Data and Information
Data and information are closely related but not the same. Understanding the difference between them is essential because businesses make decisions based on processed and meaningful information, not just raw data.
Definitions
Data
Definition: Raw facts and figures that have no context or meaning by themselves.
Examples: 45, “Colombo”, “John”, 10/08/2025.
Key Point: Data on its own is unprocessed and may be meaningless until it is organised or analysed.
Information
Definition: Data that has been processed, organised, and given meaning so it is useful for decision-making.
Examples: “John is 45 years old and lives in Colombo as of 10 August 2025.”
Key Point: Information is processed data that provides context and relevance.
Relationship Between Data and Information
Collection: Data is gathered from various sources.
Processing: Data is sorted, classified, calculated, or analysed.
Output: The result is meaningful information.
Formula:
Information = Data + Context + Meaning