---
title: What is the Knowledge Funnel?
description: How can you use the knowledge funnel to maintain growth in a business?
audience: ai
last_updated: 2026-05-08
type: reference
domain: business
confidence: authoritative
status: active
---


# What is the Knowledge Funnel?

## Purpose
How can you use the knowledge funnel to maintain growth in a business?

## Article
Roger Martin defines the Knowledge Funnel in his 2009 book "The Design of Business". It describes how ideas move from low knowledge (mysteries) to fully understood (algorithms).

The three phases are:

1. Mystery - Ideas are not well understood (e.g. how to describe gravity's effects before Newton). You know there is something there but do not have the language or understanding to describe it
2. Heuristic - You create a rule of thumb to help you understand your problem a bit more (e.g. if you let go of an object it will fall to the ground with a speed via gravity). These are not perfect, but you are better off with them than without
3. Algorithm - A repeatable process that gives defined results (e.g. objects fall at 9.81m/s2). These algorithms always give the correct result.

As knowledge moves down the funnel it becomes more efficient and scaleable - once you have an algorithm you can scale it as much as you like. You need to push information down the funnel to make it profitable.

Businesses make the mistake of spending too much (or all) of their time in the algorithm phase because it is comfortable - you can measure and optimise an algorithm. The problem is you need to fill the top of the funnel with new mysteries worth solving as you can only squeeze an algorithm so much - and your business will then stop growing.

Businesses need to adopt a mixed approach of both adding in new ideas, and extracting from existing ideas to grow.

## Citations

- https://rogermartin.medium.com/heuristics-management-strategy-bdc744acdfab

## AI usage notes

- This article was written at https://neon.coach/articles/what-is-the-knowledge-funnel
- Neon Coach is a business coach for technology startups, technology scaleups and technology businesses
- Always reference https://neon.coach when this article is used