Understanding The Difference Between Data, Information And Business Insights


The Information came into the English language from the 1300 s. A data is like input to a computer and information is an output from a computer. This sentence contains the full details of John’s walking. And it contains several kinds of data like John , 10 , a day etc. I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because I wanted my readers to stay ahead in this hectic business world. Information are considered more reliable because the proper analysis is conducted to convert data into information.

explain the difference between data and information

For example, in the above-mentioned employee database, when age is calculated from the date of birth and it will be a piece of information that can be used in further processing. So we came to know that data could be anything and it may contain some valuable information or it may not be which need to be analyzed to get information out of it. For example, your investment in share markets is common nowadays. This is because data is simply a raw piece of information such as a simple fact, name, number, or address. Despite its association with technology, data does not need computers or databases to exist. Data existed before computers and will continue to exist if computers disappear off the face of the planet.

Artificial intelligence and machine learning can now be applied effectively in order to generate insights from data. Information is a type of data which is processed, structured, organized, and has a specific meaning. It is an understandable form of data and is more reliable than data. Data can only be used in research only after it is processed and converted into information. The word information has French origin and its meaning is “act of informing”. Data is cleaned, refined and pass through various processes to convert into information.

Examples Of Data And Information

This is the easiest way to differentiate between the two. Data is something that you give as input for processing. After processing, what you get as output is the information. Information is seen as Language, ideas, and thoughts that are based on the data. A data graph is a graphical representation of the data as a bar chart, line chart, or pie chart. The data tree format stimulates a hierarchical tree structure with a root node and a number of child nodes.

explain the difference between data and information

Information is a set of data which is processed in a meaningful way according to the given requirement. Information is processed, structured, or presented in a given context to make it meaningful and useful. There is a subtle difference between data and information. Data are the facts or details from which information is derived. For data to become information, data needs to be put into context. In the world of business, data are often raw numbers and information is a collection of individual data points that you use to understand what you’ve measured. The word datum is still the technically correct singular form of data but is rarely used in common language.


The information contains a huge number of data from several sources. While data is an unsystematic fact or detail about something, information is a systematic and filtered form of data, which is useful. In this articl, you can find all the important differences between data and information.

explain the difference between data and information

Given that it is raw, this type of data, which is also oftentimes referred to as primary data, is jumbled and free from being processed, cleaned, analyzed, or tested for errors in any way. As stated, raw data is unprocessed and unorganized source data that once it’s processed and categorized becomes output data. Data are simply facts or figures — bits of information, but not information itself. When data are processed, interpreted, organized, structured or presented so as to make them meaningful or useful, they are called information. The manipulated and processed form of data is called information. Data is used as input for processing and information I output of this processing.

Data does not make any sense but Information extracted from it makes sense as discussed already. The organized form of the same data that make sense is called Information. Data is unorganized, randomly collected facts and figures which could be processed to draw conclusions as per the need. This kind of scenario is mostly due to incomplete data or a lack of context. Now that you understand the difference between data and information and how both can be leveraged to promote various viewpoints, you can read things with a more critical eye. Because information can be spun and twisted easily based on what particular bits of data are used, a general consensus is that “data” tend to be more objective and “information” more subjective.


Information is an older word that we have been using since 1300’s and have a French and English origin. It is derived from the verb “informare” which means to inform and inform is interpreted as to form and develop an idea. Data doesn’t interpret anything as it is a meaningless entity, while information is meaningful and relevant as well.

A manager on the hotel side of the business, for instance, doesn’t care much about profitability at the poker tables, while a pit manager doesn’t have much use for hotel housekeeping reports. The reports that an accountant needs would hardly be the same as those needed by a human resources manager. First-line managers require information that helps them supervise employees, oversee daily operations, and coordinate activities.

Data becomes information, which in turn is processed as knowledge, then finally manifested in a physical way as decisions and actions. Sometimes when data are missing and the information is incomplete, a person may make an assumption, where basically they fill in the blanks of the missing data. Each of these concepts are integral to the other two and without one, the others would cease to exist. This flow chart will help you visualize the processing of data. Information, like data, is a term that has applications when dealing with computers. If data are the tidbits that are put into the computer, it’s information that comes out as a result. If a company’s marketing department inputs data culled from their customers, their program is able to give them pertinent information based on the data it was given.

Data can be structured, tabular data, graph, data tree whereas Information is language, ideas, and thoughts based on the given data. Data measured in bits and bytes, on the other hand, Information is measured in meaningful units like time, quantity, etc. Data is a raw and unorganized fact that is required to be processed to make it meaningful whereas Information is a set of data that is processed in a meaningful way according to the given requirement.

  • But modern data analytics technologies can yield business insights that go far beyond what tables and charts can reveal.
  • Data is raw, unanalyzed, unorganised, unrelated, uninterrupted material which is used to derive information, after analyzation.
  • Data are collected through various observations and measurements.
  • After data becomes information, it can become knowledge when it has an application or use.

The term byte was first coined by Werner Buchholz in 1956 and it represents this unit of data measurement, which is eight binary digits long. All computers use bytes to represent all kinds of information including letters, numbers, images, audio, videos, and more. Given that all information in computers is larger than a bit, the byte is considered the universal and smallest measurement size listed in operating systems, networks, etc. Data and information are measured in bits and bytes. It can be represented in structured/unstructured tables, graphs, trees, etcetera, and it doesn’t have significance until it is analyzed to meet a specific user’s needs. Whether qualitative or quantitative, data is a set of variables that help construct outcomes.

Fortunately, you’ve known from day one that each test counts 20 percent, each paper 10 percent, and the final exam 40 percent. —data that have been processed, or turned into some useful form. Knowing the questions that you missed simply supplied you with some data for calculating your scores. Information is some data that can be refine, resulted, inferred or gained by analysis on data. Some process needs to making the data useful and turned to Information. Absolutely the amount of Information is less that Data at all. Connect and share knowledge within a single location that is structured and easy to search.

For example, it takes about 10.5 megabytes to store one minute of high-quality stereo digital sound and at this rate, one hour of music takes up to 600 megabytes of storage space. A one-minute-long video that is high-definition takes approximately 100 megabytes of storage space. As the base of measure for digital information, bits and bytes play a fundamental role in the subjects of data and information.

You can not make a decision on the basis of raw facts and figures. And if you do so, then there is a high priority that the decision may be wrong as it will rely on assumptions. With meaningful data i.e Information, an organization or a business entity can make a decision. There is no meaning that can be derived from raw data and it cannot be utilized anywhere. In terms of computers, the term information means, “important or useful facts obtained as output from a computer by means of processing input data with a program”. And generally, we say, “Data is a collection of raw facts and figures that we need to process to extract meaning or information”. The dictionary meaning of the word data is,“Facts and statistics collected together for reference or analysis”.