Meaning of Know-how (What it is, Concept and Definition)

know-how is an English term that literally means "know how". know-how is the set of practical knowledge (secret formulas, information, technologies, techniques, procedures, etc.) acquired by a company or a professional, which brings them competitive advantages.

It has know-how the organization that manages to dominate the market by presenting specialized knowledge about some product or service that competitors do not have.

O know-how it is directly related to innovation, skill and efficiency in the execution of a given service. It is a valuable product resulting from experience.

An example of know-how are the knowledge held by a company in the context of franchising (franchise). The franchisor (franchise owner) has certain practical knowledge (know-how) - related to the sale of products or provision of services to the final customer - which will be transmitted to the franchisee.

Currently, in addition to the know-how, a company to be successful must have the "know-why" (knowing why), that is, knowing why something is done in a certain way.

O know-why It is a concept that arises from knowing the market, that is, understanding the reasons for the need for the competences developed by the company. It is necessary for the company to study consumer behavior to develop specific products/services.

The expression know how refers to a group of knowledge that are essential to manufacture a certain product or to manage a certain business and can be related to the technological aspect, such as machines, computer systems, technical documentation (calculations, drawings, formulas), manufacturing instructions, etc.

O know-how it is not like some patented inventions (protected by law), not least because it is often acquired through a continuous effort of many years. Other times it has an element of secrecy, as the proverb says "Secrecy is the soul of the business."

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