Information is processed data that is meaningful and useful. Data is raw. It is facts and figures without context. A list of temperatures is data. Knowing that the temperatures are for a specific city on a specific day, and that they are higher than average, turns it into information. Information supports decisions. Data alone does not.

The distinction matters in practice. Organizations collect enormous amounts of data. Much of it sits unused because nobody has processed it into information. A database full of customer transactions is data. A report showing that sales are declining in a specific region among a specific demographic is information. The transformation from data to information requires context, analysis, and interpretation. It also requires knowing what decision the information will support. A report designed for a marketing manager looks different from one designed for a CFO. The same data produces different information depending on the audience and the question. Information has a shelf life. Yesterday's information may be today's stale data. The value comes from timeliness as well as accuracy. Information delivered after the decision is made is history, not intelligence.

Data versus information

• Data — raw facts, no context
• Information — processed, contextualized, meaningful
• Knowledge — information combined with experience and judgment
• Wisdom — knowledge applied well over time

Data is the raw material. Information is the product. The process in between is analysis.