Episode 30: What is data?

Embedded IT
Mar 18, 2025
3 min read

Updated: Jan 16

Data sits at the heart of every IT system, business process, and decision, yet it is often misunderstood. This piece offers a down-to-earth explanation of what data actually is, where it comes from, and why understanding it matters for anyone working in technology procurement.

This article sits within our broader Data series, which looks at how data moves from collection through to insight.

Understanding what data is

Data is simply information about something. It can describe almost anything, from how fast a boat is moving to a person’s date of birth. Everyday tools rely on data to function, whether that is a satnav, a business application, or a weather app.

Data appears in many different forms, which can make it difficult to manage. At its core, though, it can be grouped into two main types: structured and unstructured.

Structured and unstructured data

Structured data sits in a clear, organised format. A spreadsheet is the most familiar example. Rows, columns, labels, and consistent layouts make it quick and easy to ask questions, analyse results, and get useful answers.

Unstructured data has no such format. A page from a book, an image, a document stored in SharePoint, or even a webpage all fall into this category. They hold valuable information, but it cannot be interrogated as easily without interpretation or additional processing. Much of the data organisations produce sits in this unstructured space.

As tools evolve, more focus is being placed on turning unstructured data into something that can be analysed, queried, or structured in a meaningful way.

The four main sources of data

There are four key sources of data that organisations typically work with:

Internal data

Business systems, HR platforms, emails, websites, and documents all generate internal data. It is usually more accessible and easier to manage because it sits within the organisation’s own environment.

External data

Examples include GPS signals, weather feeds, credit check information, or data from Companies House. These sources can enrich decision-making but may come with licensing, security, or privacy considerations.

IoT and sensor data

Cameras, sensors, and monitoring devices collect real-time information about equipment, environments, or processes. These Internet of Things sources offer valuable insights but can be harder to connect or integrate into existing systems.

Web and cloud data

The internet provides vast amounts of information, and cloud services offer ready-made interfaces and APIs for pulling in data. As with other external sources, organisations need to understand what they are permitted to use and how.

Understanding these different sources is important, particularly from a procurement point of view, as each type carries its own commercial and operational implications.

The key categories of data tools

Several categories of tools support the full lifecycle of data, from capture through to analysis. These include:

Data collection
Data storage
Data processing
Data analysis
Data governance
Data visualisation
Data integration

These areas form the backbone of modern data management. Strong foundations in these categories help ensure that systems, reporting, and emerging technologies such as artificial intelligence can operate effectively and make reliable decisions.

For organisations looking to improve how they understand, manage, and procure data tools, get in touch.