What is Knowledge?

But what exactly is knowledge? Where does it come from? And how can you build it up and spread it around your organization?

Referring to the above figure, note that data are our starting point. Data are simply recorded inputs. Like stacks of cash register receipts in the back office of the grocery store.

You must analyze data in order to convert them to information. For example, you can analyze your cash register receipts (the data) to discover (the information) how much of each product you sell.

Clearly, your cash register receipts are data internal to your organization. Thus, your analysis of that data will yield internal information. At times, you’ll also need information from outside your organization… like your customers’ buying preferences, for example.

But gathering data from outside your organization is generally both expensive and time consuming. Fortunately, you can often skip this external data gathering step and obtain information available from (analyzed by) somebody else. Indeed there are many sources of published information on social, economic, environmental, political, legal and technological issues.

Knowledge, Your Sustainable Competitive Advantage
By http://www.birnbaumassociates.com/building-knowledge.htm