Electronic data processing
Encyclopedia
Electronic Data Processing (EDP) can 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.
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. (Joe Lyons formed a separate company to develop the LEO computers and this subsequently merged to form English Electric Leo Marconi and then International Computers Ltd.)
Early commercial systems were installed exclusively by large organizations. These could afford to invest the time and capital necessary to purchase hardware, hire specialist staff to develop bespoke software and work through the consequent (and often unexpected) organizational and cultural changes.
At first, individual organizations developed their own software, including data management utilities, themselves. Different products might also have 'one-off' bespoke software. This fragmented approach led to duplicated effort and the production of management information needed manual effort.
High hardware costs and relatively slow processing speeds forced developers to use resources 'efficiently'. Data storage
formats were heavily compacted, for example. A common example is the removal of the century from dates, which eventually led to the 'millennium bug'.
Data input required intermediate processing via punched paper tape or punched card
and separate input to a repetitive, labor intensive task, removed from user control and error-prone. Invalid or incorrect data needed correction and resubmission with consequences for data and account reconciliation.
Data storage was strictly serial on paper tape, and then later to magnetic tape
: the use of data storage within readily accessible memory was not cost-effective.
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 Microsoft products such as Office, or 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 standardized. Relational databases are developed by different suppliers to common formats and conventions. Common file format
s 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).
History
The first commercial business computer was developed in the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
in 1951, by the J. Lyons and Co.
J. Lyons and Co.
J. Lyons & Co. was a market-dominant British restaurant-chain, food-manufacturing, and hotel conglomerate founded in 1887 as a spin-off from the Salmon & Gluckstein tobacco company....
catering organization. This was known as the 'Lyons Electronic Office
LEO computer
The LEO I was the first computer used for commercial business applications. Overseen by Oliver Standingford and Raymond Thompson of J. Lyons and Co., and modelled closely on the Cambridge EDSAC, LEO I ran its first business application in 1951...
' - or LEO for short. It was developed further and used widely during the 1960s and early 1970s. (Joe Lyons formed a separate company to develop the LEO computers and this subsequently merged to form English Electric Leo Marconi and then International Computers Ltd.)
Early commercial systems were installed exclusively by large organizations. These could afford to invest the time and capital necessary to purchase hardware, hire specialist staff to develop bespoke software and work through the consequent (and often unexpected) organizational and cultural changes.
At first, individual organizations developed their own software, including data management utilities, themselves. Different products might also have 'one-off' bespoke software. This fragmented approach led to duplicated effort and the production of management information needed manual effort.
High hardware costs and relatively slow processing speeds forced developers to use resources 'efficiently'. Data storage
Computer storage
Computer data storage, often called storage or memory, refers to computer components and recording media that retain digital data. Data storage is one of the core functions and fundamental components of computers....
formats were heavily compacted, for example. A common example is the removal of the century from dates, which eventually led to the 'millennium bug'.
Data input required intermediate processing via punched paper tape or punched card
Punched card
A punched card, punch card, IBM card, or Hollerith card is a piece of stiff paper that contains digital information represented by the presence or absence of holes in predefined positions...
and separate input to a repetitive, labor intensive task, removed from user control and error-prone. Invalid or incorrect data needed correction and resubmission with consequences for data and account reconciliation.
Data storage was strictly serial on paper tape, and then later to magnetic tape
Magnetic tape
Magnetic tape is a medium for magnetic recording, made of a thin magnetizable coating on a long, narrow strip of plastic. It was developed in Germany, based on magnetic wire recording. Devices that record and play back audio and video using magnetic tape are tape recorders and video tape recorders...
: the use of data storage within readily accessible memory was not cost-effective.
Today
As with other industrial processes commercial IT has moved in all respects from a bespoke, 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 company.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
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
and IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
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 Microsoft products such as Office, or 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 standardized. Relational databases are developed by different suppliers to common formats and conventions. Common file format
File format
A file format is a particular way that information is encoded for storage in a computer file.Since a disk drive, or indeed any computer storage, can store only bits, the computer must have some way of converting information to 0s and 1s and vice-versa. There are different kinds of formats for...
s 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).
See also
- Computer data processing
- ComputingComputingComputing is usually defined as the activity of using and improving computer hardware and software. It is the computer-specific part of information technology...
- Data processing system
- Information TechnologyInformation technologyInformation technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...