Batch Processing: Definition | Xenoss AI and Data Glossary

When should you use batch data processing?

Companies typically use batch processing software to elaborate large data volumes in the following cases.

The data is not used for real-time decision-making.
The system is designed to process large data volumes (e.g., transaction logs).
There are periods when the system is idle (i.e., it ingests no incoming data).
The data is used for repetitive tasks that do not require human supervision.

Batch vs stream processing

It is easier to understand the key features of batch processing by examining it side by side with a commonly used alternative, stream processing.

Feature	Batch processing	Stream processing
Data ingestion	Large data volumes collected over time and processed in batches	Continuous data processing in real time
Latency	High, data is processed with a significant delay after the ingestion	Low, the data is processed as soon as it is collected
Use cases	Payroll, billing systems, end-of-day reporting, ETL	Fraud detection, sensor data processing, live analytics
Implementation complexity	Lower due to predefined datasets	Higher due to the pressure to maintain low latency
Fault tolerance	The recovery is easier due to the ability to rerun failed batches	Requires complex fault tolerance mechanisms to keep processing data in real time

How does batch processing work?

Batch processing typically comprises four stages.

Data gathering process: collecting data input over an extended period of time.
Data loading: collected data is stored in a system.
Processing: the system automatically activates data transformation workflows.
Data output: the data is shared with teams in a usable format (e.g. a report or a dashboard).

Batch processing use cases

Let’s examine the most common applications of batch processing.

Finance

Financial teams use batch processing for end-of-day transaction processing, fraud surveillance, and risk management.

Healthcare

Batch processing is used in multiple areas of healthcare, from computational chemistry and drug research to genomic sequences and genetic testing. This processing approach allows scientists and clinicians to aggregate large amounts of data that inform research decisions and improve the understanding of biochemical processes.

Advertising and media

Brands and media companies use batch processing to process data (visuals, files, content metadata) to accelerate content and campaign management, scale operations, and automate creative workflows.

Batch processing