knowledge base

What is Data? A Beginner-Friendly Explanation

What is data? Discover the definition of data, its types, and why it's essential in analytics, business, and technology.


Definition of Data

Data is information collected, stored, and processed to generate insights.

It can be in the form of numbers, text, images, or sounds. In data analytics, data serves as the foundation for analysis, decision-making, and artificial intelligence (AI).

Types of Data

Data comes in different formats. Here are the main types:

  1. Structured Data – Organised and stored in a fixed format (e.g., databases, spreadsheets).
  2. Unstructured Data – Information without a predefined structure (e.g., emails, videos, social media posts).
  3. Semi-Structured Data – A mix of structured and unstructured data (e.g., JSON files, XML data).
  4. Quantitative Data – Data expressed in numbers (e.g., sales figures, website traffic).
  5. Qualitative Data – Descriptive data that provides context (e.g., customer feedback, survey responses).

Why is Data Important?

Data drives decision-making in almost every industry. Here’s why it matters:

  • Business Insights – Companies use data to improve products, track trends, and optimize marketing strategies.
  • AI & Machine Learning – Algorithms learn from data to make predictions and automate tasks.
  • Healthcare – Data helps doctors diagnose diseases and recommend treatments.
  • Finance – Banks analyze data to detect fraud and manage investments.

Real-World Example

  • Google uses data to improve search results.
  • Netflix recommends shows based on user behaviour.
  • Amazon optimises its supply chain using data analytics.

Related Articles:

Similar posts

New articles available every week!