The underlying competency of business knowledge refers to the ability of a business analyst to make sense of and perform well in their business, industry, solution, and methodology. It is an important competency because it enables the business analyst to relate their work in a change initiative back to the higher-level context of the business in terms of its benefits, structure, and the value delivered.

There are a number of specific core competencies identified as part of the category of business knowledge. These include the following:

• Business acumen
• Industry knowledge
• Organization knowledge
• Solution knowledge
• Methodology knowledge

Let's now consider each of these core competencies and understand what they mean and how to apply them effectively when performing business analysis functions.