“If you
know the enemy and know yourself, you need not fear the result of a hundred
battles. If you know yourself but not the enemy, for every victory gained you
will also suffer a defeat. If you know neither the enemy nor yourself, you will
succumb in every battle.” – Sun Tzu
Sun
Tzu's quote concerns our ability to understand both ourselves and the world
around us. Our ability to understand the world around us lies in our ability to
make sense of the information we collect through our sensors (eyes, ears, nose,
etc.) and through the tools we create (information systems, media, smart
technologies, etc.). This is important because it, the understanding we gain,
provides the means for making meaningful decisions. The three pillars of any
decision includes the data we collect, which gives way to the information we
produce, and leads further to the knowledge we infer. Although mutually
supporting, the three pillars of good decision-making bear a difference worth
highlighting.
Data represents
those individual facts about the world around us that hold little value by
themselves. Such facts include the temperature and declining market data.
Without context, facts are simple facts. Placed within the context of say a
specific event, a collection of facts can be processed to produce information
about that specific event.
The difference
between information and knowledge lies in its value. Information is simply the
integration of various pieces of collected data. For instance, the temperature
and declining market data, placed within the context of the agriculture
industry, may highlight important information concerning the impact of weather
conditions on the production of food.
Knowledge is the
application of individual expertise used to make sense of the information in
whatever context we find ourselves in. In our running example an expert from
the agriculture industry may place current weather conditions within the
context of historical weather conditions and forecasted weather conditions to
determine the long-term impacts on the production of crops.
The integration of
knowledge with individual expertise, leads to some degree of understanding. The
actions we take or the decisions we make represent the applications of some
degree of understanding gained through this process of moving from data to decisions.
The knowledge gained in the running example may lead to a decision to adjust
the prices of specific food items. Moving from simple facts to degrees of
understanding results from the application of management. Management is simply
the set of processes we use to control the flow of information as we move from
data to decisions.
The Three Pillars of Decision-making
Data Management
Data represents the
first level within the information hierarchy. Data management represents the
first stage in the process of moving from data to decisions. Data are simply
the facts about our environment. Examples of data include measures of the
atmospheric temperature, the grid location of a threat, or even a vehicle's
tire pressure. As unprocessed facts, data can only offer a limited idea of what
is going on in our environment. However, identifying the relationships that
exists between disparate pieces of data can often provide additional clarity,
offering a more informed idea of what is going on in our environment. The act
of identifying relationships between disparate pieces of data starts the
process of transforming data into information.
Information Management
Information
represents the second level within the information hierarchy. Information
management represents the second stage in the process of moving from data to
decisions. Information can be derived from simple to complex arrangements of
data that represent the various systems we interact with within our
environment. The more complex the interactions amongst data, the more valuable
the information they produce can be. At this level in the information
hierarchy, the process by which we manage information is extremely important.
It is by the sometimes complicated processes used to manage information that we
increase the value of the information we produce, which in turn paves the way
for developing knowledge. This process includes actions such as analyzing and
disseminating information.
Knowledge Management
Knowledge represents
the third level within the information hierarchy. Knowledge management
represents the third stage in the process of moving from data to decisions.
Developing knowledge requires the expertise of people. Expertise is developed
over time and the people who have it come from various backgrounds with varying
degrees of education and experience. When leveraged, expertise allows the
decision-maker to gain insight from a collection of information.
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