What is the difference between data and information?

The distinction between data and information is foundational in understanding management information systems. Data refers to raw facts and figures that have not been processed or organized in any way. Examples might include numbers, dates, or strings of text that, in isolation, may not convey any meaning.

In contrast, information is produced when data is processed, organized, or structured to provide context and meaning. For instance, when raw sales data is analyzed to show monthly sales trends, that analysis transforms the data into information that can be used for decision-making. This definition reflects the key transition from data, as unrefined inputs, to information, as meaningful outputs that drive insights and actions.

The other options misunderstand this relationship; one incorrectly suggests the permanence of information over data, while another inaccurately states that data is temporary. The notion that data is obsolete versus information being up-to-date also misrepresents the dynamic nature of both concepts. Data can be retained over time and consistently updated, while information can become outdated if not regularly renewed. Thus, the focus on how data is transformed into meaningful information captures the core difference accurately.