---
title: What is the difference between information and insights?
description: Data are an amazing source of value for a company. But it is useless if we don't convert it into information from which we extract insights.
---

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# [What is the difference between information and insights?](https://blog.bismart.com/en/what-is-the-difference-between-information-and-insights)

 Written by [Maria Gorini](https://blog.bismart.com/en/author/maria-gorini) | Sep 14, 2020 10:00:00 PM

It is undeniable that data has meant a revolution for the business world. Since companies have realized the **value found in their databases**, the way they collect and treat it has changed a lot, both in terms of quantity and quality.

However, having data does not provide [business intelligence](https://blog.bismart.com/en/top-5-best-business-intelligence-bi-software-and-tools), but there must be a strategy that allows us to detect the information needs of the company, to properly analyze the **data** and to be able to communicate the **information** they give us and to interpret the insights generated from them so that they become actions.

Today, most companies opt for [self-service BI strategies](https://blog.bismart.com/en/self-service-bi-with-power-bi) that allow them to tailor BI tools to their specific needs and save resources through scalability. 

### Download the checklist to identify real insights

If you want to go beyond the theoretical definition, we have prepared a [professional checklist to identify real insights ](https://landing.bismart.com/en/actionable-insights-checklist)based on methodologies from Gartner and Forrester. It will help you differentiate data from insights and detect truly actionable findings in your marketing, analysis, or research projects.

 

Let's review the definitions of **data**, **information** and **insight**:

## Definition of data

Data is the raw facts (numbers, words, images...) that are collected **according to agreed standards**. These standards are paramount, as they allow for **uniform data** that can be processed **more efficiently**. One of the most important steps in a data analysis strategy is the [**definition** of the standards](https://landing.bismart.com/en/indicators_dimensions_definition_tool) to be applied. This means that when we start an analysis project, we must **evaluate the client's data structure and normalize the data** to ensure that we are measuring the facts correctly.

## Definition of information

**Information** is the set of data points that we use to understand an aspect of what is being measured. In other words, it is data that has been processed so that it can be **displayed in a much more understandable format**, such as **data visualizations**, **reports** or **dashboards**. However, information alone does not change the world, but we must **interpret** **it** to generate **strategic actions** for improvement. For this there are **insights**.

## Definition of insight

**Insights** are the **result of the analysis of data and information** that help to understand **what is happening** in a **specific context** and to generate these strategic actions. Insights are the key to understanding our **target audience**, **creating better products** and **knowing and discovering markets**. Good insight is born from analysis and research, but it depends on the **right objectives** and **good data collection methods**.

The following is an example of our [Customer ABC](https://landing.bismart.com/en/abc-client-analysis) solution where you can see how to move from data to valuable insights:

In this example, the data are presented in a way that is **easy to understand**, allows knowledge to be gained and decisions to be made.

For this reason, when we talk about [**data-driven**](https://blog.bismart.com/en/data-driven-decisions-making) industries or strategies, what we are saying is that data is the fuel that allows these changes or strategic actions to be reached. Knowing these definitions reminds us of the importance of **dealing with data efficiently**: not by having data will we get intelligence, but we must know **which kind we need, how we measure it, what it shows us and how we interpret it**.

Before you go...

Don't forget to [download our practical checklist ](https://landing.bismart.com/en/actionable-insights-checklist)so you can evaluate whether your analyses meet the standards to be considered insights or whether you should optimize your analytical base to make better business decisions.

[View full post](https://blog.bismart.com/en/what-is-the-difference-between-information-and-insights)

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