Data, Information and Knowledge

Unit 2

Unit 2

Data, Information and Knowledge

Structure
2.0 Introduction
2.1 Data, Information and Knowledge
Interrelationship, differences and characteristics
2.2 Data Meaning, Definition and types
Importance of Data in Managerial Process
2.3 Information Meaning, Definition, Changing concepts
Types and quality
2.4 Data / Information Processing Cycle
2.5 Data / Information Security, Cyber Security
2.6 Knowledge Meaning, Definition, Types
2.7 Summary

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2.0 Introduction
In the earlier unit, you came to know about Information Technology conceptual basis, definition, components, and application areas;
developments in computer hardware, software and their role in digital
transformation; developments in Telecommunication technology and
convergence of technologies.
Data are values of qualitative or quantitative variables, belonging to a set of
items. Data are typically the results of measurements and can be visualized
using graphs or images. Information, in its most restricted technical sense,
is a sequence of symbols that can be interpreted as a message. Information
can be recorded as signs, or transmitted as signals. Information is any kind
of event that affects the state of a dynamic system. Knowledge is a
familiarity with someone or something, which can include facts, information,
descriptions, or skills acquired through experience or education. It can refer
to the theoretical or practical understanding of a subject. It can be implicit
(as with practical skill or expertise) or explicit (as with the theoretical
understanding of a subject); and it can be more or less formal or systematic.

(http://www.landcareresearch.co.nz/research/sustainablesoc/social/images/da

taknowledgesmall.gif)

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In this unit, we appreciate the interrelation between Data-InformationKnowledge dimensions; their types, interrelationship, differences and
characteristics; their importance in managerial process; processing cycle &
security aspects of data & information. For a better understanding of this
unit, prior knowledge about the Information Technology for Management is
recommended.

Objectives:
After studying this unit, you should be able to:
Explain the terms data, information, and knowledge
Appreciate the interrelation between the above terms
Understand the importance of data in managerial process
Explain the data/information processing cycle & security aspects

2.1 Data, Information and Knowledge

Data as an abstract concept can be viewed as the lowest level of
abstraction from which information and then knowledge are derived. Raw
data, i.e., unprocessed data, refers to a collection of numbers, characters
and is a relative term; data processing commonly occurs by stages, and the
"processed data" from one stage may be considered the "raw data" of the
next. Field data refers to raw data collected in an uncontrolled in situ
environment. Experimental data refers to data generated within the context
of a scientific investigation by observation and recording.
The word data is the plural of datum, neuter past participle of the Latin dare,
"to give", hence "something given". In discussions of problems in geometry,
mathematics, engineering, and so on, the terms givens and data are used
interchangeably. Such usage is the origin of data as a concept in computer
science or data processing: data are numbers, words, images, etc.,
accepted as they stand.
Conceptually, information is the message (utterance or expression) being
conveyed. This concept has numerous other meanings in different contexts.
Moreover, the concept of information is closely related to notions of
constraint, communication, control, data, form, instruction, knowledge,
meaning, mental stimulus, pattern, perception, representation, and
especially entropy.

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In philosophy, the study of knowledge is called epistemology, and the

philosopher Plato famously defined knowledge as "justified true belief."
However no single agreed upon definition of knowledge exists, and there
are numerous theories to explain it. Knowledge acquisition involves complex
cognitive processes: perception, communication, association and reasoning;
while knowledge is also said to be related to the capacity of
acknowledgment in human beings. Many of us would probably say
knowledge that something is true involves:

Certainty it's hard if not impossible to deny

Evidence it has to be based on something

Practicality it has to actually work in the real world

Broad agreement lots of people have to agree it's true

(http://ww w.viktoria.se/~dixi/img/dik-table.gif)
Interrelationship, differences and characteristics

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The terms data, information and knowledge are frequently used for
overlapping concepts. The main difference is in the level of abstraction
being considered. Data is the lowest level of abstraction, information is the
next level, and finally, knowledge is the highest level among all three. Data
on its own carries no meaning. For data to become information, it must be
interpreted and take on a meaning. For example, the height of Mt. Everest is
generally considered as "data", a book on Mt. Everest geological
characteristics may be considered as "information", and a report containing
practical information on the best way to reach Mt. Everest's peak may be
considered as "knowledge".

(http://www.systems-thinking.org/dikw/dikw1.gif)
Information as a concept bears a diversity of meanings, from everyday
usage to technical settings. Generally speaking, the concept of information
is closely related to notions of constraint, communication, control, data,
form, instruction, knowledge, meaning, mental stimulus, pattern, perception,
and representation.
It is people and computers who collect data and impose patterns on it.
These patterns are seen as information which can be used to enhance
knowledge. These patterns can be interpreted as truth, and are authorized
as aesthetic and ethical criteria. Events that leave behind perceivable
physical or virtual remains can be traced back through data. Marks are no
longer considered data once the link between the mark and observation is
broken.

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Information is any type of pattern that influences the formation or

transformation of other patterns. In this sense, there is no need for a
conscious mind to perceive, much less appreciate, the pattern. Consider, for
example, DNA. The sequence of nucleotides is a pattern that influences the
formation and development of an organism without any need for a
conscious mind. If, however, the premise of "influence" implies that
information has been perceived by a conscious mind and also interpreted by
it, the specific context associated with this interpretation may cause the
transformation of the information into knowledge. Complex definitions of
both "information" and "knowledge" make such semantic and logical
analysis difficult, but the condition of "transformation" is an important point in
the study of information as it relates to knowledge, especially in the
business discipline of knowledge management.

(http://www.trainmor-knowmore.eu/img/1.3.1.jpg)

2.2 Types of Data

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In certain technical fields (especially computer programming and statistics),

a data type is a classification identifying one of various types of data, such
as real-valued, integer or Boolean, that determines the possible values for
that type; the operations that can be done on values of that type; the
meaning of the data; and the way values of that type can be stored.
Following types of data may be used for business analysis:
Nominal
The name 'Nominal' comes from the Latin nomen, meaning 'name' and
nominal data are items which are differentiated by a simple naming system.
The only thing a nominal scale does is to say that items being measured
have something in common, although this may not be described.
Nominal items may have numbers assigned to them. This may appear
ordinal but is not -- these are used to simplify capture and referencing.
Nominal items are usually categorical, in that they belong to a definable
category, such as 'employees'. Example: the number pinned on a sports
person; a set of countries.
Ordinal
Items on an ordinal scale are set into some kind of order by their position on
the scale. This may indicate such as temporal position, superiority, etc.
The order of items is often defined by assigning numbers to them to show
their relative position. Letters or other sequential symbols may also be used
as appropriate.
Ordinal items are usually categorical, in that they belong to a definable
category, such as '1956 marathon runners'. You cannot do arithmetic with
ordinal numbers -- they show sequence only. Example: the first, third and
fifth person in a race; pay bands in an organization, as denoted by A, B, C
and D.
Interval
Interval data (also sometimes called integer) is measured along a scale in
which each position is equidistant from one another. This allows for the
distance between two pairs to be equivalent in some way.
This is often used in psychological experiments that measure attributes
along an arbitrary scale between two extremes. Interval data cannot be
multiplied or divided. Example: my level of happiness, rated from 1 to 10;
temperature, in degrees Fahrenheit.

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Ratio
In a ratio scale, numbers can be compared as multiples of one another.
Thus one person can be twice as tall as another person. Important also, the
number zero has meaning. Thus the difference between a person of 35 and
a person 38 is the same as the difference between people who are 12 and
15. A person can also have an age of zero.
Ratio data can be multiplied and divided because not only is the difference
between 1 and 2 the same as between 3 and 4, but also that 4 is twice as
much as 2. Interval and ratio data measure quantities and hence are
quantitative. Because they can be measured on a scale, they are also called
scale data. Example: a person's weight; the number of pizzas I can eat
before fainting.

(http://www.socialresearchmethods.net/kb/Assets/images/measlev2.gif)
Parametric vs. Non-parametric
Interval and ratio data are parametric, and are used with parametric tools in
which distributions are predictable (and often Normal). Nominal and ordinal
data are non-parametric, and do not assume any particular distribution.
They are used with non-parametric tools such as the Histogram.
Continuous and Discrete

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Continuous measures are measured along a continuous scale which can be

divided into fractions, such as temperature. Continuous variables allow for
infinitely fine sub-division, which means if you can measure sufficiently
accurately, you can compare two items and determine the difference.
Discrete variables are measured across a set of fixed values, such as age in
years (not microseconds). These are commonly used on arbitrary scales,
such as scoring your level of happiness, although such scales can also be
continuous.
Classes of data types
Machine data types
All data in computers based on digital electronics is represented as bits
(alternatives 0 and 1) on the lowest level. The smallest addressable unit of
data is usually a group of bits called a byte (usually an octet, which is 8
bits). The unit processed by machine code instructions is called a word (as
of 2011, typically 32 or 64 bits).
Boolean type
The Boolean type represents the values: true and false. Although only two
values are possible, they are rarely implemented as a single binary digit for
efficiency reasons. Many programming languages do not have an explicit
boolean type, instead interpreting (for instance) 0 as false and other values
as true.
Numeric types
Such as:
Integer data types, or "whole numbers". May be subtyped according
to their ability to contain negative values (eg. unsigned in C and
C++). May also have a small number of predefined subtypes (such
as short and long in C/C++); or allow users to freely define
subranges such as 1..12 (eg. Pascal/Ada).
Floating point data types, sometimes misleadingly called reals,
contain fractional values. They usually have predefined limits on
both their maximum values and their precision.
Fixed point data types are convenient for representing monetary
values. They are often implemented internally as integers, leading to
predefined limits.

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String and text types

Such as
Alphanumeric character. A letter of the alphabet, digit, blank
space, punctuation mark, etc.
Alphanumeric strings, a sequence of characters. They are typically
used to represent words and text.
Character and string types can store sequences of characters from a
character set such as ASCII. Since most character sets include the digits, it
is possible to have a numeric string, such as "1234". However, many
languages would still treat these as belonging to a different type to the
numeric value 1234.
Character and string types can have different subtypes according to the
required character "width".
Enumerations
The enumerated type. This has values which are different from each other,
and which can be compared and assigned, but which do not necessarily
have any particular concrete representation in the computer's memory;
compilers and interpreters can represent them arbitrarily. For example, the
four suits in a deck of playing cards may be four enumerators named CLUB,
DIAMOND, HEART, SPADE, belonging to an enumerated type named suit.
If a variable V is declared having suit as its data type, one can assign any of
those four values to it. Some implementations allow programmers to assign
integer values to the enumeration values, or even treat them as typeequivalent to integers.
Composite types
Composite types are derived from more than one primitive type. This can be
done in a number of ways. The ways they are combined are called data
structures. Composing a primitive type into a compound type generally
results in a new type, eg. array-of-integer is a different type to integer.
An array stores a number of elements of the same type in a specific
order. They are accessed using an integer to specify which element
is required (although the elements may be of almost any type).
Arrays may be fixed-length or expandable.
Record (also called tuple or struct) Records are among the simplest
data structures. A record is a value that contains other values,

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typically in fixed number and sequence and typically indexed by

names. The elements of records are usually called fields or
members.
Union. A union type definition will specify which of a number of
permitted primitive types may be stored in its instances, eg "float or
long integer". Contrast with a record, which could be defined to
contain a float and an integer; whereas, in a union, there is only one
value at a time.
A set is an abstract data structure that can store certain values,
without any particular order, and no repeated values. Values
themselves are not retrieved from sets, rather one tests a value for
membership to obtain a Boolean "in" or "not in".
An object contains a number of data fields, like a record, and also a
number of programmed code fragments for accessing or modifying
them. Data structures not containing code, like those above, are
called plain old data structure.

Importance of Data in Managerial Process

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Information as a necessary evil: - Information was regarded as a

necessary evil, associated with the development, production and
marketing of products or services. Information was thus merely

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considered as a by-product of transactions in the organizations. As a

result, information systems of 1950s were primarily designed with
the aim to reduce the cost of routine paper processing in accounting
areas. The term Electronic Data Processing (EDP) was coined in
this period.
Information for General Management Support: - By mid-sixties,
organizations began recognizing information as an important tool,
which could support general management tasks. The information
systems corresponding to this period were known as management
information system (MIS) and were thought of as system processing
data into information.
Information for decisionmaking: -In early eighties, information
was regarded as providing special-purpose, tailor-made
management controls over the organization. Decision support
systems and executive support systems were important
advancements, which took place during this period. The purpose of
such information systems was to improve and speed-up the
decision-making process of top-level managers.
Information as a strategic resource: - In the revolutionary change
pattern, the concept of information changed again by the mideighties and information has since then been considered as a
strategic resource, capable of providing competitive advantage or a
strategic weapon to fight the competition. Latest information systems
which are known as strategic systems, support this concept of
information

2.3 Quality of Information

Information quality (IQ) is a term to describe the quality of the content of
information systems. It is often pragmatically defined as: "The fitness for use
of the information provided." Although this pragmatic definition is usable for
most everyday purposes, specialists often use more complex models for
information quality. Most information system practitioners use the term
synonymously with data quality. However, as many academics make a
distinction between data and information, some will insist on a distinction
between data quality and information quality. This distinction would be akin
to the distinction between syntax and semantics where for example, the
semantic value of "one" could be expressed in different syntaxes like 00001;

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1.0000; 01.0; or 1. Thus a data difference may not necessarily represent

poor information quality.

(http://www.emeraldinsight.com/content_images/fig/0291030701002.png)
"Information quality" is a measure of the value which the information
provides to the user of that information. "Quality" is often perceived as
subjective and the quality of information can then vary among users and
among uses of the information. Nevertheless, a high degree of quality
increases its objectivity or at least the inter-subjectivity. Accuracy can be
seen as just one element of IQ but, depending upon how it is defined, can
also be seen as encompassing many other dimensions of quality.
If not, it is perceived that often there is a trade-off between accuracy and
other dimensions, aspects or elements of the information determining its
suitability for any given tasks. A list of dimensions or elements used in
assessing subjective Information Quality is:
Intrinsic IQ: Accuracy, Objectivity, Believability, Reputation
Contextual
IQ:
Relevancy,
Value-Added,
Timeliness,
Completeness, Amount of information
Representational IQ: Interpretability, Ease of understanding,
Concise representation, Consistent representation
Accessibility IQ: Accessibility, Access security
Proposed Quality Metrics
Authority/Verifiability: Authority refers to the expertise or
recognized official status of a source. Consider the reputation of the
author and publisher. When working with legal or government
information, consider whether the source is the official provider of

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the information. Verifiability refers to the ability of a reader to verify

the validity of the information irrespective of how authoritative the
source is. To verify the facts is part of the duty of care of the
journalistic deontology, as well as, where possible, to provide the
sources of information so that they can be verified
Scope of coverage: Scope of coverage refers to the extent to which
a source explores a topic. Consider time periods, geography or
jurisdiction and coverage of related or narrower topics.
Composition and Organization: Composition and Organization
has to do with the ability of the information source to present its
particular message in a coherent, logically sequential manner.
Objectivity: Objectivity is the bias or opinion expressed when a
writer interprets or analyze facts. Consider the use of persuasive
language, the sources presentation of other viewpoints, its reason
for providing the information and advertising.
Integrity: Adherence to moral and ethical principles; soundness of
moral character. The state of being whole, entire, or undiminished
Comprehensiveness:
1. Of large scope; covering or involving much; inclusive: a
comprehensive study.
2. Comprehending mentally; having an extensive mental grasp.
3. Insurance. covering or providing broad protection against loss.
Validity: Validity of some information has to do with the degree of
obvious truthfulness which the information caries
Uniqueness: As much as uniqueness of a given piece of
information is intuitive in meaning, it also significantly implies not
only the originating point of the information but also the manner in
which it is presented and thus the perception which it conjures. The
essence of any piece of information we process consists to a large
extent of those two elements.
Timeliness: Timeliness refers to information that is current at the
time of publication. Consider publication, creation and revision dates.
Beware of Web site scripting that automatically reflects the current
days date on a page.

2.4 Data / Information Processing Cycle

Data processing is the act of handling or manipulating data in some fashion.

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Regardless of the activities involved in it, processing tries to assign meaning

to data. Thus, the ultimate goal of processing is to transform data into
information. Data processing is the process through which facts and figures
are collected, assigned meaning, communicated to others and retained for
future use. Hence we can define data processing as a series of actions or
operations that converts data into useful information. We use the term 'data
processing system' to include the resources that are used to accomplish the
processing of data.
Data processing consists of those activities which are necessary to
transform data into information. Man has in course of time devised certain
tools to help him in processing data. These include manual tools such as
pencil and paper, mechanical tools such as filing cabinets,
electromechanical tools such as adding machines and typewriters, and
electronic tools such as calculators and computers. Many people
immediately associate data processing with computers. As stated above, a
computer is not the only tool used for data processing; it can be done
without computers also. However, computers have outperformed people for
certain tasks. There are some other tasks for which computers are a poor
substitute for human skill and intelligence.
Data Processing Activities
Regardless to the type of equipment used, various functions and activities
which need to be performed for data processing can be grouped under five
basic categories as shown below:

Collection
Data originates in the form of events transaction or some observations. This
data is then recorded in some usable form. Data may be initially recorded
on paper source documents and then converted into a machine usable form
for processing. Alternatively, they may be recorded by a direct input device
in a paperless, machine-readable form. Data collection is also termed as
data capture.

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Conversion
Once the data is collected, it is converted from its source documents to a
form that is more suitable for processing. The data is first codified by
assigning identification codes. A code comprises of numbers, letters, special
characters, or a combination of these. For example, an employee may be
allotted a code as 52-53-162, his category as A class, etc. It is useful to
codify data, when data requires classification. To classify means to
categorize, i.e., data with similar characteristics are placed in similar
categories or groups. For example, one may like to arrange accounts data
according to account number or date. Hence a balance sheet can easily be
prepared.
After classification of data, it is verified or checked to ensure the accuracy
before processing starts. After verification, the data is transcribed from one
data medium to another. For example, in case data processing is done
using a computer, the data may be transformed from source documents to
machine sensible form using magnetic tape or a disk.
Manipulation
Once data is collected and converted, it is ready for the manipulation
function which converts data into information. Manipulation consists of
following activities:
Sorting: It involves the arrangement of data items in a desired
sequence. Usually, it is easier to work with data if it is arranged in a
logical sequence. Most often, the data are arranged in alphabetical
sequence. Sometimes sorting itself will transform data into
information. For example, a simple act of sorting the names in
alphabetical order gives meaning to a telephone directory. The
directory will be practically worthless without sorting.
Business data processing extensively utilizes sorting technique.
Virtually all the records in business files are maintained in some
logical sequence. Numeric sorting is common in computer-based
processing systems because it is usually faster than alphabetical
sorting.
Calculating: Arithmetic manipulation of data is called calculating.
Items of recorded data can be added to one another, subtracted,
divided or multiplied to create new data. Calculation is an integral
part of data processing. For example, in calculating an employee's
pay, the hours worked multiplied by the hourly wage rate gives the

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gross pay. Based on total earning, income-tax deductions are

computed and subtracted from gross-pay to arrive at net pay.
Summarizing: To summarize is to condense or reduce masses of
data to a more usable and concise form as shown in fig. 2.2(b). For
example, you may summarize a lecture attended in a class by
writing small notes in one or two pages. When the data involved is
numbers, you summarize by counting or accumulating the totals of
the data in a classification or by selecting strategic data from the
mass of data being processed. For example, the summarizing
activity may provide a general manager with sales-totals by major
product line, the sales manager with sales totals by individual
salesman as well as by the product line and a salesman with sales
data by customer as well as by product line.
Comparing: To compare data is to perform an evaluation in relation
to some known measure. For example, business managers compare
data to discover how well their companies are doing. They many
compare current sales figures with those for last year to analyze the
performance of the company in the current month.

Managing the Output Results

Once data has been captured and manipulated following activities may be
carried out:
Storing: To store is to hold data for continued or later use. Storage
is essential for any organized method of processing and re-using
data. The storage mechanisms for data processing systems are file
cabinets in a manual system, and electronic devices such as
magnetic disks/magnetic tapes in case of computer based system.
The storing activity involves storing data and information in
organized manner in order to facilitate the retrieval activity. Of
course, data should be stored only if the value of having them in
future exceeds the storage cost.
Retrieving: To retrieve means to recover or find again the stored
data or information. Retrieval techniques use data storage devices.
Thus data, whether in file cabinets or in computers can be recalled
for further processing. Retrieval and comparison of old data gives
meaning to current information.
Communication

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Communication is the process of sharing information. Unless the

information is made available to the users who need it, it is worthless.
Thus, communication involves the transfer of data and information produced
by the data processing system to the prospective users of such information
or to another data processing system. As a result, reports and documents
are prepared and delivered to the users. In electronic data processing,
results are communicated through display units or terminals.
Reproduction
To reproduce is to copy or duplicate data or information. This reproduction
activity may be done by hand or by machine.
Data Processing Cycle
The data processing activities described above are common to all data
processing systems from manual to electronic systems. These activities can
be grouped in four functional categories, viz., data input, data processing,
data output and storage, constituting what is known as a data processing
cycle.
Input
The term input refers to the activities required to record data and to make it
available for processing. The input can also include the steps necessary to
check, verify and validate data contents.

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Processing
The term processing denotes the actual data manipulation techniques such
as classifying, sorting, calculating, summarizing, comparing, etc. that
convert data into information.
Output
It is a communication function which transmits the information, generated
after processing of data, to persons who need the information. Sometimes
output also includes decoding activity which converts the electronically
generated information into human-readable form.
Storage
It involves the filing of data and information for future use. The above
mentioned four basic functions are performed in a logical sequence as
shown in above figure in all data processing systems.
2.5 Information Security
Information security means protecting information and information systems
from unauthorized access, use, disclosure, disruption, modification, perusal,
inspection, recording or destruction. The terms information security,
computer security and information assurance are frequently used
interchangeably. These fields are interrelated often and share the common

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goals of protecting the confidentiality, integrity and availability of information;

however, there are some subtle differences between them.

Governments, military, corporations, financial institutions, hospitals, and

private businesses amass a great deal of confidential information about their
employees, customers, products, research, and financial status. Most of this
information is now collected, processed and stored on electronic computers
and transmitted across networks to other computers. Should confidential
information about a business' customers or finances or new product line fall
into the hands of a competitor, such a breach of security could lead to
negative consequences. Protecting confidential information is a business
requirement, and in many cases also an ethical and legal requirement.
For the individual, information security has a significant effect on privacy,
which is viewed very differently in different cultures. The field of information
security has grown and evolved significantly in recent years. There are
many ways of gaining entry into the field as a career. It offers many areas
for specialization including: securing network(s) and allied infrastructure,
securing applications and databases, security testing, information systems
auditing, business continuity planning and digital forensics science, etc.

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For over twenty years, information security has held confidentiality, integrity
and availability (known as the CIA triad) to be the core principles of
information security.
Confidentiality
Confidentiality is the term used to prevent the disclosure of information to
unauthorized individuals or systems. For example, a credit card transaction
on the Internet requires the credit card number to be transmitted from the
buyer to the merchant and from the merchant to a transaction processing
network. The system attempts to enforce confidentiality by encrypting the
card number during transmission, by limiting the places where it might
appear (in databases, log files, backups, printed receipts, and so on), and
by restricting access to the places where it is stored. If an unauthorized
party obtains the card number in any way, a breach of confidentiality has
occurred.
Integrity
In information security, integrity means that data cannot be modified
undetectably. This is not the same thing as referential integrity in databases,
although it can be viewed as a special case of Consistency as understood in
the classic ACID model of transaction processing. Integrity is violated when
a message is actively modified in transit. Information security systems
typically provide message integrity in addition to data confidentiality.
Availability
For any information system to serve its purpose, the information must be
available when it is needed. This means that the computing systems used to
store and process the information, the security controls used to protect it,
and the communication channels used to access it must be functioning
correctly. High availability systems aim to remain available at all times,
preventing service disruptions due to power outages, hardware failures, and
system upgrades. Ensuring availability also involves preventing denial-ofservice attacks.
Authenticity
In computing, e-Business, and information security, it is necessary to ensure
that the data, transactions, communications or documents (electronic or

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physical) are genuine. It is also important for authenticity to validate that

both parties involved are who they claim they are.
Non-Repudiation
In law, non-repudiation implies one's intention to fulfill their obligations to a
contract. It also implies that one party of a transaction cannot deny having
received a transaction nor can the other party deny having sent a
transaction. Electronic commerce uses technology such as digital
signatures and public key encryption to establish authenticity and nonrepudiation.
2.6 Types of Knowledge
Understanding the different forms that knowledge can exist in, and thereby
being able to distinguish between various types of knowledge, is an
essential step for knowledge management (KM). For example, it should be
fairly evident that the knowledge captured in a document would need to be
managed (i.e. stored, retrieved, shared, changed, etc.) in a totally different
way than that gathered over the years by an expert craftsman.
Over the centuries many attempts have been made to classify knowledge,
and different fields have focused on different dimensions. This has resulted
in numerous classifications and distinctions based in philosophy and even
religion. Within business and KM, two types of knowledge are usually
defined, namely explicit and tacit knowledge. The former refers to codified
knowledge, such as that found in documents, while the latter refers to noncodified and often personal/experience-based knowledge. Some
researchers make a further distinction and talk of embedded knowledge.
This way, one differentiates between knowledge embodied in people and
that embedded in processes, organizational culture, routines, etc. (Horvath
2000).
Explicit Knowledge
This type of knowledge is formalized and codified, and is sometimes
referred to as know-what (Brown & Duguid 1998). It is therefore fairly easy
to identify, store, and retrieve (Wellman 2009). This is the type of knowledge
most easily handled by KMS, which are very effective at facilitating the
storage, retrieval, and modification of documents and texts.
From a managerial perspective, the greatest challenge with explicit
knowledge is similar to information. It involves ensuring that people have

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access to what they need; that important knowledge is stored; and that the
knowledge is reviewed, updated, or discarded.
Many theoreticians regard explicit knowledge as being less important (e.g.
Brown & Duguid 1991, Cook & Brown 1999, Bukowitz & Williams 1999,
etc.). It is considered simpler in nature and cannot contain the rich
experience based know-how that can generate lasting competitive
advantage.
Although this is changing to some limited degree, KM initiatives driven by
technology have often had the flaw of focusing almost exclusively on this
type of knowledge. As discussed previously, in fields such as IT there is
often a lack of a more sophisticated definition. This has therefore created
many products labeled as KM systems, which in actual fact are/were
nothing more than information and explicit knowledge management
software. Explicit knowledge is found in: databases, memos, notes,
documents, etc. (Botha et al. 2008)
Tacit (Embodied) Knowledge
This type of knowledge was originally defined by Polanyi in 1966. It is
sometimes referred to as know-how (Brown & Duguid 1998) and refers to
intuitive, hard to define knowledge that is largely experience based.
Because of this, tacit knowledge is often context dependent and personal in
nature. It is hard to communicate and deeply rooted in action, commitment,
and involvement (Nonaka 1994).
Tacit knowledge is also regarded as being the most valuable source of
knowledge, and the most likely to lead to breakthroughs in the organization
(Wellman 2009). Gamble & Blackwell (2001) link the lack of focus on tacit
knowledge directly to the reduced capability for innovation and sustained
competitiveness. KMS have a very hard time handling this type of
knowledge. An IT system relies on codification, which is something that is
difficult / impossible for the tacit knowledge holder.
Using a reference by Polanyi (1966), imagine trying to write an article that
would accurately convey how one reads facial expressions. It should be
quite apparent that it would be near impossible to convey our intuitive
understanding gathered from years of experience and practice. Virtually all
practitioners rely on this type of knowledge. An IT specialist for example will
troubleshoot a problem based on his experience and intuition. It would be

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very difficult for him to codify his knowledge into a document that could
convey his know-how to a beginner. This is one reason why experience in a
particular field is so highly regarded in the job market.
The exact extent to which IT systems can aid in the transfer and
enhancement of tacit knowledge is a rather complicated discussion. For
now, suffice it to say that successful KM initiatives must place a very strong
emphasis on the tacit dimension, focusing primarily on the people involved,
and they must understand the limitations imposed by computerized
systems.
Tacit knowledge is found in: the minds of human stakeholders. It includes
cultural beliefs, values, attitudes, mental models, etc. as well as skills,
capabilities and expertise (Botha et al 2008). On this site, I will generally
limit tacit knowledge to knowledge embodied in people, and refer separately
to embedded knowledge (as defined below), whenever making this
distinction is relevant.

(http://www.cognitivedesignsolutions.com/images/ExplicitTacitIceberg.jpg)
Embedded Knowledge

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Embedded knowledge refers to the knowledge that is locked in processes,

products, culture, routines, artifacts, or structures (Horvath 2000, Gamble &
Blackwell 2001). Knowledge is embedded either formally, such as through a
management initiative to formalize a certain beneficial routine, or informally
as the organization uses and applies the other two knowledge types.
The challenges in managing embedded knowledge vary considerably and
will often differ from embodied tacit knowledge. Culture and routines can be
both difficult to understand and hard to change. Formalized routines on the
other hand may be easier to implement and management can actively try to
embed the fruits of lessons learned directly into procedures, routines, and
products.
IT's role in this context is somewhat limited but it does have some useful
applications. Broadly speaking, IT can be used to help map organizational
knowledge areas; as a tool in reverse engineering of products (thus trying to
uncover hidden embedded knowledge); or as a supporting mechanism for
processes and cultures. However, it has also been argued that IT can have
a disruptive influence on culture and processes, particularly if implemented
improperly. Due to the difficulty in effectively managing embedded
knowledge, firms that succeed may enjoy a significant competitive
advantage.
Embedded knowledge is found in: rules, processes, manuals, organizational
culture, codes of conduct, ethics, products, etc. It is important to note, that
while embedded knowledge can exist in explicit sources (i.e. a rule can be
written in a manual), the knowledge itself is not explicit, i.e. it is not
immediately apparent why doing something this way is beneficial to the
organization.

2.7 Summary
Let us sum up what we have discussed in this unit.

Data represents unorganized and unprocessed facts. Usually data is

static in nature. It can represent a set of discrete facts about events.
Data is a prerequisite to information.
Information is not only relevant but also critical for the decision maker as
the quality of decision making is dependent on the quality of information.

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Information to be of use for the end user should be accurate, reliable,

relevant, complete, cost effective, timely available and consistent
Knowledge can be defined as the understanding obtained through the
process of experience or appropriate study. Knowledge is derived from
information in the same way information is derived from data. We can
view it as an understanding of information based on its perceived
importance or relevance to a problem area. Knowledge is often an
organisations most valuable asset
Information security means protecting information and information
systems from unauthorized access, use, disclosure, disruption,
modification, perusal, inspection, recording or destruction.

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