What is Data
Data are discrete row facts. The use of data is relative, as it can be either useful or not. Data has no significant meaning or interpretation. For an example Data can be just numbers, images or sounds which derive from observation and/or measurement.
The amount of data needed is also depends on the nature or the purpose. For an example a study or a research on a vast subject area like 'Nature of Earth' will need lots of data, but in an organisational context the data is more precise. Analyze or argue of these data should be done with the correct approach and techniques, which will eventually comes with experience. But gather too much of data also may make it difficult to identify the data that matters.
What is Information
When data is given with significance by categorizing, condensing then it is information. This requires some intellectual input of analysis and also should have relevance and a purpose.
Information should handle with care and cautious as it has the ability to change the way or path the receiver distinguishes about a certain matter. So the creator for some piece of information should have the expertise on the relevant area.
Path to Knowledge
Knowledge can be address as a set of valuable and organized information from a “Human mind”. It has a significance and usefulness. But it is not that easy to explain knowledge and stop in just one sentence. Knowledge can be also differing from person or purpose.
A person may keep some information in his/her mind by just memorizing them. For an example the ATM card pin number, a telephone number. These types of knowledge can be for a shot time in human memory. For an example a person can memorize a mathematical equation or a result of a formula such as “5 X 2 = 10”. But if you ask the answer for “1234 X 4321” it may be hard for the same person to answer as it is not memorized. There should be some analytical skills to find the answer to such a mathematical expression. This can be said as the ability to understand.
From that view knowledge can be understood as data or information added with further intellectual analysis. This process involves interpretation and adding up meaning and it is also structured with existing beliefs and knowledge bodies. People who have the ability to “understand” can synthesize new knowledge, or in some cases, at least new information, from what is previously understood. This means that understanding can build upon currently held information and knowledge. A proper example would be a university student survey, where the statistical data will be analyzed and understand to either justify a course of action or to decide on certain matters. This process involves knowledge from experience or may be previous surveys, from collecting data to analyse data and information and will finally develop new knowledge.
This understands the connection and the relationship between data, information and knowledge is not exactly unidirectional. While data and information provide the foundation to create knowledge, knowledge can be use to create data and information as well. It is always a dynamic process. Furthermore the knowledge each party posse shape the type of data or information that will be generated. The following figure graphically displays the connection between the three elements.

References:
- Hislop Donald, "Knowledge management in organizations", 2005
- Bellinger Gene, "Data, Information, Knowledge, and Wisdom", http://www.systems-thinking.org/index.htm, 2004
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