The DIKW Pyramid represents the relationships between data, information, knowledge, and wisdom. Each building block is a step towards a higher level - first comes data, then is information, next is knowledge, and finally comes wisdom. Each step answers different questions about the initial data and adds value to it. The more we enrich our data with meaning and context, the more knowledge and insights we get out of it so we can take better, informed, and data-based decisions.
DIKW Model is an essential part of ITIL Knowledge Management under the ITIL Service Transition. It is the graphical representation of how knowledge can be organized within the organization.