--- title: "Knowledge management and KM triangle" subject: "Information System" chapter: 4 key: "semester_8/information_system:knowledge-management-hierarchy" source: https://www.bctengineer.com/q/semester_8/information_system/knowledge-management-hierarchy site: BCT Engineering --- # Knowledge management and KM triangle Information System · Chapter 4: Decision support and Intelligent systems - Asked in: 2073 Bhadra, 5+5 marks - Video: [Knowledge Management - Explained in 10 Minutes](https://www.youtube.com/watch?v=-XPbfsl3WGo) — Productivity Guy - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_8/information_system/knowledge-management-hierarchy - Whole chapter: https://www.bctengineer.com/md/semester_8/information_system/chapter-4 ## Question What is knowledge management (KM)? Illustrate KM significance with data-knowledge hierarchy triangle and associated components. ## Short answer Knowledge management systematically identifies, captures, shares and applies knowledge to boost performance and innovation. The data–information–knowledge–wisdom hierarchy shows raw data at the base transforming into actionable knowledge and wise judgement; lower levels are high-volume, low-value, while upper levels add context and human insight. ## Answer #### Knowledge management **Knowledge Management (KM)** is the systematic process of identifying, creating, capturing, organising, sharing and applying the knowledge of an organization - in documents, databases and the minds of its people - to improve performance, innovation and decision making. Types of knowledge: - **Explicit** - documented (manuals, reports, databases). - **Tacit** - in people's heads (skills, experience, intuition). KM cycle: create -> capture -> store -> share -> apply -> update. #### Significance - Preserves expertise when staff leave. - Avoids repeating mistakes and duplicate effort. - Speeds learning, problem solving and innovation. - Improves decisions, service and productivity. - Creates competitive advantage. #### Data-Information-Knowledge hierarchy (KM triangle) ```text /\ / \ Wisdom /----\ /Knowl.\ Knowledge /--------\ /Information\ /------------\ / Data \ ---------------- ``` | Level | Meaning | Example | |---|---|---| | **Data** | Raw, unprocessed facts | 45, 52, 48 (daily sales numbers) | | **Information** | Data processed and given meaning | Weekly sales rose 15 percent | | **Knowledge** | Information combined with experience, context and rules; used to act | Sales rise before Dashain, so stock up early | | **Wisdom** | Judgement to apply knowledge for the best long-term action | Plan a balanced strategy for all festival seasons | Moving up the triangle, volume decreases but value, context, human involvement and usefulness increase. Associated components: data and information systems at the base (TPS, databases, data warehouse), knowledge repositories, expert directories and collaboration tools in the middle, and decision support at the top. People, processes, technology and culture support the KM system. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Which is an example of tacit knowledge? A. A user manual B. A database of orders C. An employee's skills and intuition gained from experience D. A stored report Answer: C. Tacit knowledge is in people's heads (skills, experience, intuition); manuals, reports and databases are explicit. (Key point: Explicit vs tacit) 2. Weekly sales rose 15 percent, derived from daily sales numbers 45, 52, 48 and so on. At which level is 'Weekly sales rose 15 percent'? A. Data B. Information C. Knowledge D. Wisdom Answer: B. Information is data processed and given meaning; the raw daily numbers are data. (Key point: Hierarchy levels) 3. 'Sales rise before Dashain, so stock up early' is at which level, and why? A. Knowledge, because information is combined with experience and context to act B. Data, because it is a fact C. Information, because it is a summary D. Wisdom, because it is a long-term balanced strategy Answer: A. Knowledge combines information with experience, context and rules for action; wisdom is the judgement for the best long-term strategy. (Key point: Knowledge level) 4. Moving up the data-to-wisdom triangle, what happens? A. Volume increases but value falls B. Volume decreases while value, context and human involvement increase C. Volume and value both increase D. Human involvement decreases Answer: B. Going up, there is less volume but more value, context, human involvement and usefulness. (Key point: Moving up the triangle) ## Related in Information System - [Knowledge management vs expert systems](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Akm-vs-expert-systems) — Information System, chapter 4 - [Data mining and business knowledge](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Adata-mining-business-knowledge) — Information System, chapter 4 - [Cloud types and data management](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Atypes-cloud-data-management) — Information System, chapter 8 - [Change management, CMMI and CMDB](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Achange-management-cmmi-cmdb) — Information System, chapter 6 ## Related in other subjects - [Project management body of knowledge](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Adefine-pmbok) — ICT Project Management, chapter 2 - [Project management knowledge areas](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Apm-knowledge-areas) — ICT Project Management, chapter 2 - [GSM NSS components and frame hierarchy](https://www.bctengineer.com/question.md?key=semester_7%2Fwireless_communication%3Agsm-nss-frame-hierarchy) — Wireless Communication, chapter 8 - [Significance of components; phasor voltages](https://www.bctengineer.com/question.md?key=semester_5%2Fpower_system_analysis_ii%3Asymmetrical-components-significance-voltages) — Power System Analysis II, chapter 4