We often find people mixing with these concepts; Data, Information, and Knowledge. So what should we well have known that Data refers to Facts, a description of the World. Information refers to Captured Data and Knowledge. Knowledge refers to Our personal map of the World.
Data is unprocessed facts and figures without any added interpretation or analysis. Data can be something simple and seemingly random and useless until it is organized. In many ways, data can be thought of as a description of the World. We can perceive this data with our senses, and then the brain can process this. We use data as long as we’ve existed to form knowledge of the world.
Information is basically the data plus the meaning of what the data was collected for. It cannot be generated without the help of data. The information allows us to expand our knowledge beyond the range of our senses. We can capture data in information, then move it about so that other people can access it at different times.
Simply, Knowledge is what we know. The matter like as the map of the World we build inside our brains. Like a physical map, it helps us know where things are. You can’t currently store knowledge in anything other than a brain, because a brain connects it all together. Everything is interconnected in the brain.
Converting data into information
Data becomes information when it is applied to some purpose and adds value for the recipient. For example, a set of raw sales figures is data. After processing this data, it becomes information. if you are to have the information you need for control and performance improvement, you need to:
– collect data on the indicators that really do affect performance
– collect data reliably and regularly
– be able to convert data into the information you need.
Converting information to knowledge
Ultimately the tremendous amount of information that is generated is only useful if it can be applied to create knowledge within the organization. Building and managing knowledge are one of the greatest challenges that face organizations in the twenty-first century. We hear a lot about the knowledge economy and for many organizations, it is their knowledge that defines their competitive advantage.
In Brief, Data is the raw material that is to be processed for information, But the data that can be made useful is known as an information, Knowledge is a combination of information, experience, and insight.