Shared knowledge is a consensus of like minded ideas that can form into a single idea or tidbit of knowledge, which generally represents the pool of individual knowledge.  Because we don't fully understand the world, knowledge is always abstract and should be parenthesized: “knowledge”.  In fact the whole english language should be parenthesized since it is only an abstraction of our consciousness reasoning.   We create understanding, so reasoning can follow a model such as this because it is created by the consciousness.  

    This is a concrete model and cannot represent the complexity and abstraction of learning or outcomes of that learning.   This model would not apply to any subjective learning; since subjective, intuitive learning does not follow a hierarchical path, but is multidimensional and is better represented by an abstract, multidimensional, even 3d,  model [1].

    The pyramid could be seen as a hierarchical reasoning model: an outline of how reasoning can come from abstract to concrete.

    So this knowledge model works for a conscious created knowledge such as reading information in a book (which is still abstract knowledge) and using reasoning to gain knowledge on that task; but how that knowledge is applied, or how it links to other seemingly unrelated knowledge cannot be represented by this model.

References

[1] Wikipedia: The free encyclopedia.(Retrieved 2013, May 12). DIKW Pyramid  [Online].  Available:http://en.wikipedia.org/wiki/DIKW_Pyramid