What is meant by data processing?

Data processing is the method of collecting, organizing, and transforming raw data into meaningful output—such as reports, visualizations, or predictions. It includes steps like cleansing, filtering, aggregating, and enriching data. This is a core function within many data engineering solutions and serves as the backbone for analytics and AI.

Modern data processing can happen in batch or real-time and is often orchestrated using pipelines built by data engineering companies. Whether data comes from databases, IoT devices, or third-party APIs, efficient processing ensures it's usable across business systems.