In a broad sense, information is structured, processed and organised information. It gives context to data and allows decision making about what to do next. For instance, a single customer’s sale at a fast food restaurant is information it becomes information the restaurant can use to understand which menu item is most likely to be profitable.
But knowledge management processes incorporate more than just information. They also involve knowledge about how to store that information so it is available in the future, as well as knowledge about how to access that information in an appropriate way. Discrete data processing, for example, involves storing the information in simple forms, usually sheets of paper, that can be retrieved in an appropriate situation. The advantage of using this type of knowledge management system is that users can build on the information they already have. This process of building upon the existing knowledge does not necessarily involve the creation of new knowledge, since that would be a circular process.
An information theory system may represent information about a situation in a way that allows users to make knowledge decisions. The information theory model has a better solution for problems than models based on experience, because it does not involve any causal inputs. We can make information systems with the help of a computer that implement the knowledge management concept: the computer can be a knowledge manager, using the information theory principle and the principles of design. Once the principles are understood, we can build very complex information systems with high level of concreteness and comprehensibility, using the knowledge manager as the central processing unit.