“Data”, “information” and “knowledge” are three different terms. Understanding what they stand for and how they differ, is the starting point in KM.
Data
Data is a set of discrete, objective facts about events . Data can be viewed as structured records of trans¬actions.
People gather data because it is factual and generates a feeling of scientific accuracy. They think that if enough data is available, objectively correct decisions will automatically follow. But as Davenport and Prusak have pointed out, this is false on two counts. First, too much data can confuse us and make it harder to make sense of a situation. Second, there is no inherent meaning in data. Data as it provides no judgment or interpretation, cannot tell us what to do. Despite these limitations, data is im¬portant to organizations, because it is what gives rise to information
Data management is typically evaluated in terms of cost, speed, and capacity. How much does it cost to store or retrieve data? How soon can we get it into the system or retrieve it? How much is the storage capacity? Qualitative measurements are timeliness, relevance, and clarity . Do we have access to it when we need it? Is it what we need? Can we make sense out of it?
Information
Information is a message meant to change the way the receiver perceives some¬thing and have an impact on his judgment and behavior. Information is data that makes a difference .
We transform data into information by adding value in various ways :
- Contextualizing: Understanding for what purpose the data was gathered
- Categorizing: Knowing the units of analysis or key components of the data
- Calculating: Analyzing the data mathematically or statistically
- Correcting: Removing errors from the data
- Condensing: To make the data available in a more concise, user friendly form
Quantitative measures of information management focus on the degree of connectivity and the number of transactions: How many downloads are taking place daily? How many messages do we send in a given period? Qualitative measures focus on the depth and usefulness of information. Does the message give us some new insight? Does it help make sense of a situation and contribute to decision making or problem solving?
Knowledge
It is important to understand what knowledge is and what it does because too often, organizations focus all their efforts on data/information management. In the process, the unique dimensions of knowledge are completely ignored. For example, an excessive focus on IT effectively converts KM into information management. As we shall see later, the organizations that have the most effective KM processes, synergize information technology and human networks to give a boost to knowledge creation and sharing.
Knowledge is broader, deeper and richer than data or information. Information becomes knowledge, through :
- Comparison: How does information about this situation compare with other situations?
- Consequences: What implications does the information have for deci¬sions and actions?
- Connections: How does this bit of knowledge relate to others?
- Conversation: What do other people think about this information?
Knowledge because it is more actionable is more valuable than data or information. Better knowledge leads to improved productivity or lower cost and facilitates better decisions.
Knowledge develops over time, through experience which provides a historical perspective from which to view and understand new situations and events. Experience helps us to recognize familiar patterns and make connections between what is happening now and what hap¬pened in the past. Experience changes the focus from what should happen into what does happen. Knowledge is much more than a recipe to deal with routine situations. When we become knowledgeable people we see some patterns even in new situations and can respond appropriately. We don't have to start from scratch every time.
There are two kinds of knowledge - Explicit and Tacit. Explicit knowledge can be codified and transmitted formally and systematically through documents, databases, intranet, email, etc. Tacit knowledge is difficult to encode, formalize or articulate. It is personal and context specific. Tacit knowledge is shared and developed by observation and practice, through a process of trial and error.
Though, it may appear that data, information and knowledge lie on a continuum, there are discontinuities that make knowledge fundamentally different from information. The discontinuity between information and knowledge, is caused by how knowledge is created from the newly received information. New insights are typically internalized by establishing links with already existing knowledge, which helps us make sense of received information. Hence, the new knowledge is as much a function of prior knowledge as it is of received inputs. In short, data can be “processed” into information say by using computers, but information cannot be “processed” into knowledge in a similar manner. The human factor plays a critical role in the conversion of information to knowledge.
Knowledge provides us with the ability to handle different situations and to anticipate implications, judge their effects and improvise. Unlike data and information, knowledge can judge new situations in light of what is already known and also judge and refine itself in response to new situations.
Knowledge is like a living system that grows and changes as it interacts with the environment.
By helping us deal with complexity, knowledge provides value. As Davenport & Prusak mention , it is tempting to look for simple answers to complex problems and deal with uncertainties by pretending they don't exist. Knowing more usually leads to better decisions than knowing less, even if the "less" seems clearer and more definite. Certainty and clarity may seem convenient but they often come at the price of ignoring key factors.
MZA
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