The Data-Information-Knowledge-Wisdom (DIKW) Pyramid

The DIKW Pyramid shows how raw data transforms into meaningful understanding. "Data" are simple facts or numbers without context. When we interpret data, we create "information"—organized and relevant details. "Knowledge" is gained by analyzing information to recognize patterns or insights, enabling informed decisions. "Wisdom" is the applied understanding and judgment that guides wise actions. Essentially, the pyramid illustrates a progression from basic facts to deep, contextual insight and prudent decision-making.