Data fragmentation refers to the process where data is broken into smaller pieces and stored in different locations. This can happen in various systems, such as databases or file storage, making it harder to access and manage the information efficiently. Fragmentation can lead to slower performance and increased complexity when retrieving data. There are two main types of data fragmentation: horizontal and vertical. Horizontal fragmentation involves dividing a dataset into subsets based on rows, while vertical fragmentation splits data based on columns. Understanding these types helps organizations optimize their data storage and retrieval processes, improving overall system performance.