3 of 4

Write now Article Tools

Persons often use the terms "data" and "information" interchangeably. This is not appropriate, however. "Data" and "information" are related terms but you should not use one in place of the other. In the simplest terms, information is processed data. Data refers to "raw material for data processing" (BPP's ACCA textbook). The processing of data can take place in the mind (cognition) or it can be refer to the actual transformation of data by organizing, filtering, analysing and presenting it in a certain way. Therefore, we use data to create information.

The interesting aspect of this is that if you are able to glean some information by looking at disorganized data, then the data is information. A good example is the use of a code with which you are unfamiliar. The data in that context can only become information until you can decode the data so that you can understand it or it makes sense to you. However, to someone who knows the code, that data may be information already.

Some data may be in a form that humans can understand, but it remains meaningless without proper context. For example, if you conduct a survey among 100 persons, the completed questionnaires constitute raw material that you must convert to information by analysing and reporting your findings. You can read each individual questionnaire and understand it, but- in the context of the survey- it is not information until you amalgamate, analyse and present it.

The important thing to note is that information is a certain context can provide data for another context. For example, in accounting, you can use invoices and receipts for tallying total expenses. The total expense figure would be information if that context. However, when you use that information in the income statement, data- data will provide information about the profitability of the business.

Data in different contexts can be facts, figures, transactions, events, opinions or even photographs. That list is by no means exhaustive. It is likely that the context can blur the distinction between data and information. However, the distinction is important in data processing, whether in fields such as IT and accounting or for processes such as decision-making and report writing.

Another critical point to recap is that information is meaningful and properly communicated. Information that is not compiled in accordance with certain standards may be far less meaningful. For this reason, many industries have standards that govern the presentation of information

Learn more about this author, Darrell Victor.
Click here to send this author comments or questions.

Add your voice

Know something about The difference between data and information?
We want to hear your view. Write now!