Every business holds a plethora of knowledge. These kinds of knowledge span from internal data to customer and market information. As varied as they are, all are business assets that facilitate growth when utilized effectively.
In daily operations, businesses already make use of knowledge, one way or another. To thrive in an increasingly competitive market, companies must first understand what knowledge they have. Then they can harness these sources to improve their strategies.
Using Knowledge for Business Growth
Take a look at the following areas in your business. See how analyzing these knowledge points can lead you to better results.
Knowing Your Customers
An apparent source of knowledge is your customers themselves. To improve sales and marketing strategies, you must know your customers’ buying behaviors, preferences, and even their perception of your company. Speak with them and listen to suggestions to gain more knowledge about them.
The more you know about your customer base, the better you can tailor your products and services to their needs. Customer knowledge is necessary to improve existing offerings and develop new ones to cater to more consumers.
You can also gain more sophisticated insights from your customers by mixing psychology with marketing practices. Outsource marketing solutions from a company that specializes in analyzing customer behavior. It gives an in-depth grasp of your audience and teaches the best approach in marketing and advertising.
Building the Experience of Employees
Your employees’ skill sets and work experience also supply important knowledge. Get to know your team members and what they bring to the table, even the skills that may not have direct relevance to their official positions.
A good understanding of your human capital enables you to create internal training programs to hone the team’s skills. Make passing on useful skills to other staff members a goal in doing these. Should you task them with teaching workshops, Give these employees incentives.
Making a habit of upskilling workers builds a more productive and competent workforce. The more competitive your employees are, the more capable your company is to thrive in your industry.
Understanding Your Competitors
When devising business plans, you also study your competitors’ activity and offerings in comparison to yours. Market knowledge is valuable for innovating your products and services.
When analyzing competition, observe not just their price range and product line. Go as far as taking a look at the packaging and design aesthetics. This information gives insight into how they are performing against other brands.
It also helps to be aware of new brands that are rising in popularity within your industry. They reveal ongoing trends and customer preferences, which you can apply to your business.
Contextualizing Your Actions
Business operations do not occur in a vacuum. World events, social and political conversations, and local news bleed into how you run your company. Knowledge of your environment is another asset that guides company plans for specific periods.
Staying informed should be the responsibility of every team member, as external forces can drastically affect all business branches. One example is the ongoing COVID-19 pandemic, the effects of which are felt across all industries. All businesses have had to adjust by making informed decisions regarding safety and work arrangements.
Three Types of Knowledge
The different sources of knowledge that your business utilizes and can further utilize are an extension of three main types: explicit knowledge, tacit knowledge, and embedded knowledge. Distinguishing between the three helps teams better organize their knowledge management plans.
Explicit Knowledge
This is knowledge in its most basic form. In a business, this includes all its available codified data, from budget spreadsheets and employee databases to written proposals and contracts. Explicit knowledge is the simplest to manage, as storage and retrieval are straightforward.
Tacit Knowledge
Tacit knowledge is more personal, as it relies mainly on experience and intuition. This is often found in experts, such as seasoned company employees or company upper management. Tacit knowledge gives companies an understanding of their current position amongst competitors in the market.
Embedded Knowledge
Lastly, embedded knowledge refers to practices that have been ingrained into company culture and processes. On the one hand, these can be reinforced through formal workplace initiatives to introduce a beneficial habit. But culture is also built through non-formal means, which makes it harder to uproot than formalized procedures.
An understanding of the kinds of knowledge your business has at its disposal enables smart knowledge management. When a company manages knowledge well, it can maximize productivity and profit while eliminating as much risk as possible.