What stages should data go through to ensure that it is adding value to our business? The answer lies in a series of steps, as explained below:
1) Data itself is a collection of facts in an unorganized form. It has no meaning of its own and serves as a starting point to reach a meaningful result. Logging, records, measurements, etc. are all data but it answers none of the questions to draw a conclusion.
2) Information is data that has been “cleaned” of errors and processed in a way that makes it easier to measure, visualize and analyze for a specific purpose. By asking relevant questions, we can derive valuable information from the data and make it more useful for us.
3) Knowledge answers “how” can we apply the information to achieve our goal. This includes combining multiple pieces of information together with a viable context in mind.
4) Wisdom is the knowledge applied in action. If data and information are like a look back to the past, knowledge and wisdom are associated with what we do now and what we want to achieve in the future.
This concept is also known as DIKW pyramid. A simple example is illustrated in the enclosed image.
This content was originally published for my TechTuesday’s initiative on LinkedIn.
