertising campaigns. Ultimately, moving beyond basic data processing toward applied analytics requires significant technical expertise in areas like statistical analysis and machine learning.

    Future of Data Processing 

    As technology continues to evolve, there are likely to be some exciting advancements in the field of data processing in the coming years. Some potential developments that could shape the future of data processing include:

    • Even greater integration of humans and machines, allowing for seamless collaboration and efficient data exchange across multiple platforms and devices.
    • Heightened focus on security and privacy, with solutions implemented to protect sensitive information and prevent data breaches.
    • Greater efficiency through intelligent automation systems, reducing human involvement in time-consuming and routine tasks.
    • Wider adoption of cloud computing services, enabling faster, easier access to massive amounts of data at lower costs.
    • Advancements in natural language processing (NLP) and natural language generation (NLG), resulting in smarter and more intuitive communication channels between users and their data processing systems.
    • More specialized applications of data processing technologies in specific industries, tailored to address unique challenges and opportunities facing each sector.

    Of course, only time will tell what specific changes will emerge and how they might impact the practice of data processing overall, but we should expect continued innovation and progress in this fascinating area of study and work.

    Choose the Right Course 

    As data processing is a hot and trendy topic, many organisations offer excellent courses but choosing the right course is the art in itself. before selecting any course, one should consider a few points they are as follows: 

    1. Assess your goals and requirements
    2. Research course content and syllabus
    3. Consider the level of expertise
    4. Check for hands- on exercise and projects
    5. Read reviews and testimonials.
    6. Evaluate the course duration and commitment

    Knowledgehut provides excellent courses which are curated considering all above points so if you want to dive deep into the field of data processing with KnowledgeHut’s Machine Learning course for beginners

    Conclusion 

    In conclusion, data processing has become a crucial aspect of modern computing and business operations, allowing organizations to store, analyze, manipulate, and extract insights from vast amounts of raw data. With advancements in hardware and software technologies, combined with evolving standards and practices in areas like privacy protection and security, there is no shortage of demand for skilled professionals trained in the field of data processing. As the world becomes more connected and automation continues to drive efficiency improvements across industries, the need for efficient, scalable methods to handle data processing will only continue to grow. It is truly exciting to think about how far we have come since punch cards and calculators were used to process data, but at this rate, who knows where the future will take us next.

    Frequently Asked Questions (FAQs)

    1What are the 4 stages of data processing?

    Four stages of data processing are as follows.

    • Data input
    • Data Processing
    • Data Storage
    • Data output

    It's important to note that these stages are not always linear or strictly sequential. In many cases, data processing involves iterative loops or feedback loops between stages, allowing for refinement or adjustment based on intermediate results or user feedback.

    2What is data processing and types?

    "Data Processing" means converting raw inputs into usable information by applying methods or mathematical formulas, e.g., calculating averages or joining data tables. This supports improved understanding and better decision-making outcomes."

    "Data Type" stands for the kind of data involved (text, number, date, etc.) which can then be organized into columns and rows forming relational databases that lend themselves to efficient computations, easy updates and accessible retrieval by users worldwide as needed once it's properly processed.

    3What are the 5 characteristics which drives effective data processing?

    Five key characteristics drive effective data processing:

    1. Timeliness
    2. Consistency
    3. Completeness
    4. Accuracy
    5. Clarity
    4What are the different types of data processing?

    There are several kinds of data processing methods including but not limited to:

    1. Manual Data Processing:
    2. Batch Processing
    3. Real-time Processing
    4. Parallel Processing
    5. Distributed Processing
    Profile

    Sameer Bhale

    Author

    Sameer Bhale is a Senior Data Analyst working at JP Morgan Chase & Co., He is helping firms in taking data-driven decisions to improve customer experience using the power of data. Previously, Sameer worked as an analyst for a tech software company. He graduated with Distinction from IIIT Bangalore with a post-Graduate data science degree.”

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