What Is the DIKW Pyramid – Why Is It Important and Where Do You Sit?

 

Data

Information

Knowledge

Wisdom

 

“The DIKW pyramid is a framework for transforming raw data into actionable wisdom through four progressive stages: 

 

Data, the raw facts and figures; 

Information, which adds context to data; 

Knowledge, the understanding of patterns and insights within information; 

and Wisdom, the application of knowledge to make sound judgments and anticipate future outcomes. 

 

This hierarchical model is crucial for data-driven decision-making, illustrating how to move from isolated data points to strategic foresight and effective action.” – Google summary.

 

For businesspeople, another way to express this is:

 

D = What (what needs to be done – executing a task)

I = How (how to do it)

K = When/Where (when and/or where to do it)

W = Why (why it needs to be done)

 

Example: DIKW for Demos:

 

Data: I can click through our software.

Information: I understand what our software’s dashboards, reports, workflows, and their outputs communicate.

Knowledge: I understand and can communicate the associated value.

Wisdom: I know what specific capabilities will resonate with our target job titles and markets.

Additional Wisdom: I know what to show and what to hold back, depending on the situation.

 

DIKW for Great Demo! Illustrations:

 

Data: I can run our software.

Information: I am familiar with our software’s dashboards, reports, workflows, and their outputs

Knowledge: I know how to select and present good Illustrations for our key prospect job titles.

Wisdom: I make presenting Illustrations an engaging, bidirectional conversation.

Additional Wisdom: I’ve built a library of high-probability Situation Slides and corresponding Illustrations for the whole team to use.

 

Example: DIKW for RFP Responses:

 

Data: I’ve got a lot of RFPs to answer.

Information: I have the answers for (most) of the questions.

Knowledge: I know how to draft the responses.

Wisdom: I’m not answering this RFP because it was written for a competitor.

Additional Wisdom: I know how to “add rows” to bias RFPs in our favor; I know how and when to “seed” RFP templates to our prospects, customers, and third parties.

 

If you were to draft DIKW progressions for your own practices, what would they look like – and where are you operating today?

And here are three terrific resources to help you move up the pyramid!

 

Suspending Disbelief – fast, easy to consume, high value short stories

https://tinyurl.com/yc7rsrmy 

 

Doing Discovery – the foundation for effective sales (and buying)

https://www.amazon.com/Doing-Discovery-Important-Enablement-Processes/dp/B0B8RJK4C2/

 

Great Demo! Third Edition – validated best practices for stunningly successful demos

https://www.amazon.com/dp/B0C9SNKC2Y/