The process of gaining a true understanding of anything can be visualized as a continuum.
Data: Data is simply a single piece of evidence. For example “Men” or “47 years old” are pieces of data. What you can do with them is unknown.
Information: Information creates a relationship between pieces of data. For example “47-year-old Men” gives two data elements some more meaning.
Knowledge: Knowledge gives us context and tells us how we can interpret information. For example, “At 47 years old, men reach their peak spending year” is a statement that has turned Data into Knowledge.
Wisdom: Wisdom occupies the endpoint on the continuum, and is the ability to apply knowledge to new situations. For example “If a man reaches his peak spending at age 47, 47-year-old men would be a good demographic to buy a luxury item such as a new motorcycle.”
When dealing with business situations, it is important that when you collect and organize what you think you know, you use the understanding continuum to challenge your thinking and give relative weight to each element.
How can you apply the understanding continuum to a current business situation?
