The Difference between Data and Information

We talk often about Information - the "I" in ICT. 

But what is information? 

How does it differ from "data"? 

And what kind of information does a business require? 

  It is important that you understand the difference between "data" and "information"

Data

Think of data as a "raw material" - it needs to be processed before it can be turned into something useful. Hence the need for "data processing". Data comes in many forms - numbers, words, symbols. Data relates to transactions events and facts. 

On its own - it is not very useful.

Think of the data is created when you buy a product from a retailer. 

This includes:

• Time and date of transaction (e.g. 03:00 Saturday 18 May 2013)
• Transaction value (e.g. $55.00)
•  Facts about what was bought (e.g. hair dryer, cosmetics pack, shaving foam) and how much was bought (quantities)
• How payment was made (e.g. credit card, credit card number and code)
• Which employee recorded the sale
• Whether any promotional discount applied

At its simplest, this data needs processing at the point of sale in order for the customer to receive a valid receipt. So the data about transaction is processed to create "information" - in this case a receipt. 

You can imagine that the same data would also be useful to the manager of the retail store. For example, a report showing total sales in the day, or which are the best-selling products. So the data concerning all shop transactions in the day needs to be captured, and then processed into a management report.

Information

The above example demonstrates what information is.

• Information is data that has been processed in such a way as to be meaningful to the person who receives it.

Note: 

• The two words highlighted in red -"processed" and "meaningful". It is not enough for data simply to be processed. It has to be of use to someone - otherwise why bother?!

Data

1. Marks for 04 subjects for a student.
2. Height of 20 children in class.
3. Wages (salaries) of Employees.

Information

1. Total and Average marks of the students.
2. Heights of the children arrange in ascending order.
3. Names of the employees whose salary is greater than $ 1000.

Characteristics of Information

• Timeliness : It should be available at the correct time.
• Completeness: It should be sufficient for the purpose.
• Accuracy: It should be correct and reliable.
• Understandability: It should be clear in meaning, practical and simple.