What is the difference between Data, Information and Knowledge?

4. Introduction

The word Data, Information, Knowledge and Wisdom are very often seen as keywords in Knowledge Management. These keywords are interchangeable within a given framework or scenario.


4.1 Definitions for Data, Information and Knowledge

According to Ackoff’s (1989), Data is defined as raw and unprocessed information. Data has got no significance beyond its existence. Data is represented or exist in any form and does not have meaning by itself. Whereas, Information is defined as data that has been given meaning on conjugating relational. Thus, data is becoming meaningful and useful to an extent. Knowledge is defined as appropriate collection of information. The main objective of Knowledge is usability to the given context. Hence, Knowledge described as a deterministic process. Wisdom is defined as an extrapolative and non-deterministic, non-probabilistic process. It calls upon all the previous levels of consciousness, and specifically upon special types of human programming (moral, ethical codes, etc.).Wisdom is therefore, the process by which we also discern, or judge, between right and wrong, good and bad.

According to Dr. Quentin L. Burrell Cited in Zins C (2003-05), Data is defined as the basic individual items of numeric or other information, garnered through observation. Data exists without a context and is basically are devoid of information. Information is defined as data that is conveyed, possibly amenable to analysis and interpretation through a specific context. Knowledge is the general understanding and awareness garnered from accumulated information. Knowledge is gained by experience, enabling new contexts to be envisaged.





4.3 ANALYSIS: TRANSFORMATION OF DATA TO WISDOM

Transformation of data to wisdom can be precisely explained with help of diagram mentioned below. As we scale the levels of data maturity, data is transformed to information, knowledge and wisdom. We add more semantics frameworks such as Understanding (Relations, Patterns and Principles) at every level to add value to raw data and make it more useful.


Data is at abstract level initially. Therefore, does not provide information. Rather, information in general terms is processed data attached in context to relations. Information can be further described as data extracted, filtered and formatted to provide some meaning. Knowledge is a subset of information. This subset that has been processed based on understanding patterns. These understanding patterns referred to learning process. Therefore, Knowledge is information that has been subjected to, and passed tests of validation. Wisdom is the last component of data maturity. It is the application of knowledge expressed in principles to arrive at prudent, sagacious decisions about conflicting situations.


4.4 REFLECTION OF PRACTICE TO DEMONSTRATE TRANSFORMATION OF DATA TO KNOWLEDGE AND WISDOM

This example uses a Credit Card Re-Payment to show how data, information, knowledge, and wisdom relate to purchase, interest rate, and days for repayment without interest.

Data: The numbers 45 or 18%, completely out of context, are just pieces of data. Days, and Interest rate, out of context, are not much more than data as each has multiple meanings which are context dependent.

Information: I have considered a Credit Card Re-Payment as the basis for context and then days & interest rate become meaningful in that context with specific interpretations.

• No Interest is charged for the initial 45 days of goods purchased
• Interest rate, 18%, from then onwards till the complete repayment is made.

Knowledge: If I purchase a product using credit card, I’m given 45 days to make a re-payment without 18% interest being charged. But, if I fail to repay the amount within the given 45 days, I’m liable to pay an interest of 18% p.a till the repayment is done. This represents knowledge, which, when I understand it, allows me to understand how the information is transformed into knowledge over time. If use the credit card and make the repayment within 45 days of purchase will earn me interest free purchases.

Wisdom: To transform knowledge into wisdom is tricky. To gain wisdom, person using the credit card should be fully aware of the billing patterns adapted by the Credit Card Companies or Banks. Having an adequate knowledge and putting them into practice on continues basis would lead to wisdom.

I personally experienced this situation paying my credit card purchases. At the time of financial crisis mostly at the end of month, I used my 2nd Credit Card to repay for the goods purchased using my 1st credit card. I have practically avoided paying 18% interest to the credit card company’s couple of times and even maintained a very good credit history.


4.5 REFLECTIONS FROM GROUP LEARNING

The interactions among group members enabled me to differentiate the components like Data, Information, Knowledge and Wisdom.

The basic understanding boosted on referring to published articles by Knowledge Gurus and discussing with other colleagues. Based on the above facts here are my learning outcomes are

• Data – Row format
• Information – Proceeded data with a context
• Knowledge – Gained out of experience
• Wisdom – Gained on practical implementation of Knowledge

According to Shaikh S (2008) and Bello M (2008) Data, Information and Knowledge are different aspect of KM where they depend upon how best an individual can understand. For instance, a Data can be Information for an individual and for others it can be Knowledge.

This clearly shows the analysing capability of a person. Therefore Data, Information and Knowledge are interchangeable in view of individual perspectives. Shaikh S (2008) and Bello M (2008) highlighted data to describe it as interchangeable.


4.6 REFERENCES

Ackoff, R. L., "From Data to Wisdom", Journal of Applies Systems Analysis. Retrieved on February 9, 2008, from http://www.emeraldinsight.com

B, Gene. C, Durval and M, Anthony 2004, Transformation Path of Data to Wisdom [Image] Retrieved on February 10, 2008, from http://www.systems-thinking.org/dikw/dikw.html

Zins, C. (2006). Redefining information science: From information science to knowledge science. Journal of Documentation. Retrieved on February 11, 2008 from http://www.success.co.il/is/dik.html

Shaikh, Samir (2008), Blog: Samir Shaikh- Knowledge Management. Retrieved March 8, 2008 from http://m00188617.blogspot.com/

Bello, Munir (2008), Blog: Knowledge Management Strategies by Munir Bello. Retrieved on March 7, 2008 from http://mubell.blogspot.com