How does Online Processing operate?

Online processing is a method of handling data where operations are executed immediately as the data is entered into the system. This approach is ideal for scenarios where timely processing is crucial, such as in banking transactions, airline reservation systems, or e-commerce applications. When data is input, the system processes it right away, ensuring that users receive immediate feedback and that data is up to date. This capability supports real-time decision-making and enhances the overall user experience by providing instant results.

In contrast, other methods like batch processing, where data is collected and processed in groups, or storing data for later execution, do not provide the immediacy that online processing offers. Additionally, while managing data across distributed systems can be an aspect of some online processing systems, it does not define the core operation of online processing itself, which is focused on immediate execution upon data entry.