Data processing involves the process of collecting, arranging, changing and analyzing the data in order to form meaningful information from the collected data. When you want to know what is data processing or what does data processing mean, then you should understand that data processing is the transformation of unstructured data into structured data for better decision making. Data processing is defined as the process of data collection, validation, sorting, calculations, analysis and reporting. It is important for a business organization to have an effective data processing system in place in order to ensure efficiency and accuracy. Regardless of whether the data relates to customers, finance, stock or sales, effective data and data processing enables an organization to take well-informed decisions.