Data and information are closely related and are often used interchangeably. Information is
processed, organized or summarised data.
It may be defined as collection of related data that when put together, communicate meaningful
and useful message to a recipient who uses it, to make decision or to interpret the data to get the
Data are processed to create information, which is meaningful to the recipient.
For example, from the salesperson's view, we might want to know the current balance of a
customer M/s Waterhouse Ltd. or perhaps we might ask for the average current balance of all the
customers in India. The answers to such questions are information.
Thus, information involves the communication and reception of knowledge or intelligence. It
reduces uncertainty reveals additional alternatives or helps in eliminating irrelevant or poor ones
influences individuals and simulates them into action.