Harnessing Knowledge Management requires recognizing it's place within a hierarchy: data, information, knowledge, judgement and wisdom.
Data is a collection of specific facts. There are several types of data. Some data points relate to what happened at a particular instance. Transactions are an example of these. Other data elements are valid for a period of time. These would include addresses, passwords and specific procedures. A third class of data is relatively independent of time. This includes the constants such as speed of light in a vacuum or the specific gravity of a particular element in it's solid form at STP, the formulas for various chemicals and ratios such as pi.
Information is derived from data, but is much more than the sum of the data elements. It is what you may get when you apply analytical tools (including data mining) to a set of data. The simplest and most universal piece of information is the answer to the question, 'how many data points do we have?' If the data points include numeric values, then the derivable information can include averages, minimums, maximums and standard deviations. When data is extensive (usually in time or geography) then information can relate to trends, patterns and anomalies.
Knowledge is the relation of information to the broader 'world' around the 'territory' from which the underlying data was derived. The term 'knowledge' is often used very loosely in today's society. And this is at the root of much confusion.
'What do you know about the Jones account?' could be a request for facts. 'Bill Jones is our primary contact' might be such a data element. But there probably are many data elements related to the Jones account and the questioner might want to 'learn about the forest, rather than getting lost in the trees.' The question may be a request for Information, such as 'The Jones account has doubled in size during each of the past six years.'
By my definition, however, the original question requests an answer that transcends the Jones account. 'The Jones account represents 50% of our sales this Quarter and 65% of our Accounts Receivable.' 'We are in deep trouble because Jones has just filed for bankruptcy.' 'We will survive because our Net Margin on the Jones account was 35% and we have Factored all their Receivables for 92 cents on the dollar.'
Judgement was recognizing (in advance) the exposure to the Jones account and the likelihood of them developing serious problems. Judgement entails a probabilistic assessment (which may or may not be numerical) of future events and the non-linear thinking needed to devise and assess possible ways to capitalize on opportunities and minimize the impact of problems.
Wisdom was having the courage to act upon that Judgement by Factoring the Receivables, hiring additional sales people to open up new markets and selling Bonds to finance the planned transition without laying off employees -- and in doing so in ways that would not exacerbate the situation.
Hence, for Knowledge to be of use, Judgement and Wisdom are also needed.
Managing tasks and processes involves understanding the objectives, devising the procedures to be followed, communicating those procedures to others, ensuring that the procedures are followed and verifying that the procedures are producing the desired results without generating serious negative consequences. The ISO9000 principle of 'writing down how things are done and then doing things the way it is written' is central to acquiring data in a manageable form.
At the other end of the hierarchy, leading people by example and through various means of communication is central to helping them develop wisdom -- as is providing 'enough' opportunities for them to make judgement decisions, to sometimes make the wrong ones, and to be allowed to continue.
Knowledge Management is very different. It is, in a sense, composed of three components. The first is the classical management of data. The second is the maintenance of appropriate information extraction tools. The third is knowing who has the relevant background to recognize the significance of the information available and ensuring that they are provided with access to the data and the analytical tools. It's also necessary to provide a context in which they will choose to convey to you the knowledge which they derive.
