Discuss the differences between data information businesses

Discuss the differences between data, information, businesses intelligence, and knowledge in relation to a business. Include how the component of people fits into this mix.

Solution

Data: It is defined as the raw facts collected by various sources. Data can be collected by using multiple point of customer contacts. Data plays an important role in forming a base for good analysis. Managers, top management need accurate and complete data in order to understand and analyze the data.

Information: It is defined as the processed form of data. Data is processed into meaningful facts and figures which can be termed as information. Information plays a very important role in taking any strategic decisions in the company. A good information can provide competitive advantage to the company over its peers.

Business Intelligence: It is defined as the actionable intelligence for the business to take action. Business intelligence is generated using various tools and software, mining through available data and information collected by the organization.

Knowledge: It is the wisdom acquired from experience, learning which can be used for future reference also by the organization and individuals.

People play an important role in all the stages from collection of data, processing of raw data to information, finding right business intelligence tools and retaining the knowledge acquired for future references.