Data Processing V/s Data Managemnet System

Although data processing and data management system both refer to function 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 large volume of raw transaction data fed into program that update a master file, with fixed-format report written to paper.

The term of Data Management System refers to an expansion of this theory, where the raw data, previously copied manually from  paper to punched card and latter into data entry terminals, is now fed the system from a diversity of resources, including ATMs, EFT and direct customer entry through the internet. The concept of master file has been mainly relocated via database management systems and static reporting  replaced or improved by Ad-Hoc reporting and express 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 Data management Systems.