Data vs. Information vs. Knowledge

                For reference and analysis, data is facts and statistics that have been collected.  Data may be less useful and less contextual than information.  Information is often the result of analysis, correlation, and enrichment of data (Shen, 2020).  From a computational point of view, data is symbols, characters, numbers, attributes, or values (Computer Hope, 2021) that a computer processes with its CPU and stores on the computer’s disk in the form of binary code, 0’s and 1’s (Data Definition, 2006).  In other words, data is raw initial values that can be used to draw conclusions and form more valuable information (Shen, 2020).  Data can be quantitative, qualitative, nominal, ordinal, discrete, and continuous (TechTarget, n.d.).

                Information is often referred to as data.  Data may be information, but only if that data is meaningful to the receiver.  Information has meaning to the person that is using it.  After data is processed into something useful, it becomes information (TechTarget, n.d.).  information is organized, but data is raw and unorganized (Hill, 2021).

                Knowledge occurs when information is added to experience in a way that is useful.  Knowledge leads to understanding, which means that it is really consciousness added to information, adding intelligence (whether human or artificial) to the information (Taylor, 2022).  The Britannica Dictionary defines knowledge as “information, understanding, or skill that you get from experience or education” and “awareness of something” (Knowledge Definition & Meaning, n.d.)

                Companies, especially recently, have determined that collecting massive amounts of consumer data gives them a competitive advantage in the market, and help build “competitive defenses.”  Mining that data and converting that data into actionable information is the challenge that keeps many companies from leveraging their data (Hagiu & Wright, 2019).  Information then gives companies a competitive advantage as it guides decisions, reduces reaction time for change, makes the business more efficient, gives insight, and can be used for predictions and forecasting.  Those insights and predictions, efficiencies, and informed decisions can give an organization a competitive advantage over its competitors.  Michael Porter, the Harvard scholar that developed Porter’s 5 Forces wrote in the July 1985 issue of the Harvard Business Review said that computer systems are creating more data and information than ever before, and that technology is now used for analysis of that data.  Porter says that information technology is useful for creating linkages and interrelationships within data inside the company and between businesses (Porter & Millar, 2014).  The knowledge and awareness of these informative insights is the competitive advantage that is gained by analyzing data and information.

                In decision-making, data management solutions help managers find relevant information, search, correlate, and analyze data in order to forecast or make insightful decisions.  Data management solutions give consistent delivery of data and help business improve their outcomes (Data Management Software & Solutions, n.d.).

                Knowledge management systems (KMS) are IT systems that store and retrieve knowledge.  They are often indexed and highly searchable systems.  They can store data in structured databases or as unstructured documents.  They can exist in Sharepoint, Hubspot, Wikis, CRMs, and many other solutions.  They usually contain an FAQ, a forum/community, how-to articles, tutorials, education programs, certificates, case studies, and webinars.  Customer-facing knowledge management systems are great for support sites, improving customer experience to keep them coming back.  Internal knowledge management systems are used by the operations team, support staff, customer service teams, etc. (HubSpot, n.d.).  Monday.com indicates that a knowledge management system is the single source of truth for external and internal parties to store and deliver information efficiently (Monday.com, 2022).

References:

Computer Hope. (2021, November 6). Data. Computer Hope. Retrieved from https://www.computerhope.com/jargon/d/data.htm

Data Definition. (2006). Retrieved from https://techterms.com/definition/data

Data Management Software & Solutions | IBM. (n.d.). Retrieved from https://www.ibm.com/analytics/data-management

Hagiu, A. & Wright. J. (2019, December 17). When Data Creates Competitive Advantage. Harvard Business Review. Retrieved from https://hbr.org/2020/01/when-data-creates-competitive-advantage

Hill, J. (2021, June 15). Data vs Information: What’s the Difference?  Retrieved from https://bloomfire.com/blog/data-vs-information/

HubSpot. (n.d.). Knowledge Management Systems: The Ultimate Guide. Retrieved from https://www.hubspot.com/knowledge-management-systems

Knowledge Definition & Meaning | Britannica Dictionary. (n.d). Retrieved from https://www.britannica.com/dictionary/knowledge

Monday.com. (2022, August 18). Knowledge management systems: how to choose the right one. Monday. Retrieved from https://monday.com/blog/project-management/knowledge-management-system

Porter, M. & Millar, V. (2014, August 01). How Information Gives You Competitive Advantage. Harvard Business Review. Retrieved from https://hbr.org/1985/07/how-information-gives-you-competitive-advantage

Shen, S. (2020, November 29). What is Data? Towards Data Science. Retrieved from https://towardsdatascience.com/what-is-data-ade94b37204a

Taylor, D. (2022, September 3). Information vs. Knowledge: Key Differences. Retrieved from https://www.guru99.com/information-vs-knowledge-difference.html

TechTarget. (n.d.). Information. Retrieved from https://www.techtarget.com/searchdatamanagement/definition/information

Thakur, D. (2013, November 15). How to Use Information for Competitive Advantage – Computer Notes. Retrieved from https://ecomputernotes.com/mis/information-and-system-concepts/information-for-competitive-advantage

Published by Art Ocain

I am a DevOps advocate, not because I am a developer (I’m not), but because of the cultural shift it represents and the agility it gains. I am also a fan of the theory of constraints and applying constraint management to all areas of business: sales, finance, planning, billing, and all areas of operations. My speaking: I have done a lot of public speaking in my various roles over the years, including presentations at SBDC (Small Business Development Center) and Central PA Chamber of Commerce events as well as events that I have organized at MePush. My writing: I write a lot. Blog articles on the MePush site, press-releases for upcoming events to media contracts, posts on LinkedIn (https://www.linkedin.com/in/artocain/), presentations on Slideshare (https://www.slideshare.net/ArtOcain), posts on the Microsoft Tech Community, articles on Medium (https://medium.com/@artocain/), and posts on Quora (https://www.quora.com/profile/Art-Ocain-1). I am always looking for new places to write, as well. My certifications: ISACA Certified Information Security Manager (CISM), Certified Web Application Security Professional (CWASP), Certified Data Privacy Practitioner (CDPP), Cisco Certified Network Associate (CCNA), VMware Certified Professional (VCP-DCV), Microsoft Certified System Engineer (MCSE), Veeam Certified Engineer (VMCE), Microsoft 365 Security Administrator, Microsoft 365 Enterprise Administrator, Azure Administrator, Azure Security Administrator, Azure Architect, CompTIA Network+, CompTIA Security+, ITIL v4 Foundations, Certified ScrumMaster, Certified Scrum Product Owner, AWS Certified Cloud Practitioner See certification badges on Acclaim here: https://www.youracclaim.com/users/art-ocain/badges My experience: I have a lot of experience from developing a great company with great people and culture to spinning up an impressive DevOps practice and designing impressive solutions. I have been a project manager, a President, a COO, a CTO, and an incident response coordinator. From architecting cloud solutions down to the nitty-gritty of replacing hardware, I have done it all. When it comes to technical leadership, I am the go-to for many companies. I have grown businesses and built brands. I have been a coach and a mentor, developing the skills and careers of those in my company. I have formed and managed teams, and developed strong leaders and replaced myself within the company time and again as I evolved. See my experience on LinkedIn here: https://www.linkedin.com/in/artocain/

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