What is the primary distinction between internal and external data sources?

The primary distinction between internal and external data sources is that internal data sources originate from within the organization. This means that data collected through internal sources is generated by the organization's operations, such as sales records, employee information, financial reports, and other metrics that are produced in the course of daily business activities.

In contrast, external data sources refer to information gathered outside of the organization, such as market research, industry reports, and competitor analyses. The reliability of these sources can vary and is not inherently more trustworthy than internal data; this recognition highlights why choices related to reliability or the exclusivity of information types are misaligned with the core distinction being assessed. Understanding the origin of data is crucial for effective information management and decision-making within an organization.