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Information Age

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UNDERSTANDING DATA, INFORMATION, KNOWLEDGE
AND THEIR INTERRELATIONSHIPS
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By Anthony Liew
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.
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.
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 cognition or recognition (know-what), capacity to
act (know-how), and 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.

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Liev A. Understanding Data, Information, Knowledge and Their Interrelationships /
Anthony Liev. – Available at: http://www.tlainc.com/articl134.htm.