Question

Why must the data be converted to information?

Answer 1

Information is a processed, organised data presented in a given context and is useful to humans. Data is an individual unit that contains raw material which does not carry any specific meaning. Information is a group of data that collectively carry a logical meaning.

The main examples of data are weights, prices, costs, numbers of items sold, employee names, product names, addresses, tax codes, registration marks etc. Images, sounds, multimedia and animated data as shown. Information: Information is data that has been converted into a more useful or intelligible form.

Data items are simply “facts” that have been collected in some storable, transferable, or expressible format. However, if the data is going to be useful, it must be transformed into information products that can be interpreted by people into knowledge so that it can be used to make better, fact-based decisions.

The best way to start translating raw data to information is by identifying what information you seek. In management consulting we call that hypothesis driven problem solving.

Data processing therefore refers to the process of transforming raw data into meaningful output i.e. information. Data processing can be done manually using pen and paper. Mechanically using simple devices like typewriters or electronically using modern data processing tools such as computers.

The four main stages of data processing cycle are: Data collection. Data input. Data processing.Processed data is called as INFORMATION OR OUTPUT.

The method goes like this:

I first identify what information I am looking for and then formulate a testable hypothesis about that information. I identify what data I need to prove or disprove my hypothesis. I then build a plan collect and analyze that data to validate my hypothesis. We gain information if my hypothesis proven. We also gain information if my hypothesis is shown to be false.