Business knowledge

Sometimes the persons relationships with others or their location need to change as well. Other changes are dictated by the aging process itself, such as the need to change diet because of disease, to wear glasses or a hearing aid, or to use artificial aids to move around.

Why Knowledge Is Power Even In Your Business

Business knowledge

One of the major goals of the analyst when starting any new analysis and design activities, regardless of whether the user area is familiar or not, is the acquisition of information about the current state of the firm environment, the user, what the firm does, and the place of the user and the user’s organization within the body politic of the firm.

One of the major goals facing the analyst when starting any new analysis and design activities, regardless of whether the user area is familiar or not, is the acquisition of information about the current state of the firm environment, what the firm does, the user, and the place of the user and the user’s organization within the body politic of the firm.

The term "firm" will be used to identify the organization as a whole. In some cases the term will represent a discrete business unit or division which can be examined as if it were a freestanding firm. This information, necessary for any analyst, is usually termed "background information." It can be obtained from experience in the firm, from the user, from user documentation, from a "briefing" by the analyst’s manager or other knowledgeable source, or from a variety of similar sources.

Whatever it is called and however it is obtained, in reality this knowledge of the firm and user’s role within that firm is called "business knowledge." Business knowledge is defined as a thorough understanding of the general business functions and the specific areas under analysis. The accuracy and completeness of this knowledge are crucial to the development of the foundation upon which the analyst can build an understanding of the user and the user’s problems and requirements, and design new and more efficient methods of accomplishing the primary tasks of that user.

The task of gathering business knowledge includes acquiring a detailed understanding of the firm’s functions, the processes and tasks which are employed to accomplish those functions, and the relationship of those functions, processes, and tasks to each of the functions, processes, and tasks performed throughout the firm.

The development of the analyst’s business knowledge, regardless of the level at which the analysis is being performed, begins with the identification and description of each of the functions of the firm and of the user’s function, or role, within the firm. This analysis, called functional analysis, usually includes a firmwide organizational chart and narrative descriptions of the functions and subfunctions which make up the business.

Generally the information gathered is collected into a set of documents which become the first stage of the analysis process. The collection of documents resulting from this process may be called a general business description document, a client functional description document, or another similar title.

The development of business knowledge is an integral part of the analytical process. In fact, the acquisition, documentation, validation, and evaluation of business knowledge is the core of analysis. By its very definition, business knowledge is knowledge about the business, what it is, what it does, why and how it does what it does, and how those activities can be performed more efficiently.

To use an analogy, it is possible to understand how an automobile works by studying its component parts: the engine, the transmission, the braking system, the steering mechanism, or the exhaust system. However to gain a better understanding of how an automobile works, it is more meaningful to understand how the various parts interact with each other; e.g., how the exhaust system ventilates the engine and how power is transmitted to the drive wheels by the transmission.

At a higher level, it is more meaningful to understand why each component is necessary and what the engineering principles are behind the internal combustion engine, the principles of physics behind the gearing in the transmission, and the chemical principles behind both the internal combustion engine and the exhaust system.

At a lower level, one can examine how the parts are put together and how the various subassemblies of the engine, the pistons, the carburetor, the manifold, the cooling system, the lubrication system, and the fuel feed mechanisms work.

Each approach is valid, and depending upon what you are trying to do, it may be possible to ignore all the other considerations and concentrate on the part which is faulty. For instance, one does not need to be an automotive engineer to change a tire or fill the fuel tank. However, if you were going to write a column on car repair or a book on automotive design, you would obviously need a greater depth of knowledge.

To use an earlier analogy, that of the medical profession, the surgeon specialist needs a deep background in anatomy, physiology, immunology, pharmacology, and related topics. The family doctor, while needing some background in these subjects, has less need in these areas but needs depth in diagnostic procedures and minor surgery. The nurse has less need than the family doctor for these subjects, but more need than the paramedic, and the least knowledge is needed by the first aid technician.

Knowledge keeps your business relevant

A man giving your business a thumbs up

10 Incredible Importance of Knowledge In Your Business

What was the newest “in-thing” for your industry when you started your business, is most likely becoming a norm or outdated by now. An entire industry can be modified massively in just the shortest space of time.

As a forward-thinking business owner, you can’t afford to be ignorant of the newest trends and updates in your industry if you want to stay relevant. Your relevance in your chosen industry is totally dependent on just how much you know about the dynamics of that industry as a whole, the recent “know-how” or developments and how you can apply that knowledge to building a successful business.

Some say ignorance is bliss…what you don’t know can’t hurt you, right? Wrong. Definitely not in business. What you don’t know might become what spells doom for your business. Lack of knowledge will make you fall behind.

THE IMPORTANCE OF BUSINESS ESSENTIALS

For professionals seeking to advance their career, the value of business skills can’t be overstated. In addition to hard skills, like financial accounting and an understanding of economics, you also need soft skills, like emotional intelligence and leadership, as your organization or business grows.

No matter your industry, an understanding of essential business concepts can help you better understand your organization’s performance, and equip you with the tools needed to spearhead initiatives and drive strategic decision-making.

Do you want to take your career to the next level? Download our free Guide to Advancing Your Career with Essential Business Skills to learn how enhancing your business knowledge can help you make an impact on your organization and be competitive in the job market.

About the Author

Matt Gavin is a member of the marketing team at Harvard Business School Online. Prior to returning to his home state of Massachusetts and joining HBS Online, he lived in North Carolina, where he held roles in news and content marketing. He has a background in video production and previously worked on several documentary films for Boston’s PBS station, WGBH. In his spare time, he enjoys running, exploring New England, and spending time with his family.

Sources:

http://www.martymodell.com/pgsa2/pgsa11.html
https://explicitsuccess.com/importance-of-business-knowledge/
https://online.hbs.edu/blog/post/business-skills-every-professional-needs
Business knowledge

In many firms these rules are well codified and documented and in some cases they are rigidly enforced. In today�s rapidly changing economic and competitive environment, companies that cannot react quickly are at a distinct business disadvantage. Highly codified and rigidly enforced rules with many levels of review and approval limit the flexibility of a firm, and its capability to react quickly and decisively to new events and conditions.

Industry Knowledge

Industry Knowledge Competency Levels

1. Networking

Networking involves interaction with other industry stakeholders in person or online. It is one sure way to share and acquire knowledge of what is happening in the industry. Some industry trends start developing in the grapevine before going viral or noticed by the public media. Players with good networking skills can acquire information earlier and take positions before it is known by everyone.

Networking is usually achieved by attending business functions, such as symposiums, trade shows, and analyst briefings. Joining professional membership associations and attending their events is also another great way to gain industry knowledge.

It is important to develop social skills by engaging in professional discussions in a relaxed environment. Networking also extends to interactions on social media platforms focusing on topics of interest.

2. Reading industry publications

Industry players are encouraged to subscribe to relevant industry publications and setting aside time to go through them, notwithstanding their busy schedules. Industry publications are more informative and focus on specific industries and professionals. It means they can provide granular details absent in consumer-focused publications.

3. Mentorship

Mentorship involves securing the tutelage of a reputable professional in the industry. It can be viewed as an extension of networking but with a focus on learning from one individual with advanced industry knowledge.

An arrangement can be made which satisfies both parties, the mentee receiving industry knowledge and skills in exchange for any help the mentor may deem necessary. Mentors can provide guidance and first-hand knowledge of the industry, which is invaluable to the mentee.

4. Online research

It is important to stay abreast with current industry activities and news by conducting routine online research. The internet is home to an abundance of research tools to assist in drilling down to specific information being sought.

Bookmarks to relevant sites, blogs, forums, or databases can be made for future reference. Setting up alerts on topics of interest can be managed through platforms such as Google, Microsoft, Yahoo, Bloomberg, etc.

Businesses and individuals can also create LinkedIn and Twitter profiles to interact with other professionals. With the boom in online activity, online research ensures one is abreast with the latest industry knowledge.

5. Taking refresher courses

Taking refresher courses at colleges or universities or bringing in experts to provide these courses in-house is an excellent way of keeping employees updated on industry best practices. Some employees may have long left school, hence need regular refresher courses to stay up-to-date on developments in the industry.

6. Finding a niche

Concentrating on a niche segment of the industry and applying effort to learn more about this niche segment can upgrade someone from a regular employee to an expert. Depending on the strategic importance of the niche with reference to the industry, acquiring skills and knowledge of a niche segment can lead to quality advice and decisions.

Business knowledge

One of the major goals of the analyst when starting any new analysis and design activities, regardless of whether the user area is familiar or not, is the acquisition of information about the current state of the firm environment, the user, what the firm does, and the place of the user and the user’s organization within the body politic of the firm.

One of the major goals facing the analyst when starting any new analysis and design activities, regardless of whether the user area is familiar or not, is the acquisition of information about the current state of the firm environment, what the firm does, the user, and the place of the user and the user’s organization within the body politic of the firm.

The term "firm" will be used to identify the organization as a whole. In some cases the term will represent a discrete business unit or division which can be examined as if it were a freestanding firm. This information, necessary for any analyst, is usually termed "background information." It can be obtained from experience in the firm, from the user, from user documentation, from a "briefing" by the analyst’s manager or other knowledgeable source, or from a variety of similar sources.

Whatever it is called and however it is obtained, in reality this knowledge of the firm and user’s role within that firm is called "business knowledge." Business knowledge is defined as a thorough understanding of the general business functions and the specific areas under analysis. The accuracy and completeness of this knowledge are crucial to the development of the foundation upon which the analyst can build an understanding of the user and the user’s problems and requirements, and design new and more efficient methods of accomplishing the primary tasks of that user.

The task of gathering business knowledge includes acquiring a detailed understanding of the firm’s functions, the processes and tasks which are employed to accomplish those functions, and the relationship of those functions, processes, and tasks to each of the functions, processes, and tasks performed throughout the firm.

The development of the analyst’s business knowledge, regardless of the level at which the analysis is being performed, begins with the identification and description of each of the functions of the firm and of the user’s function, or role, within the firm. This analysis, called functional analysis, usually includes a firmwide organizational chart and narrative descriptions of the functions and subfunctions which make up the business.

Generally the information gathered is collected into a set of documents which become the first stage of the analysis process. The collection of documents resulting from this process may be called a general business description document, a client functional description document, or another similar title.

The development of business knowledge is an integral part of the analytical process. In fact, the acquisition, documentation, validation, and evaluation of business knowledge is the core of analysis. By its very definition, business knowledge is knowledge about the business, what it is, what it does, why and how it does what it does, and how those activities can be performed more efficiently.

To use an analogy, it is possible to understand how an automobile works by studying its component parts: the engine, the transmission, the braking system, the steering mechanism, or the exhaust system. However to gain a better understanding of how an automobile works, it is more meaningful to understand how the various parts interact with each other; e.g., how the exhaust system ventilates the engine and how power is transmitted to the drive wheels by the transmission.

At a higher level, it is more meaningful to understand why each component is necessary and what the engineering principles are behind the internal combustion engine, the principles of physics behind the gearing in the transmission, and the chemical principles behind both the internal combustion engine and the exhaust system.

At a lower level, one can examine how the parts are put together and how the various subassemblies of the engine, the pistons, the carburetor, the manifold, the cooling system, the lubrication system, and the fuel feed mechanisms work.

Each approach is valid, and depending upon what you are trying to do, it may be possible to ignore all the other considerations and concentrate on the part which is faulty. For instance, one does not need to be an automotive engineer to change a tire or fill the fuel tank. However, if you were going to write a column on car repair or a book on automotive design, you would obviously need a greater depth of knowledge.

To use an earlier analogy, that of the medical profession, the surgeon specialist needs a deep background in anatomy, physiology, immunology, pharmacology, and related topics. The family doctor, while needing some background in these subjects, has less need in these areas but needs depth in diagnostic procedures and minor surgery. The nurse has less need than the family doctor for these subjects, but more need than the paramedic, and the least knowledge is needed by the first aid technician.

BUSINESS SKILLS EVERY PROFESSIONAL NEEDS

1. An Understanding of Economics

A baseline knowledge of economics can be a valuable asset in any industry. In addition to an in-depth understanding of pricing strategies and market demand, studying economics can provide you with a toolkit for making key decisions at your company.

“I knew investment in solar was a good opportunity, but the concept of willingness to sell (WTS) helped me to understand and explain why,” Grecco says. “Because of extra incentives from the city program and group purchasing power, the electrical contractors were willing to sell solar energy systems for a much lower price than usual, thereby increasing our consumer surplus. By explaining WTS, I was able to convince the owner to move forward with this project.”

2. Data Analysis Skills

Research shows that an increasing share of firms are using analytics to generate growth. Companies such as Microsoft, Uber, and Blue Apron leverage data to improve their services and operations. And according to LinkedIn, analytical reasoning is one of the most sought-after hard skills in today’s job market.

“Using data analytics is a very effective way to have influence in an organization,” says HBS Professor Jan Hammond, who teaches the online course Business Analytics. “If you’re able to go into a meeting, and other people have opinions, but you have data to support your arguments and recommendations, you’re going to be influential.”

3. Financial Accounting Skills

“I’ve been keeping track of my company’s annual reports, and the accounting that I learned helps me in understanding where the business may head in the future,” Prashant says. “I’ve also been tracking a few other companies for investment purposes, and I’ve realized that I can make more informed decisions with my improved knowledge of company financials.”

4. Negotiation Skills

Whether you’re just beginning your professional journey or operating at a senior level, it pays to be an effective negotiator. In a recent report by the World Economic Forum, negotiation was identified as one of the top 10 skills needed to thrive in the future workforce.

“However you happen to see yourself as a negotiator, most people you deal with likely have a different style, at least to some degree,” Wheeler says. “To succeed, therefore, you must be agile. That means flexing yourself so that you deploy different skills depending on the situation and whom you’re dealing with.”

5. Business Management Skills

Strong managerial skills are intrinsically linked to organizational performance. A recent study by Gallup found that managers account for 70 percent of variance in employee engagement, underscoring the need for companies to develop leaders who can drive team productivity and morale.

“I’m more aware of looking at things through a larger lens, from a variety of perspectives,” Higgins says. “I’ve always been a fan of asking thoughtful, learning questions—as opposed to making declarations—and I’m now a big fan of playing devil’s advocate.”

6. Leadership Skills

Whether you hold a management position or not, leadership skills are vital to workplace success. While some people think of leadership and management as one and the same, there’s a difference between the two. Whereas management is centered on implementing processes, leadership is more focused on the people and vision that guide change.

In addition to honing your management skills, building up your leadership skills can be beneficial in any profession. From learning to keep calm during times of pressure to developing your own leadership style, these skills will help you understand how to bring your vision to life and set your team up for success.

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7. Effective Communication

In any business setting, professionals rely on communication to coordinate efforts and accomplish organizational goals. Ineffective communication, or a lack of communication altogether, can prove catastrophic.

8. Emotional Intelligence

Another essential business skill is emotional intelligence, and research shows it’s a leading indicator of performance in the workplace. According to a recent study by TalentSmart, 90 percent of top performers have a high degree of emotional intelligence.

Emotional intelligence is commonly broken down into four concepts: self-awareness, self-management, social awareness, and relationship management. In short, this skill refers to your ability to understand your emotions and how they impact certain situations, as well as your ability to recognize and influence the emotions of others.

No matter your industry or position, having this awareness of yourself and those around you will enable you to have more control over your interactions, as well as help you and your team accomplish goals effectively.

THE IMPORTANCE OF BUSINESS ESSENTIALS

For professionals seeking to advance their career, the value of business skills can’t be overstated. In addition to hard skills, like financial accounting and an understanding of economics, you also need soft skills, like emotional intelligence and leadership, as your organization or business grows.

No matter your industry, an understanding of essential business concepts can help you better understand your organization’s performance, and equip you with the tools needed to spearhead initiatives and drive strategic decision-making.

Do you want to take your career to the next level? Download our free Guide to Advancing Your Career with Essential Business Skills to learn how enhancing your business knowledge can help you make an impact on your organization and be competitive in the job market.

About the Author

Matt Gavin is a member of the marketing team at Harvard Business School Online. Prior to returning to his home state of Massachusetts and joining HBS Online, he lived in North Carolina, where he held roles in news and content marketing. He has a background in video production and previously worked on several documentary films for Boston’s PBS station, WGBH. In his spare time, he enjoys running, exploring New England, and spending time with his family.

Authorship:

https://corporatefinanceinstitute.com/resources/knowledge/finance/industry-knowledge/
http://www.martymodell.com/pgsa2/pgsa11.html
https://online.hbs.edu/blog/post/business-skills-every-professional-needs