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Although Data Processing and Information Systems both refer to functions that take raw data and transform it into usable information, the usage of the terms is very different. Data Processing is the term generally used to describe what was done by large mainframe computers from the late 1940's until the early 1980's (and which continues to be done in most large organizations to a greater or lesser extent even today): large volumes of raw transaction data fed into programs that update a master file, with fixed-format reports written to paper. The term Information Systems refers to an expansion of this concept, where the raw data, previously copied manually from paper to punched cards, and later into data-entry terminals, is now fed into the system from a variety of sources, including ATMs, EFT, and direct customer entry through the internet. The master file concept has been largely displaced by database management systems, and static reporting replaced or augmented by ad-hoc reporting and direct inquiry, including downloading of data by customers. The ubiquity of the Internet and the Personal Computer have been the driving force in the transformation of Data Processing to the more global concept of Information Systems.

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16y ago
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14y ago

Information Management is all about the collection, management and disposal of data from many sources and the distribution of that data to the relevant people. Normally companies have either an information management structure/process and/or an information management person/team, and there primary role is to origanise and control the structure, processing and delivery of the data/information. As information storage shifted to electronic systems, the role of the information management team has become invaluable, because of their expertise in the management of the hardware computing systems and underlying information management software systems, that are used to organise, retrieve, acquire and maintain information. Data processing is the process that uses a computer program to enter data and summarise, analyse or otherwise convert data into usable information. This process can be automated and run on computer systems without any human involvement. When data is well presented and is actually informative, data-processing systems can often be referred to as information systems.

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11y ago

information is intangible, an information system is physical

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Q: What is the difference between information management and data processing?
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