Data – Data arefacts obtained through reading, observation, calculation, measurement, etc. Theamounts and other details on an organization’s invoices, cheques or pay slips, etc.,are referred to as data, for example: Data is obtained automatically, theresult of a routine procedure such as invoicing or measurement processes. Dataare non-random symbols that represent the values of attributes or events.Hence, data are facts, events and transactions stored according to an agreedcode. Information – Information is a defined as data organized andpresented by someone. Information is used to make decisions. Information is aset of data transformed in such a way that it helps to reduce futureuncertainty and, therefore, contributes to the decision-making process.
Information is data transformed in a way that makes sense tothe person who receives it. In other words, it has a real or perceived valuefor that person when they act or takes decisions. Information, moreover, isdata that have been interpreted and understood by the recipient of the message.The relationship between data and information is like that of raw materials andthe finished product.
Knowledge – Knowledge can be defined as an information read,heard or seen, and understood. Knowledge is the awareness of data brought intorelation to form information in a wider sense. Knowledge is supported byexperience and other forms of education and learning to comprehend therelationship of data to information and both their reason and meaning. Knowledge acquisition involves complex cognitive processes,such as perception, communication and reasoning. Discussion:For data to be transformed into information, there must bean awareness of what the person receiving the message will use it for, his/hertraining, position in the organization and familiarity with the language andcalculations used in the message. While all managers need information, they donot all need the same type of information. The kind of information requiredwill depend on a range of factors: their level in the hierarchy, the work theyare carrying out, confidentiality, urgency, etc.
Indeed, the usefulness ofinformation is a debatable point, and what for one person is information, foranother is data. In an organization, for example, when information istransferred from one organizational level to another its meaning may changesignificantly, such that at one hierarchical level it is regarded assignificant information, whereas at another level it is simply data.Information is the recipient’s knowledge and comprehension of data.
Informationreduces uncertainty and affords the recipient something he/she did not knowpreviously.Information is one of many company resources, alongsidecapital, raw materials and labor, since no company is viable withoutinformation. Regarding information as a scarce resource obliges us to considerthe issue of information economics, in other words, how to establish thenecessary relationship between the value of information and its cost.