Journal of Knowledge Management Practice, Vol. 8, No.

2, June 2007

Understanding Data, Information, Knowledge And Their Inter-Relationships

Anthony Liew, Walden University

ABSTRACT:

Knowledge, Information, and Data are key words and also fundamental concepts in
knowledge management, intellectual capital, and organizational learning. This paper
includes the reasons for vagueness and confusion commonly associated with those
key terms, proposed definitions of the key terms, and two models of their
transformations and interactions.

Keywords: Knowledge management, intellectual capital, organizational learning,

knowledge, data, information

1. Introduction

Despite many attempts at the definition of ‘Data’, ‘Information’, and ‘Knowledge’,

there still seems to be a lack of a clear and complete picture of what they are and the
relationships between them. Although many definitions are relevant, they are far from
being complete. It is not the intention of this paper to criticize those whom have paved
the way to better understanding of the topic. Rather, the goal is to provide a different
or new perspective in the context of business and knowledge management. Below is a
table of various definitions of Data, Information, and Knowledge from different
authors. The table also includes definitions from Webster’s Collegiate Dictionary.
Most if not all of the definitions shared a common anomaly; they are defined with
each other, i.e. data in terms of information, information is defined in terms of data
&/or knowledge, and knowledge is defined in terms of information. If we are just
describing the inter-relationships, that is all very well. However, with regard to
definitions, this is a logical fallacy i.e. circular definitions or argumentations. (It is in
Philosophy 101 – Critical Thinking and Reasoning).
 Table 1: Definition

Information Knowledge Source

Data
Data is comprised of Information… is much Knowledge resides in the Knowledge Nirvana – Achieving The
the basic, unrefined, more refined data… user…happens only when Competitive Advantage
and generally that has evolved to the human experience and Through Enterprise Content Management
unfiltered point of being useful insight is applied to data and Optimizing Team Collaboration;
information for some form of and information by Juris Kelley, 2002, Xulon Press
analysis
Davenport and Prusak have An Intelligent Organization – Integrating
come up with this Performance, Competence and
definition of knowledge: it Knowledge Management;
is a mixture of organized by Pentti Sydanmaanlakka, 2002,
experiences, values, Capstone Publishing
information and insights
offering a framework to
evaluate new experiences
and information
Information: Knowledge: Actionable The Essential Guide to Knowledge
Processed data… information… often Management – E - Business and CRM
formalized, capture emerges in minds of Applications; by Amrit Tiwana, 2001,
and explicated; can people through their Prentice – Hall
easily be packaged experiences
into reusable form
Information is data put Knowledge… Enabling Knowledge Creation – How to
in context; it is related encompasses the belief s of Unlock the Mystery of Tacit Knowledge
to other pieces of data. groups or individuals, and and Release the Power of Innovation; by
Information is about it is intimately tied to Georg Von Krogh, Ichijo, and Nonaka,
meaning, and it forms action 2000, Oxford University Press
the basis for
knowledge

Information has been Knowledge… is defined as Common Knowledge – How Companies

defined as data that is the meaningful links Thrive by Sharing What They Know; by
“ in formation” – that people make in their minds Nancy M. Dixon,
is, data that has been between information and 2000, Harvard Business School Press
stored, analyzed, and its application in action in
displayed, and is a specific setting
communicated
through spoken
language, graphic
displays, or numeric
tables
Knowledge is a body of Managing Knowledge Workers – New
information, technique, Skills and Attitudes to Unlock the
and experience that Intellectual Capital in Your Organization;
coalesces around a by Frances Horibe, 1999, John Wiley &
particular subject Sons
Data are elements of Information is data Knowledge is information Innovation Strategy for the Knowledge
analysis. with context. with meaning Economy: The Ken Awakening; by Debra
 M. Amidon, 1997, Butterworth-
Heinemann
Data must be Information must be The Art of Being Well Informed – What
organized to become put into context to You Need To Know To Gain The
information become knowledge Winning Edge In Business; by Andrew P.
Garvin, 1996, Avery Publishing Group
Information is a flow Knowledge is created by The Knowledge - Creating Company –
of messages the very flow of How Japanese Companies create the
information, anchored in Dynamics of Innovation,
the beliefs and by Ikujiro Nonaka and Hirotaka Takeuchi,
commitment of its holder.” 1995, Oxford University Press
Data is a set of Information… as Knowledge is a fluid mix Working Knowledge: How Organizations
discrete, objective message… in the of framed experience, Manage What They Know. By Thomas
facts about events… (various) form of values, contextual H. Davenport and Laurence Prusak,
as structured records communication… to information, and expert 2000. Harvard Business School Press.
of transactions have an impact on insights that provides a
judgment and framework for evaluating
behavior and incorporating new
experiences and
information…
Data: 1. factual Information: 1. the Knowledge: 1. Merriam Webster’s Collegiate Dictionary
information used as communication or Cognizance; 2. the fact or 10th ed.
a basis for reception of condition of knowing
reasoning, knowledge or something with familiarity
discussion, or intelligence; 2. gained through experience
calculation; 2. knowledge obtained or association; 3. the range
information output from investigation, of one’s information or
by a sensing device study, or instruction; understanding; 4. the sum
or organ that 3. Facts, Data; 4. of what is known: the body
includes both useful quantitative measure of truth, information, and
and irrelevant or of the content of principles acquired by
redundant information. mankind.
information and
must be processed to
be meaningful; 3.
information in
numerical form that
can be digitally
transmitted or
processed.

For all intents and purposes, we need definitions that are concise, definitive, and
distinct in attributes or characteristics, exhibit probable purpose, and/or offer inter-
relationships. This subject is not an easy one; it involves extensive conceptual
thinking dealing with many abstract concepts and semantics. Nevertheless, a thorough
understanding of this topic is the quintessential foundation of information and
knowledge management.

Personal experience leads me to conclude that ‘definitions’ can never be overstated in

terms of their importance. Good definitions include several essential characteristics:
(1) boundaries (i.e. exclusive, nothing left out); (2) purpose (i.e. what it does), and (3)
attributes or characteristics (i.e. what it is). My proposed definitions of ‘Data’,
‘Information’, and ‘Knowledge’ fall within the parameter of a good definition.
Thereafter, we can look into the inter-relationships between the defined subjects.

2. Definitions

Data are recorded (captured and stored) symbols and signal readings.

 Symbols include words (text and/or verbal), numbers, diagrams, and images
(still &/or video), which are the building blocks of communication.

 Signals include sensor and/or sensory readings of light, sound, smell, taste, and
touch.

As symbols, ‘Data’ is the storage of intrinsic meaning, a mere representation. The

main purpose of data is to record activities or situations, to attempt to capture the true
picture or real event. Therefore, all data are historical, unless used for illustration
purposes, such as forecasting. [Note: However, Rehauser and Kremar (1996, p.6; cited
by Probst et al., 2000) made a distinction between symbol and data with syntax.]

Information is a message that contains relevant meaning, implication, or input for

decision and/or action. Information comes from both current (communication) and
historical (processed data or ‘reconstructed picture’) sources. In essence, the purpose
of information is to aid in making decisions and/or solving problems or realizing an
opportunity.

Knowledge is the (1) cognition or recognition (know-what), (2) capacity to act

(know-how), and (3) understanding (know-why) that resides or is contained within the
mind or in the brain. The purpose of knowledge is to better our lives. In the context of
business, the purpose of knowledge is to create or increase value for the enterprise and
all its stakeholders. In short, the ultimate purpose of knowledge is for value creation.

Given the definitions for data, information, and knowledge, the relationships between
data and information, information and knowledge, why they are most often regarded
as interchangeable and when they are not, the processes and their relevance to our
intended application can be explored. The key to understanding the intricate
relationship between data, information, and knowledge lies at the source of data and
information. The source of both is twofold: (1) activities, and (2) situations. Both
activities and situations generate information (i.e. ‘relevant meaning’ to someone) that
either is captured thus becoming Data, or becomes oblivious (lost).
Examples of activities where information is generated and data can be collected
include business activities like production, sales transactions, or advertising
campaigns. Situations pertain to changes in the environment that may or may not be
related to human activities, such as changes in the climate. Changes in the climate
would affect such human activities as agriculture, or other economic activities such as
cargo shipping. A situation is a context that affects decisions. For example, the
deterioration of a factory building may impact production. In short, activities and
situations generate information that feed into the decision-making process. The
following diagram illustrates the relationships between data and information.

Figure 1: Formation Of Information nd Data

Once they are captured and stored, data can be processed back into information
through compilation and analysis. The picture of past activities and situations can thus
be reconstructed. There are two fundamental aspects of data processing, compilation,
and/or analysis:

 Data to data

 Data to context

For example, ‘Anthony’ represents a person, and ‘555-2345’ represents a phone

number. Both pieces of data may have a relationship, such as ownership, that means
‘555-2345 is Anthony’s phone number’, which in turn implies a message or decision
where there is a likelihood of reaching Anthony via phone call. Further compilation of
names of customers and their contact numbers may lead to information of how many
customers one can reach and possible times needed to complete the task, i.e. 100
customers vs. 10,000 customers. An example of data to context data processing is
‘Anthony’ located in a current phone book vs. ‘Anthony’ located on a tombstone.
Both the same data in different context would yield different meaning, implications or
information that may necessitate a different decision or consequence.

Diagram 2: Relationships Amongst Knowledge, Information, And Data

The key to understanding the relationship between information and knowledge is to
know where the information resides. Recall that information is at its essence a
message that is generated from activities and situations. However, information resides
in storage media (database, print, video tapes, etc.) in the form of data, or in the
human mind as knowledge (in its simplest form of know-what or the higher forms of
know-how and know-why). If this is the case, then the overlap between data and
information vis-à-vis information and knowledge becomes obvious, i.e. they occupy
different space at the same time. This also explains why many perceive data and
information, as well as information and knowledge as interchangeable. “…one man’s
data can be another man’s knowledge, and vice versa, depending on context”
(Stewart, 2002, p.6 footnote). However, they are not interchangeable in terms of their
accepted distinct definitions. So, what is a book: knowledge, information or data? It is
all the above in various context. A book is knowledge from the author’s perspective,
information for the potential reader, and data as well which is contained in a storage
media (called ‘book’).

These distinctions can help us crystallize our understanding in terms of managing

data, information, and knowledge within the business model or organization. The
importance or usefulness of definitions cannot be overstated when it comes to
execution of management activities and business programs that involve millions upon
millions of dollars.

Data management is the capture, storage, structure, compilation, retrieval, and

analysis of records. It is the reconstruction of recent or historical events as inputs for
decision-making and/or problem solving.
Information management includes reconstructing a picture of historical events,
collecting current or recent market intelligence, as well as projecting possible future
events (forecasting and scenario planning), and of course analysis for decision making
and/or problem solving. Thereafter, action can be taken and then reviewed.

Knowledge management, on the other hand, is, in essence, the management of

human capital (tacit knowledge that resides in the human mind) relationship capital
such as customer, supplier, strategic alliance, social capital (tacit and explicit), and
structural capital (explicit knowledge a.k.a. data and information), the source and
stock of knowledge; and the flow of knowledge as in knowledge creation, sharing,
and application to create and/or sustain organizational value and competitive
advantage.

3. Conclusion

Knowledge management is not an isolated concept. Topics such as individual and

organizational learning, creativity and innovation, leadership and teamwork,
community networking, technology, corporate culture, and strategy contribute to the
process of creating, capturing, and applying knowledge for value creation. Knowledge
management is neither a fleeting concept nor a fad. It is just elusive because of its
multi-disciplinary characteristics. In time, as more research and understanding is
applied it will be better understood.

Final words on the definition of data, information, and knowledge may not and should
not come from this document. Nevertheless, this paper has hopefully clarified certain
issues for future applications.

4. References

Amidon, D.M. (1997) Innovation Strategy for the Knowledge Economy: The Ken
Awakening; Butterworth-Heinemann, Newton, MA, USA.

Davenport, T.H. and Prusak, L. (2000) Working Knowledge: How Organizations

Manage What They Know; Harvard Business School Press, Boston, MA, USA.

Dixon, N.M. (2000) Common Knowledge: How Companies Thrive by Sharing What
They Know; Harvard Business School Press, Boston, MA, USA.

Garvin, A.P. (1996) The Art of Being Well Informed – What You Need To Know To
Gain The Winning Edge In Business; Avery Publishing Group, New York, NY, USA.
Horibe, F. (1999) Managing Knowledge Workers – New Skills and Attitudes to
Unlock the Intellectual Capital in Your Organization; John Wiley & Sons, New
York, NY, USA.

Kelley, J. (2002) Knowledge Nirvana: Achieving The Competitive Advantage

Through Enterprise Content Management and Optimizing Team
Collaboration; Xulon Press, Fairfax, VA, USA.

Merriam Webster’s Collegiate Dictionary, Springfield, MA, USA, 10th ed.

Nonaka, I. and Takeuchi, H. (1995) The Knowledge-Creating Company – How

Japanese Companies create the Dynamics of Innovation; Oxford University
Press, New York, NY, USA.

Probst, G., Raub, S., and Romhardt, K. (2000) Managing Knowledge: Building Blocks
for Success; John Wiley & Sons, Chichester, England, UK.

Rehauser, J., and Kremar, H. (1996) Wissensmanagement im Unternehman,

in: Schreyogg, G./Conrad, P. (eds) Managementforshung 6: Wissenmanagement, 1-
140, Berlin/NewYork: de Gruyter.

Stewart, T.A. (2002) The Wealth of Knowledge: Intellectual Capital and the Twenty-
First Century Organization; Nicholas Brealey Publishing, London, UK.

Sydanmaanlakka, P. (2002) An Intelligent Organization – Integrating Performance,

Competence and Knowledge Management; Capstone
Publishing, Knoxville, TN, USA.

Tiwana, A. (2001) The Essential Guide to Knowledge Management – E - Business

and CRM Applications; Prentice – Hall, Upper Saddle River, NJ, USA.

Von Krogh, G., Ichijo, K., and Nonaka, I. (2000) Enabling Knowledge Creation: How
to Unlock the Mystery of Tacit Knowledge and Release the Power of
Innovation; Oxford University Press, New York, NY, USA.

Contact the Author:

Anthony Liew, 53 Nan Kang Road, Section 3, Taipei, Taiwan, R.O.C. 115; Tel: (886)
926-960012; Email: [email protected]