Electronic data processing

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.

History

Electronic data processing in the Volkswagen factory Wolfsburg, 1973

The first commercial business computer was developed in the United Kingdom in 1951, by the Joe Lyons 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 lead to the 'millennium bug'.

Data input required intermediate processing via punched paper tape or 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.

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== Electronic Data Processing (EDP) Managers ==

Electronic Data Processing (EDP) Managers California Occupational Guide Number 348 Interest Area 111995

THE JOB

In every industry there is need for managers to plan and direct the activities of all organizational functions. Industries that use computers employ ELECTRONIC DATA PROCESSING (EDP) MANAGERS to control the various activities related to the operation of the firm's mainframe computer or its client-server network, as well as all of the peripheral equipment. Major users of EDP systems are banks, public utilities, transportation and insurance companies, large manufacturing firms, and government and educational establishments. Computer equipment manufacturers and independent computer service firms also operate computer centers on a fee or contract basis. While the EDP unit often operates as an independent center, serving all departments of the establishment under an executive officer, it is often attached to another department, such as accounting.

In some firms, an EDP Manager may be responsible only for computer production: data entry, data control, equipment scheduling, and quality control. In such firms, another EDP Manager takes care of programming, program maintenance and systems analysis functions. Frequently, however, the EDP Manager is in charge of all of these activities.

As head of computer production units, EDP Managers plan and direct the operation of the electronic data processing equipment, and select, train, supervise and evaluate the work of the computer operations staff. In planning the work of the department, EDP Managers evaluate the relative importance of various projects and determine job priorities. They review the requirements of each project, assign machine time and personnel to complete it, and coordinate all projects to produce a continuous work flow and meet deadlines established by management of user departments. Since idle machines are expensive to the organization, one of the prime responsibilities of the EDP Managers is the effective utilization of all data processing equipment through scheduling.

When their departments encompass programming and systems analysis, EDP Managers generally review and approve all systems charts and programs prior to their implementation. They may also spend much time with the analysts working out the requirements of a proposed job, defining the problem and developing the program. If the EDP Manager is not directly responsible for new programs, he/she is usually consulted about the data operations or other aspects of a new program, and may confer with programmers and analysts regarding program problems that arise during a machine run.

WORKING CONDITIONS

EDP Managers work in well-lighted and well-ventilated rooms. However, the temperature where the data processing equipment is located is kept lower than normal in order to counteract the heat generated by the machine operations. EDP Managers are exposed to noises in the room from the low hum of the tape or disc drives to the high-speed sound of the printers. Meeting deadlines, satisfying the demands of user departments, and solving personnel problems are potential causes of stress in this occupation; therefore, EDP Managers should have emotional stability and patience as well as organizational ability. Effective job performance generally requires that EDP Managers be able to stand and move about with ease and have mobility of arms and hands. Good vision is essential since this job demands considerable reading and other close work. WAGES, HOURS, AND FRINGE BENEFITS

EDP Managers' salaries tend to vary widely in line with such factors as the nature and size of the employing establishment, the level of the position and the degree of responsibility entailed. Salaries also vary depending upon the type of installation, i.e., utilizing a single computer manufacturer's line or using various computers manufactured by different companies. Beginning salaries start at approximately $4,500 to $6,000 per month.

Those with experience may earn from $6,700 to $8,500 or more per month. Highly experienced individuals may earn up to $10,500 or more per month. Managers working for the State of California start at about $6,000 per month, and may promote to manager IV, which has a maximum salary of $8,404 per month.

Those who have the higher salaries are generally responsible for directing programming and systems analysis as well as EDP operations. The work week is nominally 40 hours; however, most data processing managers find it necessary to work overtime to handle peak workloads and to compensate for unavoidable delays in the regular schedule.

Fringe benefits usually include paid vacation a year, paid holidays, sick leave and health benefits. Some organizations provide a retirement and profit-sharing plans.

ENTRANCE REQUIREMENTS AND TRAINING

Most employers require EDP Managers to have a bachelor's degree in business administration, engineering, or computer science. Three to five years experience in data processing is usually required of EDP Managers. Demonstrated supervisory ability, along with the required experience and training is highly desirable. Managers should be familiar with program languages such as COBOL or FORTRAN. In most establishments, a broad knowledge of the firm's activities, gained through experience in accounting production, inventory control, or other specialized activities is considered an asset when combined with EDP experience.

ADVANCEMENT

Because of the evolving nature of EDP programming and equipment, it is important that the EDP Manager engage in continuing self-education. Several lines of advancement may be open to the EDP Manager depending on the organizational structure of his firm. Where systems and procedures functions are separate from machine operations, management of this overall planning unit may constitute a promotion. If the EDP unit is a part of the accounting department, the manager may advance to chief accountant or controller provided he has the necessary accounting background. Elsewhere, the EDP Manager may be in line for promotion to other managerial or administrative posts since directing data processing activities provides the opportunity to become familiar with most of the firm's activities. Furthermore, as the job of the EDP Manager grows in complexity and scope, these constitute an upgrading in itself with no reassignment of duties.

See also

• Computing
• Information Technology