Difference between Data and Information

This article will help you to learn about the difference between data and information.

Difference between Data and Information

Data consist of raw facts, such as customer names and addresses.

Information is a collection of facts organised in such a way that they have more value beyond the facts themselves.

For example, a database of customer names and purchases might provide information on a company’s market demographics, sales trends, customer loyalty/turnover, and so forth.

Turning data into information is a process or a set of logically related tasks performed to achieve’ a defined outcome. This process of defining relationships between various data requires knowledge. Knowledge is defined as the body or rules, guidelines, and procedures used to select, organise, and manipulate data to make it suitable for a specific task.

Consequently, information can be considered as data made more useful through the appli­cations of knowledge. The collection of data, rules, procedures, and relationships that must be followed are contained in the knowledge base.

Characteristics of Valuable Information:

In order for information to be valuable it must have the following characteristics:

1. Accurate:

Accurate information is free from error.

2. Complete:

Complete information contains all the important facts.

3. Economical:

Information should be relatively inexpensive to produce.

4. Flexible:

Flexible information can be used for a variety of purpose, not just one purpose.

5. Reliable:

Reliable information is dependable information.

6. Relevant:

Relevant information is important to the decision-maker.

7. Easy and simple:

Information should be easy to find and simple to understand.

8. Timely:

Timely information is readily available when needed.

9. Verifiable:

Verifiable information can be checked to make sure it is accurate.