In the early days of computing, we talked about data processing, then we got information systems and now companies are seeking knowledge management and knowledge management systems. So what's the difference?
A piece of data is a number or letter or combination. An example might be the number 4, which is a piece of data. If we add the fact that it stands for a child's age and it is actually 4 years, then we now have information which has meaning and therefore more value. However, we know things about 4 year old children, how tall they are, what they can do and so on. This is knowledge. As we move from data to information to knowledge, we add context and, therefore, value. Computers naturally handle data which is ultimately reducible to binary representation. Context is much more difficult to represent on computers, and is often incorporated through the structure of information systems rather than the content.