Here is a simplified workflow at a high level:
Download the raw images from the camera to the PC. Some programs rename images in the process for better organization of a large number of files. An example of a stand-alone program that does downloads and renames raw files all in one step is Downloader Pro, sold by Breeze Systems. [Editor's note: see the Downloader Pro review.]
Perform the image processing that the camera would otherwise do internally for JPEG files. Keep in mind that you are using all 12 bits per colour per pixel during this processing, and that the processing can be done over and over until you get it just right. This processing can include white/gray balance, correcting for any colour cast, exposure compensation, levels and curves adjustments, focus/sharpening, and conversion from raw to TIFF format.
Save the 16-bit TIFF file to preserve all of the colour data that was originally captured by the camera’s sensor. One of the better and widely used programs for this step is Capture One DSLR Pro or Capture One DSLR Limited Edition, developed by Phase One and available from PictureFlow. Another popular program is BreezeBrowser, also sold by Breeze Systems. [Editor's note: for more on working with BreezeBrowser and Capture One, see My D30 Workflow and My C1LE Workflow.]
Open the image in Photoshop and make any final tweaks. Capture One is powerful enough that often Photoshop may not even be required. Photoshop can also be used to resize, resample, and convert to 8-bit JPEG for web images.
Stand-alone printing programs are available that take away the work of reformatting for printing that Photoshop requires. A popular CMS-aware printing program is Qimage sold by Digital Domain.
Finally, programs are available to keep a database of thumbnails on line for images that have been archived to CD ROM or DVD ROM. Most serious photographers save their raw files, and some save the TIFFs also. This takes a lot of storage, and archiving to a medium like DVD is essential. A good example of such a program is ThumbsPlus 6 sold by Cerious Software.
So… if you want Polaroid quality prints set your camera to save JPEG files and don’t worry about colour management. But if you want to develop your own digital negatives in your digital darkroom, consider the software and techniques described in this article.