A company collects data on customer purchase habits through their online store. Which of the following BEST explains how this data can be used to create information that is valuable to the business?
Encrypting the data to prevent unauthorized access
Performing regular server maintenance to ensure data integrity
Analyzing the data to understand buying trends and inform inventory management
Storing the data in a secure database for future use
Analyzing the collected purchase data allows the company to identify buying patterns and demand trends, which can guide inventory planning and targeted marketing. This analytical process converts raw data into actionable information. Encrypting the data focuses on safeguarding confidentiality, storing the data merely preserves it for later use, and routine server maintenance ensures system reliability-none of these activities derive new meaning or insights from the data.
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