The knowledge management literature provides many definitions of knowledge, most of which build the concept from data, to information, to knowledge. Some of the literature even takes this one step further and expands knowledge to understanding and wisdom (Ackoff 1989; Kannegieter 2001; Stewart 1999); however there is little agreement for a precise definition of knowledge (Biggam 2001, p. 2; Håkanson 2001, p. 3). Unfortunately data and information are often used interchangeably, and information and knowledge are used as synonyms.

Data is typically thought of as being ‘a set of discrete, objective facts existing in symbolic form that have not been interpreted’ (Davenport & Prusak 1998, pp. 2-3), but which can be ‘shaped and formed to create information’ (Laudon & Laudon 1998, p. 16. The symbolic form may be text, images, or pre-processed code. Data is usually organised into structured records, however it lacks context. The declaration ‘Iron melts at 1,538 degrees Celsius.’ is a data statement because it has no context. When data is enriched by adding context it may become information.

Information is ‘data that have been shaped by humans into a meaningful and useful form’ (Laudon & Laudon 1998, p. 16). It is data with a message, and therefore has a receiver and sender. It is data with relevance and purpose that is useful for a particular task (Liebowitz & Beckman 1998), and is meant to enlighten the receiver and shape their outlooks or insights (Davenport & Prusak 1998). Information results in an action that allows the data to be applied to a specific set of circumstances and to be employed effectively, therefore, data only becomes information after the receiver has interpreted it. Furthermore information is descriptive. The statement ‘Newcastle steel-mill’s smelter temperature has been set at 2,300 degrees Celsius.’ conveys information because it has been enriched by context. The enrichment from data to information is a ‘know what and how’ procedure that results in an understanding of relationships and patterns. However, information by itself remains descriptive and without additional data or information it cannot be used to predict an event or outcome.

Building on the foregoing discussion we might conclude that knowledge is processed information in context and in action. It is descriptive, predictive and adaptive and can be applied to many situations (Kock, McQueen & Corner 1997, p. 70). Information only becomes knowledge after it has been examined and compared to other information or data, and is then applied to describe, predict or adapt to a situation. A ‘know how and why’ enrichment occurs with the addition of further context, experience and understanding, to result in an understanding of principles. The statement ‘If the steel-mill’s smelter temperature is set at 2,000 degrees Celsius, then all the iron in the smelter will melt in 30 minutes.’ might represent knowledge, because it is both predictive and descriptive, has context, and demonstrates understanding. But how and in what context is the statement actually useful?

However knowledge remains one of those content-free management words that has many meanings. Indeed the Macquarie Dictionary provides eight definitions of knowledge. The first says knowledge is ‘acquaintance with facts, truths, or principles, from study or investigation.’ Another says knowledge is the ‘perception of fact and truth and being cognisant or aware of fact or circumstance.’ The last definition says knowledge is the ‘body of truths or facts accumulated by human beings in the course of time’ (Eurofield Information Systems 2002). The statement above seems to fit all these definitions, so perhaps it is representative of knowledge?

References

Ackoff, R 1989, 'From data to wisdom', Journal of Applied Systems Analysis, vol. 16, pp. 3-9.

Biggam, J 2001, 'Defining knowledge: an epistemological foundation for knowledge management', paper presented to 34th Hawaii International Conference on System Sciences, Hawaii.

Davenport, TH & Prusak, L 1998, Working knowledge: how organisations manage what they know, Harvard Business School Press, Boston.

Eurofield Information Systems 2002, The Megalex Macquarie dictionary, 2.40 edn, The Megalex Macquarie Dictionary, Chatswood, Australia, Software.

Håkanson, L 2001, 'Tacit knowledge, articulation and competitive advantage', paper presented to LINK Conference, Copenhagen.

Kannegieter, T 2001, Knowledge management: a framework for succeeding in the knowledge era, Standards Australia International Limited, Sydney.

Kock, NF, McQueen, RJ & Corner, JL 1997, 'The nature of data, information and knowledge exchanges in business processes: implications for process improvement and organizational learning', The Learning Organization, vol. 4, no. 2, pp. 70-80.

Laudon, K & Laudon, J 1998, Information systems and the internet, 4th edn, Dryden Press, Orlando.

Liebowitz , J & Beckman, T 1998, Knowledge Organizations: What Every Manager Should Know, St. Lucie Press.

Stewart, T 1999, Intellectual capital: the new wealth of organisations, Nicholas Brealey, London.

Tiwana, A 2002, The knowledge management tool kit: orchestrating IT, strategy, and knowledge platforms, Prentice Hall, Upper Saddle River.