Distinguish data and information and explain characteristics of information.

Data is collection of facts and figures. It consists of text, number, images or combination of any of these.
Information is the processed data. It is the end result of the data collected. Information is the knowledge derived from data.

Data Information
It is stored data It is a presented fact.
It is inactive. It is inactive.
It is technology based It is business based
It is gathered from various sources It is generated by processing data.
It is unprocessed. It is processed.
It is crude form It is refined form
Not useful for decision making Very useful for decision making

Characteristics of Information:

  1. Accuracy: information must be free from error. Incorrect information leads to wrong conclusions the accuracy of the information required varies from context to context.
  2. Timeliness: Information should be available at right time, right place, to the right person. If information is not available at the right time for decision making, the whole purpose gets defeated.
  3. Relevance: The information generated should be relevant to the problem at hand. Otherwise it cannot be used for decision making.
  4. Completeness: The information which is available for decision making must be complete. If the information available is not complete, the management cannot make proper decisions.
  5. Accessability: The information should be accessable to the manager. Due to advancement in technology the Accessability has become much easier. There must be proper balance between Accessability and security of information.
  6. Consistency: The information should be available to the manager consistently.
  7. Subjectivity: The value and usefulness of information is highly subjective. Information which is very important for one person may be junk to the other.
  8. Reduce uncertainty: The information should reduce element of uncertainty.
  9. Cost: Cost is the limiting factor in obtaining information. The value of the information should be greater than the amount of money spent in obtaining it.