The words Data, Information and Knowledge are the key words in Knowledge Management, and these words are often use interchangeable with the given scenario.
Before going to know the difference among Data, Information and Knowledge it is important to know that the meaning of Data, Information and Knowledge.
What is Data?
Data is the raw material of information. It is the product of research and discovery. A single piece of data has no meaning unless the context is understood. Data needs to be transformed to information.
What is Information?
Information is a flow of messages. The patterns and relationship in the data is pointed out and discussed. The data is made informative and must be put into a context and linked like data.
What is Knowledge?
Knowledge is a multifaceted concept with multilayered meaning. The history of philosophy since the classical Greek period can be regarded as never ending search for the meaning of knowledge. [Resource]. The traditional epistemology adopts a definition of knowledge as "Justified True Belief". In theory of knowledge creation, knowledge is seen as a dynamic human process of justifying personal beliefs as part of an aspiration for the "truth". Machlup (1983) see information is a flow of messages of meanings which might add to, restructure of change knowledge.

Fig: relation among Data, Information and Knowledge
Source: The first annual symposium meaning making in organizations event 2006
Dretske (1981) offers more useful definitions. He said that, “Information is that commodity capable of yielding knowledge, and what information a signal carries is what we can learn from it. Knowledge is identified with information-produced (or sustained) belief, but the information a person receives is relative to what he or she already knows about the possibilities at the source”.
(Source: http://www.cyberartsweb.org/cpace/ht/thonglipfei/data_info.html)

Some web definitions of Data, Information and Knowledge:
(Prof. Elsa Barber n.d) Data is the representation of concepts or other entities, fixed in or on a medium in a form suitable for communication, interpretation, or processing by human beings or by automated systems (Wellisch, 1996). Information is (1) a message used by a sender to represent one or more concepts within a communication process, intended to increase knowledge in recipients. (2) A message recorded in the text of a document. Knowledge is knowing, familiarity gained by experience; person's range of information; a theoretical or practical understanding of; the sum of what is known.
(Prof. Charles Oppenheim, Loughborough University, UK n.d) Data are raw material of information; typically numeric. Information is data which is collected together with commentary, context and analysis so as to be meaningful to others. Knowledge is a combination of information and a person's experience, intuition and expertise.
Bellow table shows various definitions of Data, Information and Knowledge from various authors.

By studying all these concepts in my view data, information, and knowledge is often represented as pyramid. With data at the base, data is converted to information and information converted to knowledge. For example when I am doing my under graduation in my college we have one separate department called student desk. The main duties of this department are to solve the problems of students. So the department collets the data form students every week regarding the maintaing the campus, quality of food providing in the hostel, facilities in library and laboratory and how lecturer’s helps in their studies like all. Students fill the form given by the student desk. The date taken from the student has no meaning unless the student desk arranges it in some format and add context to that data it become information. They send that information to the principal. He made decision based on that information provided by the student desk regarding the improving facilities in college and to solve the problems of the students and having that knowledge he made decisions.
In seminar all are discussed that information will come from data and information became knowledge i.e. the transformation of data, information and knowledge is one way. But I didn’t agree that because in my view data, information and knowledge related and each other and can be transfer to each other. Example in our college the data given by the students to the student desk is knowledge to the students and that is data for the student desk. Information they give to the principal is knowledge to the student desk. So the data, information, and knowledge are interchangeable. Data may be information for some one or it may be knowledge for some one and vice versa.
Reference:
http://www.cyberartsweb.org/cpace/ht/thonglipfei/data_info.html
http://csdl2.computer.org/comp/proceedings/hicss/2002/1435/04/14350104b.pdf
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