Difference between "Data" and "Information"

(Malay)

In day to day conversation, we sometimes used the terms "data" and "information" interchangeably as though there is no difference between the two words. From the perspective of Computer System, there is actually a difference between "data" and "Information".

Data is defined as facts about a something.

For example:
a. Cost of a pair of shoes is RM5,
b. Selling price for a pair of shoes is RM10,
c. Number of pairs of shoes in stock is 3.

All of the above statement refers to the fact that may exist in certain scenarios.

Information is defined as 1) the data have been processed and a 2) something useful in decision making.

For example in the scenario above, the important decisions that may be associated with this fact is "Is it profitable to sell shoes?"

To say "Yes" or "No", we need to process the data (a, b, and c) to produce the desired answer. In business studies, we know that the formula for SALES RETURN= QUANTITY x (PRICE - COST). If the result is positive, it means "profit". Instead, it means "lost".

We will process the data as follows:
Return on Sales = 3 x (10-5)
= 15

The result 15 is positive, therefore the transaction is profitable and the answer "yes".

In the above example, the number 15 is considered as "information" because it helps us to answer the question "Is it profitable to sell shoes?".