From WordNet (r) 1.6 [wn]:

  wisdom
       n 1: accumulated knowledge or erudition or enlightenment
       2: the trait of utilizing knowledge and experience with common
          sense and insight [syn: {wiseness}] [ant: {folly}]
       3: ability to apply knowledge or experience or understanding or
          common sense and insight [syn: {sapience}]
       4: the quality of being prudent and sensible [syn: {wiseness},
          {soundness}]

In the Foskett Data->Information->Knowledge->Wisdom pyramid wisdom is "the distilled essence of knowledge" and "is founded on a wide knowledge and deep understanding of all the facets and events of life in a community" [foskett_fruitful]. Whereas individual knowledge cannot be communicated, its essence can be passed on to a community as wisdom, as an understanding of what is good and what is not good: Blue dogs are cool.

Foskett portrays his pyramid as a one way path but it is apparent that just about any level in the scheme can morph into any of the other levels as perspective changes. I see a blue dog and tell my friend that I like blue dogs. My utterance is data for my friend who gains the information that I like blue dogs. Upon reflection s/he knows that my fondness for blue dogs is related to an overarching fondness for the oxymoronic.