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Finally understood: the relationship between data, information, knowledge and wisdom

author:Lei Mo reads

There is no knowledge in the book

It is often said that knowledge is the key to changing destiny, and it is only through continuous learning and accumulation of knowledge that we can achieve our dreams and goals. Knowledge is so important, so what exactly is knowledge? Is the content of the book knowledge?

There is no knowledge in books, only information. —— 1964, Drucker, "Managing for Results"

Books are more of an information carrier, which can provide us with a large amount of data and information. Just like we see an English book on how to write, if we can't read English and can't understand the content and meaning of the book, then the content on this book is just data for us, not even information.

Finally understood: the relationship between data, information, knowledge and wisdom

In real life, work and study, we often see the words data, information, knowledge and wisdom, but few people can accurately distinguish the relationship between these four concepts and what each customization is.

In today's digital age, data, information, knowledge and wisdom are key elements in shaping a person's thinking and decision-making. Clearly and accurately defining the concepts of each word, as well as the differences and connections between them, are important for our quick decision-making.

Finally understood: the relationship between data, information, knowledge and wisdom

About the DIKW pyramid model

DIKW (Data-to-Information-to-Knowledge-to-Wisdom Model) pyramid model is a model that can help us understand the relationship between data, information, knowledge and wisdom, and can also show us how data is transformed into information, knowledge and wisdom step by step.

In the DIKW model, data, information, knowledge and wisdom present a bottom-up progressive relationship, with each level built on top of its next. The original observation or measurement obtains the data, analyzes and processes the relationship between the data to obtain information, applies the information in combination with the specific action scene to generate knowledge, and applies the known knowledge to predict the future as wisdom.

Finally understood: the relationship between data, information, knowledge and wisdom

Relationships in the DIKW pyramid model

Data

The data is at the bottom of the pyramid. In the past, people often equated data with a combination of numbers, but in fact this understanding is not comprehensive. Data can be text, numbers, symbols, tables, images, voice, video, etc., which are directly derived from factual records and can be obtained through original observations or measurements. Data can be continuous (e.g. sound, temperature, time, etc.) or discrete (e.g. symbols, text, numbers, etc.). Data can also be an abstract representation of the properties, quantity, location, time, relationship and other properties of a thing, such as the temperature and humidity of the atmosphere, the driving route of the car, the file records of students, and business contracts.

Finally understood: the relationship between data, information, knowledge and wisdom

For example, in the day-to-day operations of a company, every income and expense is recorded in detail, which generates a line of data. Let's say a company generates 100 revenues and 100 expenses per day, and each income and expense is recorded. Then, 200 pieces of financial data are generated every day. If you take a monthly basis, there will be about 6,000 pieces of financial data per month. This data includes revenue, expenses, costs, profits, and other aspects, and when combined, it becomes financial data for the entire company.

So, data is an unorganized, raw, unprocessed piece of material. Data itself has no meaning and can only be transformed into information after some kind of processing or interpretation.

Information

Information as a scientific term first appeared in Hartley's 1928 article "The Transfer of Information". In 1948, the American mathematician C.E. Shannon, the founder of information theory, gave a clear definition of information in his paper "Mathematical Principles of Communication": "Information is something used to eliminate random uncertainty", which is regarded as a classical definition and cited.

In Shannon's view, any form of carrier, such as words, numbers, symbols, tables, images, voice, video, etc., cannot be called information if we cannot interpret it to eliminate our uncertainty about something in some way.

Finally understood: the relationship between data, information, knowledge and wisdom

For example, in the day-to-day operations of the company, financial personnel can obtain the financial situation data of the entire company by aggregating and analyzing these data. For example, we can calculate the company's total revenue, total expenses, total profit and other indicators, as well as the specific composition of various costs and expenses. This data becomes a comprehensive picture of the company's financial position. This data can help us understand the profitability and operational efficiency of the company, which in turn can guide us to develop better business strategies.

Therefore, information is meaningful data, which is the product of interpretation, collation and induction of data. Information eliminates uncertainty and informs decision-making. The transmission and exchange of information plays a vital role in human society and is an important force for promoting social development.

Knowledge

Although knowledge is a central element of our daily lives, there is currently no consensus among philosophers, social scientists, and historians on the exact definition of knowledge. The following two definitions of knowledge are relatively well cited.

Knowledge is information for production (meaningful information) - World Bank, World Development Report 1998 - Knowledge for Development, 1998

Knowledge is a unique human resource. There is no knowledge in books, only information; Knowledge is the ability to apply information in special jobs and actions. Technology is the application of natural science in work, which is a kind of knowledge. —— 1964, Drucker, "Managing for Results"

Knowledge plays a vital role in our daily lives and work. It is a useful material obtained by our in-depth mining and comprehensive analysis of information, providing us with the basis for understanding the world and solving problems.

Finally understood: the relationship between data, information, knowledge and wisdom

For example, in the day-to-day operations of a company, finance personnel and managers need to have professional knowledge and experience. They need to use this expertise to analyze data such as sales, costs, cash flows and balance sheets to understand the company's profitability, capital flow, and assets and liabilities.

This process is the process of transforming information into knowledge. And this financial knowledge has been tested and proven to be correct in practice, so it has high credibility and practicality. By digging deep and synthetically analyzing known financial information, valuable conclusions and judgments can be drawn to support the company's decision-making and planning.

In short, knowledge is the sublimation of information and an important basis for our judgment and decision-making in real life. Through continuous learning and practice, we can accumulate more knowledge, improve our cognitive level and problem-solving skills, and make greater support for personal development.

Wisdom

We often say that a person has wisdom, which means that the person is able to make correct judgments and decisions in some aspects. Wisdom contains not only known knowledge and skills, but also insight and foresight of the unknown.

For example, in the daily operation of the company, financial personnel and managers use professional knowledge and experience to analyze the company's profitability, capital flow, assets, liabilities, etc., reveal the true state of the company's operation, and make effective judgments and predictions on the company's next stage of development direction according to the results of the analysis.

Albert Einstein, for example, is a classic example of turning knowledge into wisdom. He not only mastered the known knowledge and skills of physics, but also proposed the theory of relativity through deep insight and understanding, revealing the nature of time and space. His wisdom lies not only in the mastery of known knowledge, but also in the prediction and judgment of unknown things, which has made great contributions to human cognition and scientific and technological progress.

And the various mental models proposed by Charlie Munger in The Poor Charlie's Book are concrete examples of transforming knowledge into wisdom. He advocates interdisciplinary thinking, drawing on ideas and knowledge from different fields to form multiple perspectives to make deep understanding and effective decision-making on complex issues. This wisdom is fully reflected in the investment world, for example, Munger used principles in biology, physics and other fields to successfully predict the arrival of the Internet era and guide investors to great success in the wave of technology stocks.

Therefore, wisdom is based on known knowledge and experience, prediction and judgment of future trends, innovation and ability to solve complex problems. Wisdom is an advanced cognitive ability and decision-making ability, as well as the ability to see the essence through phenomena, which can provide guidance for human development and progress.

Finally understood: the relationship between data, information, knowledge and wisdom

Master the significance of the DIKW pyramid model

From data to information, to knowledge and wisdom, this is a process of continuous deepening and sublimation. The improvement of each level depends on the in-depth digging and extensive application of the next level. At the same time, this process also reflects the continuous deepening and expansion of human cognition and understanding of the external world.

At the same time, we must also realize that this hierarchical system is not a closed, static system. Instead, it is an open, dynamic system that may generate new data, information, knowledge and wisdom at every level, while also constantly iterating and updating. Therefore, we need to maintain a dynamic, evolving perspective in practice to adapt to this changing and evolving world.

In conclusion, the DIKW pyramid hierarchy reveals the intrinsic connection and evolution process between data, information, knowledge and wisdom, providing an important framework and tool for us to understand and process these concepts. In the future practice, we can collect, process, analyze and apply concepts at different levels according to this hierarchical system to improve our ability to apply data, information, knowledge and wisdom, and ultimately let us better survive and develop in this digital era.

If you are also interested in reading and writing with card notes, welcome to scan the QR code to join the ranks of reading and writing. In the future, I will continue to share more practical tips and dry goods for reading and writing.

- End -

-Author:Lei Mo-

——Focus on card note writing——

Read 100 books a year and organize 1 card pen every day

Read consistently and effectively, think deeply for the long term

Keep doing what is sure to win

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