Talk to anyone who invests in the stock market. He (or she) will tell you: success takes a lot more than just knowing the facts. These days, all the information you’re likely to use on a daily – or even monthly – basis is at your fingertips, just a search or a click away. Want to know the price of gold, who won the World Series in 1918, stock trends for Apple versus IBM, the price of mangoes in Guatemala – it’s all right there, and if you can’t find it, the odds are really good you can connect with someone who can.
Getting the facts just isn’t the issue any more.
The issue is knowledge.
Knowledge is cognition, thought, connection. It involves seeing the connections between previously (apparently) disparate, unrelated pieces of information. Success, in turn – whether social or in the business realm – is about leveraging those connections in a profitable way. In other words,
The facts: Music can be digitized. We can make very small hard drives. We can store music on them. We can use hard drives to play music on headphones.
Knowledge: those pieces fit together to make a portable music player.
Success: Steve Jobs says “hey, I bet we can sell these things”…
Netflix’s founders knew the facts – Blockbuster was charging too much for rentals, people are working longer hours, the internet was widespread enough to support the movie habits of a generation used to ipods and online networking – but putting them together – seeing the direction and the trends – that’s knowledge. They leveraged it. As of now, Netflix is trading at 30.18…
If you plan to invest in Real Estate, knowing what the prices have been, and what they are today isn’t enough. You have to take a step back and see the trends. You have to look at social pressures, jobs, the price of oil (affecting transportation costs), location, weather – on and on -
you can’t get effective leverage on a situation, however isolated it seems, until you understand the big picture.
Knowledge is the new Information
Which brings me back to the title of this post. Facts used to be harder to collect, and often the collection of facts forced one to examine and understand their connections. This is no longer the case.
When I was young, my local library had a card catalog. At thirteen I did a research project on the Great Depression. While I was reading, I had to take notes on related topics – dates, people, events – so that I could do other, more effective, searches in the card catalog. In other words, to save myself time and effort - and to research effectively – I had to understand what I was reading, while I was reading it.
In highschoool, I did another project, on the massacres in Tiannamen Square. My highschool had just begun using an internet-based card catalog. New to the internet, I “researched” by searching for keywords. I ended with stacks of unrelated material, and no idea what I should read first. I almost didn’t finish the project.
Last year, I did research on the Cold War and Terrorism. This time, I found most of my information online, in online databases and journals. I didn’t just find it, I read it online. I did read some books in hard copy, but often scanned my reading so I would have it later, no matter where I was. I didn’t complete the project (passed it along to the next research assistant), but wound up amassing thousands of pages, hundreds of articles, multiple bibliographies – and I’m still not sure that the multiplicity of information actually added to my understanding. All the information simply meant I had access to a much larger picture. More information, more timelines, more bibliographies, more, more more. However,
Reading, thinking, and writing helped me – just like in 7th grade.
And the implications are ….
So, once upon a time, knowing the facts implied knowledge of the situation – it implied an understanding of connections. Now, knowing the facts simply implies you’re good at using Google.
Furthermore, the average US citizen today has access to an exponentially larger number of facts (and/or rumors) than s/he did ten or twenty or sixty years ago. It takes time to wade through that many facts. It can be difficult to focus (raise your hand if you’ve ever gotten lost on Facebook, YouTube, MySpace, Amazon.com, the NYT, Wired, Wikipedia, Google maps, the IHT, the BBC, Flickr, Twitter, The Onion… I can go on and on). Our hyperlinked world is increasingly searchable. (Check out the Liquid Information project, read articles about it here and here)…
So what. Big deal. There’s more information, there’s more people looking at information, disinformation is harder and harder to pull off … can’t be a bad thing. … right?
We’re back at knowledge versus facts again. Knowledge – new knowledge, and useful or correct knowledge, is about making connections previously unseen, then leveraging them. This means you have to know what – out of all the chaos of mostly-true facts – is important. You have to know how to choose the most important data points.
The issue isn’t about which facts to keep, any more – it’s how to know which ones to ignore.
We have to train our brains to act like our eyes. Our eyes detect motion much better than stillness, largely because trees don’t jump out at us, while tigers (and the occasional snake or angry neighbor) do – and did. Knowing what was important, fast, was a survival trait.
I suspect it will soon be the same with data, if it isn’t already.
Having information just isn’t enough any more. It just means you can do a keyword search. It just means you can spell close enough to correctly to get google to spellcheck for you. It means you can use Wikipedia.
Having facts just doesn’t imply knowledge any more. It doesn’t imply understanding. It doesn’t imply you know which data points to ignore.
Ultimately, that’s the bottom line. Knowing what to ignore is as important now as knowing facts.
Information just doesn’t cut it.