Data vs. Information

We live in the era of sub-second information. Twitter, Facebook, smart phone applications and other tools allow us to follow the changing world around us at real time and we have got accustomed to that. It is not surprising, therefore, that we expect the same in the workplace. We want the facts to find us quickly, and they better be accurate.


But what does it take for this to happen? How can we guarantee that the facts are correct and that they are interpreted accurately by all people?

To answer these questions, we have to first define the two halves of the equation: Data and Information. These words tend to be used as synonyms a lot of times, but they are in fact two different ends of the decision-making assembly line. Think about the process of making a movie: the screenwriters put together a story with meaning and action that will resonate with the audience. The story needs to be organized in a meaningful way and it needs to move at the correct pace or the audience could be lost. Once the story is written, the actors are carefully selected and placed in the roles that best fit their characteristics. The ability of the actors is crucial for the outcome of the movie, because without good acting, the best written story would turn into a hard to understand, mediocre movie. Both writing and acting are very important in the life-cycle of a movie. The outcome as a whole is only as good as the lesser of the two parts.

The same is true when dealing with data and information. Every business has a certain amount of data it wants to analyze. The data can be entered and stored in a lot of different ways. Just like in a screenplay, data needs to be entered and arranged in a relevant way. Inefficiencies in the way data is organized can lead to increased cost in the form of data-entry downtime, hardware capacity and much more. Once the data is entered and organized, it needs to be extracted and presented. The way in which the data is presented and explained is what we call information. For this information to be useful, it needs to be arranged in a way that does not allow for misinterpretation by the consumer. It also needs to be delivered at the right amount. A five hour movie may put most folks in the audience to sleep. In the business world, information is delivered via reports, charts, tables, etc. and it needs to be created efficiently and without ambiguity, so correct decisions are taken at the correct times.

Like writing and acting, data and information are two distinct actions that require synchronization and cooperation. Good data delivered badly is just as useful(less) as good actors in a bad story.

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