Use and Misuse of terms in KM

The most featured terms in KM are Knowledge, Information and Data. These terms all have to do with the cycle or science of information and are often misinterpreted.

Data is “Representation of facts, concepts, or instructions in a formalized manner suitable for communication, interpretation, or processing by humans or by automatic means. Any representations such as characters or analog quantities to which meaning is or MIGHT be assigned” (Source: : Institute for Telecom Sciences)

Information is “...Data that have been processed into a format that is understandable by its intended audience” (Source: Wikipedia)

“...knowledge is "information in action" or "information transformed into the capability for effective action." Taking action and building experience turns information into knowledge. (Source: R.G. Smith)


Another term which may also relate to KM is Wisdom and this is defined by Wikipedia thus: “Wisdom is knowledge, understanding, experience, discretion, and intuitive understanding, along with a capacity to apply these qualities well towards finding solutions to problems”

Example

For better understanding, let’s apply these terms in an Organisation. In a bank for instance, the batch print-out at the end of each day which includes; transaction codes, posting tellers, account numbers, amounts posted etc, will be regarded ad DATA. At this point, they are just facts and figures; however, there is the ability to assign meaning to it.

When this data is extracted by a team leader for all transactions on accounts managed by him/her, it becomes INFORMATION. This is because it is now understandable by the recipient (the team members)

An analysis of this information may indicate that deposits reduced drastically from the previous day. KNOWLEDGE is when the team leader takes a position or an action based on his/her analysis of the information. He/She can decide there is a need to increase or reduce withdrawals and deposits.

Other terms in Knowledge Management

Explicit Knowledge is knowledge that can be transferred easily because it can be captured in the form of books, reports etc. There is no need for a face to face interaction. E.g. a Code of Practice within a bank. It contains guidelines and interpretations.

Tacit Knowledge cannot be transferred easily, this is because it is in people’s heads. It can’t then be measured. It is gained by experience. E.g. An experienced sales officer knows when to close a deal based on his knowledge of clients reactions.
(Source: R.G. Smith)