Data is processed by computers, the resulting information can then be used to make decisions. You need to know the definitions of data and information and the relationship between the two.

This is a list of data items:
42
rabbits
16:00
76 apples 09743245530
£40
seaside

Data items need to be part of a structure, such as a sentence, in order to give them meaning.
For example, take these data items from the previous page:
42
rabbits
16:00
76 apples 09743245530
£40
seaside
When used to form part of a sentence they gain meaning:
There are 42 apples in that box and each one of them has been nibbled by rabbits.
The fare to the seaside is £40 and the journey takes 76 minutes by rail.
My telephone number is 09743245530. Call me at 16:00.
This is information - data put into context.

A structure is needed in order for data to become information.

Input devices can collect data automatically, eg sensors that continually measure a temperature or a fix-mount barcode reader at a till.
In both of these cases the data collected will be read into a database for processing. With a structure in place (the database) the data becomes information.

Spreadsheets are commonly used to turn data into information.

Knowledge is the ability to understand information and to then form judgements, opinions, make predictions and decisions based on that understanding.

Knowledge from information

Example 1
Each year, for the past five years, the apple crop in Somerset has grown by 10%. The same amount of growth is predicted this year so we need to find markets for a further 10% of apples.
In this example data collected each year, for the past five years, has become information and a pattern in the growth of the apple crop has been identified - 10% year on year. This information has been used to predict the same level of growth this year and has highlighted the need for more markets. The prediction and realisation are knowledge, ie the use of information.

Example 2
The car looked like it had flat tyres and it had a pool of petrol underneath it at the back. There was smoke coming from the bonnet. I took the decision not to