System Development and Project Management 1

Wisdom Management: A Comparison and Contrast with Knowledge Management

Clarence Howard

TUI University

System Development and Project Management 2

Abstract

Organizations today have become more and more dependent upon Knowledge and

Information. In an organizational context, data represents a collection of facts or values and

relationships between data which have the capacity to represent information. The data and

information associated with an organization, its markets, its customers and its competition all

create patterns that enable an organization to obtain a reliable idea of predictability for the future

marketplace. The relationship between knowledge and information needs to be managed to

create value to the organization. Knowledge Management relates directly to this as it enables

organizations to deal with situations and effectively provide vision for the future. So where does

Wisdom Management fit it? In the following paper I will contrast this new and emerging area of

thought with Knowledge Management and identify its challenges and solutions that can both

benefit and harm the changing business marketplace and help an organization maintain a

competitive edge.

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Wisdom Management: A Comparison and Contrast with Knowledge Management

Wisdom Management, What is it, and how can it benefit or harm an organization? To

answer these questions we must first define what Knowledge Management is and its effects in

the marketplace. Wikipedia defines Knowledge Management as, a range of strategies and

practices used in an organization to identify, create, represent, distribute and enable adoptions of

insights and experiences either embodied in individuals or embedded in organizational business

processes or practices. Knowledge Management typically focuses on organizational objectives

such as improved performance, competitive advantage, innovation and the sharing of lessons

learned through integration and continuous improvement of the organization (Wikipedia, 2010).

In order to fully understand the relationship of Knowledge Management and Wisdom

Management let take a look at “Wisdom” from a business process standpoint. Wisdom is

considered to be the highest form of Knowledge. But what do we mean by Wisdom? Why is it

important to Information and Knowledge? And how can we relate it to the business processes of

Data, Information and Knowledge? Wisdom in a sense is the ability of knowing why things

should or should not be done. Whenever one learns a coordinated process for example, what is

to be done and how that is when start to gain Wisdom. Asking Why for example, Why do we use

this process and not another, why do we do it in this certain logical sequence and not another,

allows us to go further in questioning the very structure of Knowledge itself. It is important to

recognize that continuous change is going on is society and the marketplace and that our increase

in knowledge needs to be effective as possible.

According to an article by K. Sridevi, organizations can be informed and knowledgeable

but they must continue to become wiser. Management systems have witnessed a cumulative

progression from data processing, through information technology, to the current knowledge

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management. The next logical step is Wisdom. Wisdom should become like knowledge and

information, a manageable resource for the organizational process of Efficiency, Effectiveness,

Explicability and Ethics. Efficiency in doing things right, Effectiveness in doing the right things,

Explicability about being able to understand and explain one’s actions and Ethics about assuming

responsibility for one actions. In the end it’s all about deciding, doing and acting. Many

governments, religious and philosophical ethics say that wisdom denotes an “enlightened

perspective” defined in a Utilitarian way as an effective support for the long-term common good.

According to Sridevi, wisdom then is often meant as the ability to make choices that can gain

approval in long term examination by many people. Wisdom then consists of making a decision

and plan for the future based on the best use of available knowledge (Sridevi, 2009).

Therefore, how can we relate “Wisdom Management” to the processes of Data,

Information and Knowledge? In the article “The Data, Information, Knowledge, Wisdom Chain:

The Metaphorical Link,” author Jonathan Hey defines how the three areas become part of a

hierarchy or chain. He says that, when we gain information from data we make sense out of it.

It is commonly assumed that data itself inherently has no meaning but by processing data in a

meaningful way it becomes Information. Hey goes on to say that knowledge is created by

accumulating information and thus information is a necessary medium or material for eliciting

knowledge and therefore wisdom. Hey provides two views of the DIKW hierarchy one which

depicts it as a linear chain and the second as a “Knowledge Pyramid” (Hey, 2004).

The term DIKW is defined by Wikipedia as, The “DIKW Hierarchy” also known as the

“Wisdom Hierarchy” referring to the model of representing a structural and/or functional

relationship between data, information, knowledge and wisdom (Wikipedia, 2010). Not all

versions of the DIKW model reference the four components in the same manner for example

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let’s look at the different concepts below by Hey.

Figure 1: One view of the DIKW hierarchy (Clark, 2004)

Figure 2: The Knowledge Pyramid by Zeleny & Ackoff

Wikipedia citing Authors Anthony Debone, Ester Horne and Scott Cronenweth in their

book, Information Science: An Integrated View, has describes the model in a more two

dimensional chart or as a graphical flow diagram with loops and control relationships that move

throughout the process and bring into light some of the same concepts cited by the Sridevi in her

article on Wisdom Management.

WISDOM

KNOWLEDGE

INFORMATION

DATA

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The following is a depiction of the model cited by Wikipedia.

A flow diagram of the DIKW hierarchy from Wikipedia, the free encyclopedia cited from

Information Science: An Integrated View.

So now that I have taken you through all this process, it safe to say that Wisdom

Management” is very much linked to “Knowledge Management, “ and that those processes that

make up the Information Management Technology framework are limited by the computer

systems that manage the Data, Information and Knowledge put into them. Wisdom therefore

takes the ability of an individual to judge or discern between what’s right and wrong, good or

bad. Wisdom and more specifically Wisdom Management is a uniquely human states one that

will require managers and organizations to be forthcoming and courageous in taking the right

actions. Managers utilizing the inter-predictability of both Knowledge Management and

Wisdom Management will need to be forward looking in setting goals for their organizations to

continue to assist their clients in providing those service that are required in order for them grow

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and perform and reach their full potential. No matter what we can see that Knowledge and

Wisdom Management will be key in creating organizational success. Wisdom has, is and will

continue to be a valuable resource for organizations to utilize to promote concepts and processes

that promote solutions and facilitate success. By sharing knowledge one gains wisdom and skill,

therefore organizations can accrue success by utilizing the wisdom and skill of its workforce.

In contrast if the same organization ignores wisdom and skill, it is forcing itself to forever

be weakened and not productive. This is the true comparison of Knowledge Management and

Wisdom Management. Knowledge management practitioners therefore can either allow Wisdom

Managements effectiveness, that is the skills of its workforce i.e. those individuals and groups to

manage the organizations business situations effectively and play a vital role in management

decisions or utilize the managed knowledge of its processes i.e. Knowledge Management to

address these same situations. Which approach would you perceive to be more effective for the

organization?

.

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References

Wikipedia, the free encyclopedia, (2010, July). Define Knowledge Management

Retrieved from http://en.wikipedia.org/wiki/Knowlegde_management

Sridevi, K. (2009, April 17). Wisdom Management

Retrieved from http://www.indianamba.com/Occasional_Papers?OP216/op216

Hey, J. (2004, December). The Data, Knowledge, Wisdom Chain: The Metaphorical Link

Retrieved from http://www.best.berkeley.edu/hey03/files/reports/IS290_finalpaper_Hey

Wikipedia, the free encyclopedia, (2010, July). Define DIKW

Retrieved from http://en.wikipedia.org/wiki/DIKW

Debons, Horne & Croneweth, (1998). Information Science: An Integrated View

Retrieved from Boston: G.K. Hall ISB: 0816118574