Signals may be processed using analog techniques (analog signal processing, or ASP), digital techniques (digital signal processing, or DSP), or a combination of analog and digital techniques (mixed-signal processing, or MSP). In some cases, the choice of techniques is clear; in others, there is no clear-cut choice, and second-order considerations may be used to make the final decision.
With respect to DSP, the factor that distinguishes it from traditional computer analysis of data is its speed and efficiency in performing sophisticated digital processing functions such as filtering, FFT analysis, and data compression in real time.
The term mixed-signal processing implies that both analog and digital processing is done as part of the system. The system may be implemented in the form of a printed circuit board, hybrid microcircuit, or a single integrated circuit chip. In the context of this broad definition, ADCs and DACs are considered to be mixed-signal processors, since both analog and digital functions are implemented in each. Recent advances in very large scale integration (VLSI) processing technology allow complex digital processing as well as analog processing to be performed on the same chip. The very nature of DSP itself implies that these functions can be performed in real time.

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