A system comprising a processor (202), a data acquisition module (108), a data processing module (110), and a data diagnosis and prognosis module (112) coupled to the processor (202) is disclosed. Initially, the data acquisition module (108) acquires input data (218) from a plurality of sensors (208). The input data indicates condition status of a bearing (104) used in a rotary machine (102). The data processing module (110) computes bearing data (220) based on the input data (218) and pre-defined rules. The computed bearing data (220) may be used to determine change in the condition of the bearing. The data diagnosis and prognosis module (112) can use the computed change in the condition of the bearing for diagnosis and prognosis of the bearing (104).