Data are raw facts and figures that have no meaning on their own. To become information, data must be processed and given context. There are three key steps:
1. Data is captured as raw numbers, text, etc. with no inherent meaning.
2. Data is then processed by organizing, analyzing, and summarizing it to add value. Context is also applied to relate the data to real-world situations.
3. Once processed and given context, the data becomes meaningful information that can be understood and used to make decisions or take actions. Information is data that has been transformed to have purpose and significance.