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DataAnalytics4 min read

The difference between data and information

You're probably drowning in data and starved for information. Knowing the difference is the first step to reporting that matters.

Data is raw: rows, events, numbers. Information is data with enough context to mean something. Most organizations have an abundance of the first and a shortage of the second, and they confuse having data for being informed.

Context is the difference

'Revenue was 412,000' is data. 'Revenue was 412,000, up 9% on last month and ahead of plan' is information — it tells you whether to worry. The number didn't change; the context did all the work.

Report information, store data

Keep the raw data — it's the foundation. But what people consume should be information: comparisons, trends, and the answer to 'is this good?' built in. A report that makes someone do the interpreting themselves usually doesn't get used.

More data rarely makes a team smarter. More context always does.

Most operations are behind where they could be.

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