Difference between Data and Information

Difference between Data and Information

28 June 2023 0 By Anshul Pal



Information is the product of data processing. It is interrelated data which is equivalent to finished goods produced after processing the raw material. The information has a value in decision making. Information brings clarity and creates an intelligent human response in the mind. According to David and Olson, “Information is a data that has been processed into a form that is meaningful to recipient and its of real or perceived value in the current or the prospective action or decision of recipient.”

Data and Information

It is a most critical resource of the organization. Managing the information means managing future. Information is knowledge that one derives from facts placed in the right context with the purpose of reducing uncertainty.


The word ‘Data’ is derived from the plural of latin word ‘Datum’, which means ‘to give’. Data are raw facts or observations, typically about physical phenomena or business transactions. Data are individual units of information. It is represented by variables and contains numbers, statements, and characters in a raw form. Data is meaningless and always interpreted, by a human or machine, to derive meaning.

Data vs Information


Data Information
  • Originated at mid 17th century.
  • Originated at late middle time.
  • Data is a collection of raw facts.
  • Information is the outcome derived after processing the data.
  • May or may not be meaningful.
  • Information is always meaningful.
  • Input to any system may be treated as Data.
  • Output after processing the system is Information.
  • Understanding is difficult.
  • Understanding is easy.
  • Data must be processed to understand.
  • Information is already in understandable form, it may be processed further to make it more understandable.
  • Data may not be in order.
  • Information should be in the order.
  • Example: Statistics, numbers, characters,images.
  • Example : Reports,Knowledge.


Data and Information

We can define Information as data that have been converted into a meaningful and useful context for specific and users.

Data Resources

Data is the raw material for information system. Data constitutes an important organisation resource. We should view data as data resource that must be managed effectively to benefit all end users in an organisation. Data can take many forms including traditional alphanumeric data composed of other events and entities. Text data, consisting of sentences and paragraph used in written communications; images data, such as graphic images and figures; and audio : data the human voice and other sounds, are also important forms of data. The data resources of information system are typically organised into:

  • Databases that hold processed and organised data.
  • Knowledge bases that holds knowledge in a variety of forms such as facts, rules, and case examples about successful business practices.

Information Resources

The first step in producing information is collecting and introducing data, known as input into the information system. A system’s input are the physical object and the data that cross the boundary to enter it form its environment. Data about business transactions and other events must be captured and prepared for processing by the activity. Input devices used for entering instructions and data into computers start with a keyboard or Mouse. For the off line inputs, information system use predesigned forms.

Examples : For getting sales information from user, the system has prespecified Performa, known as form. On a command form the user, the interfacing program presents a form on the computer screen. The data filled in the form by the user, is checked by the error detecting program in the system. On correction, only the data is entered into the file, one record for each set of data on one sale’s transaction. All these methods have built in error detection and prevention provisions.

Processing of Data and Information

From the standpoint of manipulating or processing the data, the processor of the information system is the most important system is the most important component. When management and system designers have established the data that will be available as inputs to an information system, and the information desired for the output, the system designers have the major projects of designing the conversion process. The total process is actually made up of many small processes.

Example : In marketing information system, the process of addition of individual sales reports into total sales.

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