Data processing involves manipulating data into more useful forms by collecting, processing, and distributing facts and figures to achieve desired results. There are two main categories of data processing: mechanical and electronic. Mechanical data processing uses manual procedures and mechanical equipment like typewriters and sorters, while electronic data processing interconnects input, output, and storage devices to a computer. The basic data processing cycle includes input, processing, and output steps, but an expanded cycle also includes origination, storage, and distribution steps.