Data flow refers to the movement of data within a system, illustrating how information is transferred from one point to another. It can occur between various components, such as databases, applications, and users. Understanding data flow is essential for optimizing processes and ensuring efficient data management. In a typical data flow, data is collected, processed, and stored before being analyzed or utilized. This process often involves different stages, including data input, processing, output, and feedback. Tools like data flow diagrams help visualize these stages, making it easier to identify bottlenecks and improve overall system performance.