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EDP (Electronic Data Processing)

Electronic data processing (EDP) is a generic term that describes a system of hardware, software, procedures, and personnel that work together to sort and process data so that it can be used for a variety of purposes. Examples of electronic data processing systems include accounting systems, barcode scanning systems, record-keeping systems, and other systems that use a variety of software, hardware, procedures, and personnel to simplify the data sorting and processing workflows.

What Small and Midsize Businesses Need to Know About EDP (Electronic Data Processing)

Small and midsize businesses typically use electronic data processing to get faster access to company data and reduce human errors. In an EDP system, information can be stored instantly and easily retrieved through either the internet or the company’s network. For instance, most small retail businesses use a barcode scanner system to track their inventory electronically and automate the inventory repurchasing process. When a retailer rings up items, they scan the barcode of the items a customer wishes to purchase. The barcode scanner then captures the code, processes it, and relays information about the item to a computer processor to update the store inventory.

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