Data grabs a lot of headlines today fuelled, by the exponential growth in its availability & relative ease in getting access to it. "It's the new oil" say some, others proclaim "In data we trust" and many more speak constantly of 'big data' as if, on its own, it has the power to solve the key issues of the day.

But, is ‘data’ really the answer?

In its raw state data is not so useful & has no particular significance It's what you do with it, how you harness its potential and extract its benefits, that really counts. And that's what gets us excited.

Discussions about data often focus on how to take it from its raw, unrefined state to wisdom and there's various models used to describe this process.

However, the one we like best is a simple five stage box (see below). The diagram neatly illustrates how it's not data per se which has value but what you do with it.

🔵 In this diagram 'Data' is represented by a series of random dots that could mean something - or nothing.

ℹ Next is 'Information', which is where meaning or relationship is applied to the raw material. This is indicated by applying different colours to the dots.

📖 'Knowledge' is gained when we are able to memorise the information, for i.e. standard multiplication tables or sunrise & sunset times in a given month. As we gain knowledge we begin to make sense of things and draw connections between different pieces of information.

💡 However, it's at the 'Insight' level where data becomes seriously useful. Insight is the ability to synthesise knowledge in order obtain a deep understanding of a problem.💡 However, it's at the 'Insight' level where data becomes seriously useful. Insight is the ability to synthesise knowledge in order obtain a deep understanding of a problem.

🦉 With insight comes the prospect of 'Wisdom' - the ability to use insight to facilitate informed decision making.

In a business sense we view wisdom as the ability to transform data into action. But not action for action's sake. It has to build on information, knowledge & insight to ensure a positive return on investment.