How Is Data Turned Into Information?

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According to the BBC, data is transformed into information after being imported into a database or spreadsheet. Information is defined as a collection of facts or data, whereas data is defined as information organized for analysis or used to reason.

Data is used to conduct scientific experiments and make critical decisions in business. It is collected manually through spreadsheets and automatically through input devices, such as sensors. After collection, data is stored into a database that transforms it into useful information. The Information is then used to predict trends, facilitate judgement and analyze the accuracy of collected data.

Information derived from data is visualized in the form of charts, graphs or dashboards. The goal of visualizing information is to bring attention to key data points and to simplify the task of understanding the collected data. According to business guru Seth Godin, “data is not useful until it becomes information, and that is because data is hard for human beings to digest.” Businesses typically collect data in order to monitor the progress of business goals and develop insights about customer behavior and trends. As a result, the job of data scientists is to transform complex data into information that encourages precise decision making.