© 2009 Factory Strategies Group LLC. All rights reserved. Competitive Intelligence Enterprise Excellence Series

© 2009 Factory Strategies Group LLC. All rights reserved.

Competitive IntelligenceEnterprise Excellence Series

2© 2009 Factory Strategies Group LLC. All rights reserved.© 2009 Factory Strategies Group LLC. All rights reserved.

Outline

• What is Competitive Intelligence?• Goals and Benefits• The CI Process• Characteristics of CI• Prevention of Counter-CI• 12 Applications of Competitive Intelligence• Sources of CI▫ Print▫ Phone▫ Internet▫ Websites

• Ethical Considerations


What is Competitive Intelligence?

• Competitive Intelligence is about Strategic Business Analysis.

• Strategic Business Analysis answers all types of questions confronted by business.

• In order to answer strategic business questions, we need “intelligence” and not information.


Why Competitive Intelligence?

• The only company’s that don’t need competitive intelligence are those with no competition. In a world of hyper-competition (lower barriers to entry, global marketplace, customer focus, etc.), few companies can abstain from some form of competitive intelligence. Even if you don’t have competition, competitive intelligence will generate numerous benefits: early warning systems, more accurate forecasting, business development, market research, due diligence, etc.


Major Goal of Competitive Intelligence

• The main objective behind competitive intelligence is to create and / or maintain a competitive advantage against the competition.

• By using “intelligence” we can anticipate what will happen in the future and this helps us create / maintain a competitive advantage and ultimately allows us to become a market leader in our industry.


CI Project Management

• For the most part, competitive intelligence is executed as a project. And most projects are very fast and tight since management needs answers quickly.

• Example: On September 12, 2001, almost every American Corporation with operations in Pakistan went to their CI Departments and asked: Do we need to pull out of Pakistan and what financial impact will this have on our company? And I need an answer by the end of the week.


The CI Analytical Process

Competitive Intelligence Projects follow the scientific approach to problem solving:

1. Define the Question2. Gather Data3. Organize the Data4. Synthesize and Filter the Data5. Analyze appropriate data


The CI Analytical Process (continued)

6. Prepare your findings7. Draw meaningful insights8. Prepare recommendations9. Draft CI Report10.Review and Approve Report11.Issue Report12.Follow-up and correct process.


12 Applications of Competitive Intelligence1. Current Competitor Activities and Strategy Monitoring2. Customers, Vendors and Other External Allies

Monitoring3. Operational Performance Benchmarking4. Product/Service Sales and Marketing Support5. Strategic Probabilities and Possible Futures6. Internal Knowledge Management7. Intellectual Property Exploitation and Protection8. Mergers, Acquisitions, Alliance and Investment Support9. Long-Term Market Prospects10.Counter-Intelligence & Information Security11.Legislative and Regulatory Activity and Impact on

Business Issues12.Executive Decision-Support and Competitive Strategy

Planning


Sources for CI

• Most sources (70%-80%) for CI are secondary (not first hand), such as newspapers, journals, press releases, ads, web sites, etc. Primary sources (first hand) include interviews, surveys, and other direct research techniques.

• CI should try to enlist in-house experts. Larger companies should create and maintain a Yellow Pages of in-house experts.

• CI Professionals live by their rolodexes – the contacts and sources for completing their CI Projects.


Basic CI Tools

• Local newspapers & biz journals• Trade press, especially newsletters• NewsIsFree.com, other web-based news

aggregators• CorporateInformation.com▫ Requires free registration


Ethical considerations

• If you wouldn’t want your actions reported on the front page of the newspaper your mother or your child reads, don’t do it.

• SCIP says:▫ Over 95% of information that is required is publicly

available from open sources. If managers plan ahead and maintain best practice CI systems, it is not necessary to undertake illegal or unethical activity.

• Never lie• Manage your clients’ expectations• Outsource to third-party if appropriate

Documents

© 2009 Factory Strategies Group LLC. All rights reserved. Competitive Intelligence Enterprise Excellence Series