EDP - Electronic Data Processing

Enhanced Definition

EDP, or Electronic Data Processing, refers to the use of electronic computers to process commercial data, primarily for business applications. It represents the foundational era of automated data handling, where large volumes of structured data were processed systematically to support organizational operations. In the mainframe context, EDP was synonymous with the core function of these powerful systems. EDP, or Electronic Data Processing, is a historical term referring to the use of electronic computers to process commercial data, primarily for business applications. In the mainframe context, it describes the systematic handling of large volumes of structured data, often in batch mode, to support an organization's operational and analytical needs. It represents the foundational era of automated business computing.

Key Characteristics

- Batch Processing Dominance: EDP systems were primarily designed for batch processing, where transactions were collected over a period and processed together in a single run, often overnight or during off-peak hours, to maximize efficiency.
- Centralized Data Management: Data was typically stored and managed centrally on large storage devices like magnetic tapes and DASD (Direct Access Storage Devices), accessed by a central mainframe computer.
- Procedural Programming: Applications were predominantly written in procedural languages like COBOL and PL/I, focusing on step-by-step data manipulation, calculations, and report generation.
- High Throughput and Reliability: Mainframe-based EDP systems were engineered for high throughput, processing millions of transactions reliably and consistently, crucial for mission-critical business functions.
- Resource-Intensive Operations: Early EDP operations were often resource-intensive, requiring dedicated operators, specialized environments (e.g., raised floors, climate control), and careful scheduling of jobs.

Use Cases

- Payroll Processing: Calculating employee salaries, deductions, and generating paychecks or direct deposit files based on timecard data and employee records.
- Customer Billing: Generating monthly utility bills, credit card statements, or insurance premium notices from usage or transaction records.
- Inventory Management: Tracking stock levels, processing orders, and managing supply chain logistics for large enterprises by updating inventory databases.
- Financial Transaction Processing: Recording and reconciling bank transactions, updating account balances, and generating financial reports for banks and other financial institutions.
- Report Generation: Producing various operational and management reports, such as sales figures, expense summaries, and audit trails, for business analysis and decision-making.

Related Concepts

EDP is the historical precursor to modern Information Technology (IT) and data processing. It laid the groundwork for concepts like batch jobs, which are still fundamental in z/OS environments, executed via JCL (Job Control Language). The programming languages like COBOL and PL/I, developed during the EDP era, remain critical for many legacy mainframe applications. EDP systems often utilized IMS (Information Management System) or early DB2 databases for structured data storage, and their operations were managed within data centers that evolved into today's sophisticated mainframe facilities.

Best Practices:

Data Integrity and Validation: Implement rigorous data validation routines at input and during processing to ensure the accuracy and consistency of processed data, preventing errors in critical business outcomes.
Robust Backup and Recovery: Establish comprehensive backup and recovery procedures for all data and applications to ensure business continuity and minimize downtime in case of system failures or data loss.
Efficient Resource Scheduling: Optimize job scheduling and resource allocation (CPU, I/O, memory) to maximize throughput and minimize processing windows, especially for time-sensitive batch runs.
Security and Access Control: Implement strong security measures, including physical access controls to the mainframe and logical access controls (e.g., RACF) to protect sensitive business data from unauthorized access or modification.
Documentation and Audit Trails: Maintain thorough documentation of all EDP processes, programs, and data flows, along with comprehensive audit trails, to ensure compliance, facilitate troubleshooting, and support future enhancements.