Understanding Data

Data is simply information collected and organized for a purpose. It can guide decisions in daily life and business operations. Every decision we make is based on some information. For example, we plan a holiday destination based on weather forecast or past weather conditions for that place. The clothes that we pack for a vacation is based on weather forecast for the destination.

Data is information, and it is useful in what we do every day. In recent times, almost every company collects and uses an abundant amount of data to analyse and infer results, improve customer experience and maximize profits. Every single piece of data is like a component, which may or may not be useful on its own but can help to create useful insights when combined with other data.

Example

Data that companies collect include - customer information, sales figures, website traffic

Businesses can gain insights into consumer behaviour, market trends and business performance by analysing data. Without past data, businesses will not know how well they are doing or what their customers want.

There are two types of data: Qualitative and Quantitative data, which we will cover in more detail in the next section.