» What is the difference between data, information, and business intelligence?

Data

You have hundreds of lines of data in your company. Most of that data describes your customers, employees, and profitability. From salaries to customer’s ZIP code, this data may range from 100 to 100 million pieces of data. But a ZIP code by itself is just a 5-digit number. Even with a customer’s name, it is almost meaningless.


Information


Information is data that has been converted into a meaningful and useful context. For example, say your company has 500 customers. Let us also say that 50 percent of these customers are from the ZIP code 33813 while the rest are from random, unique ZIP codes. This ZIP code would be considered the most profitable ZIP code. Under further investigation you realize that your particular industry is either lacking in presence or in great demand in the ZIP code 33813.


Business Intelligence


While this information is certainly telling, business intelligence is what would actually take this useful piece of information and use it for decision-making efforts. For example, you would decide to market in the area codes that have the highest demand.


Business intelligence allows you to gain a competitive edge over your competition. Using ZIP codes to your advantage will enhance many departments in your business such as sales, marketing, and logistics.


With our ZIP code and statistical databases, we provide you with valuable, accurate data that allows you to extrapolate valuable information and business intelligence. As you can see from the example above, ZIP codes help your business discover trends in your sales by ZIP code. You are also able to use this information to aid your company in direct marketing methods.


Blog: Data, Information, and Business Intel


In the world of business, there are billions of pieces of data. From salaries to ZIP codes, companies regularly sift through data to help describe information about their market and customers.


Data by itself does not create much excitement for a company. A ZIP code by itself provides little to no information.


Through data mining, companies can create valuable information that helps them discover ways to make their business more profitable. Taking information and converting it into action that helps create profit is called business intelligence.


With ZIP code data, businesses can learn a wide variety about their market. One may discover that 50 percent of their business is found in a particular ZIP code, or even a cluster of ZIP codes. This information allows them to make intelligent decisions such as moving locations to that ZIP code or creating a marketing campaign directed to that particular demographic.


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