Batch Processing
Batch processing executes a group of transactions or data entries all at once, rather than individually in real-time.
Batch processing involves collecting and storing data over a period and then processing it in 'batches' at a scheduled time or when a certain volume is reached. Instead of handling each item instantly as it arrives, multiple items are grouped together and processed simultaneously.
For small businesses, this approach is often used for tasks that don't require immediate action and can be more efficiently done in bulk. For example, processing payroll for all employees once a week, generating monthly invoices for all clients, or updating inventory records overnight.
Batch processing can be very efficient for large volumes of data or tasks that consume significant computing resources, as it optimizes resource usage by running during off-peak hours. It helps streamline routine administrative and financial operations.
A small online subscription service uses batch processing to generate and send all monthly invoices to its customers overnight, rather than sending them one by one as each subscription renews.