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[[Herman Hollerith]] then at the [[U.S. Census Bureau]] devised a tabulating system that included cards ([[Punched card|Hollerith card, later Punched card]]), a punch for holes in them representing data, a tabulator and a sorter.<ref name="IBM">{{cite web |title=From Herman Hollerith to IBM |url=https://womenshistory.si.edu/spotlight/tabulating-equipment/from-herman-hollerith-to-ibm |website=Because of Her Story |publisher=Smithsonian |access-date=22 August 2021}}</ref> The system was tested in computing mortality statistics for the city of Baltimore.<ref name=IBM/> In the first commercial electronic data processing Hollerith machines were used to compile the data accumulated in the 1890 U.S. Census of population.<ref>{{cite web
|url=https://americanhistory.si.edu/collections/object-groups/tabulating-equipment/from-herman-hollerith-to-ibm
|title=Tabulating Equipment, From Herman Hollerith to IBM |publisher=Smithsonian, National Museum of American History |access-date=July 6, 2019}}</ref> Hollerith's [[Tabulating machine|Tabulating Machine]] Company merged with two other firms to form the [[Computing-Tabulating-Recording Company]], later renamed [[IBM]]. The punch-card and tabulation machine business remained the core of electronic data processing until the advent of electronic computing in the 1950s (which then still rested on punch cards for storing information).<ref>{{cite web
|url=https://www.immigrantentrepreneurship.org/entry.php?rec=286#h16
|title=Herman Hollerith (1860-1929) |publisher=Immigrant Entrepreneurship |access-date=July 6, 2019}}</ref>
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Early commercial systems were installed exclusively by large organizations. These could afford to invest the time and capital necessary to purchase hardware, hire specialist staff to develop [[bespoke]] [[software]] and work through the consequent (and often unexpected) organizational and cultural changes.
At first, individual organizations developed their own software, including [[data management]] utilities, themselves. Different products might also have 'one-off' bespoke software. This fragmented approach led to duplicated effort and the production of management information needed manual effort.
High hardware costs and relatively slow processing speeds forced developers to use resources 'efficiently'. [[Computer storage|Data storage]] formats were heavily compacted, for example. A common example is the removal of the century from dates, which eventually led to the '[[millennium bug]]'.
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