Data, information, and knowledge

Data are facts of the world. For example, financial transactions, age, temperature, number of steps from my house to my office, are simply numbers. The information appears when we work with those numbers and we can find value and meaning. The information can help us to make informed decisions.

We can talk about knowledge when the data and the information turn into a set of rules to assist the decisions. In fact, we can't store knowledge because it implies theoretical or practical understanding of a subject. However, using predictive analytics, we can simulate an intelligent behavior and provide a good approximation. An example of how to turn data into knowledge is shown in the following figure: