Learning Objectives

By the end of this chapter, you will be able to:

  • Define the different levels of the data hierarchy (character, field, record, file, database).
  • Differentiate between data, information, and knowledge.

The Data Hierarchy

Data in a computer system is organized in a logical hierarchy, from the smallest element to the largest.

  1. Character: The most basic logical element. It consists of a single letter, number, or symbol.

  2. Field: A group of related characters that represents a single attribute or characteristic of an entity.
    • Example: A customer’s name or a product’s price.
  3. Record: A collection of related fields that describe a single entity.
    • Example: A customer record would contain fields for their name, address, and phone number.
  4. File (or Table): A collection of related records.
    • Example: A customer file would contain the records for all of the company’s customers.
  5. Database: A collection of related files (or tables) that are integrated and managed together.

Data, Information, and Knowledge

It is important to understand the distinction between these three terms:

  • Data: Raw, unorganized facts and figures. By itself, data is relatively meaningless.
    • Example: The number 120.
  • Information: Data that has been processed, organized, and structured within a context to make it meaningful and useful.
    • Example: "120 units sold today".
  • Knowledge: Information that has been further refined and analyzed to identify patterns, trends, and insights, which can then be used for decision-making.
    • Example: "Sales of 120 units today is a 20% increase over the daily average, likely due to our new marketing campaign."

Summary

Data is organized in a hierarchy, from individual characters up to fields, records, files, and finally, a complete database. The ultimate goal of a database is to manage raw data so that it can be processed into useful information and, eventually, into actionable knowledge that can guide business decisions.

Key Takeaways

  • The data hierarchy is: Character -> Field -> Record -> File -> Database.
  • Data is raw facts, information is processed data, and knowledge is actionable insight from information.

Discussion Questions

  1. Using the data hierarchy, describe the structure of your contacts list on your phone.
  2. Provide your own example of the difference between data, information, and knowledge.
  3. Why is raw data not very useful to a business manager?