Competitive Intelligence

A Sword For That War Called Business

What are your competitors doing?

How will their actions affect your company’s plans, decisions and operations?

Are there new competitors on the horizon?

Can you see changes in your market before they occur?

What is competitive intelligence?

• According to the Society of Competitive Intelligence Professionals:

– “A systematic and ethical program for gathering, analyzing, and managing external information  that can affect your company's plans, decisions, and operations.”

• With 80% – 90% of all information part of public knowledge.

What is competitive intelligence?

• CI believes that business decisions should not be made on instinct or intuition, but on information that has been gathered and analyzed. – Analyzed from your point of view.

Competitive Intelligence Model

IntelligenceIntelligence

InformationInformation

DataData

OrganizeOrganize

AnalyzeAnalyze

Competitive Intelligence

Technical IntelligenceTechnical

Intelligence

Technical InformationTechnical

Information

TechnicalData

TechnicalData

ORGANIZEORGANIZE

ANALYZEANALYZE

BusinessIntelligenceBusiness

Intelligence

BusinessInformationBusiness

Information

Business Data

Business Data

TECHNICALEXPERTISE

BUSINESSEXPERTISE

TECHNICALEXPERTISE

BUSINESSEXPERTISE

Technical and Business Intelligence

SOURCE: Krol, Coleman & Bryant, Drug Information Journal 1996;30:243-256.

The Competitive Intelligence analytical process

• Define the question• Gather & organize data• Synthesize/relate & filter the data• Analyze appropriate data• Prepare findings & draw insights• Prepare recommendations• Draft, review, approve, and issue report• Follow-up –update the process

Competitive intelligence

The Competitive Technical Intelligence and Competitive Business Intelligence Processes

Planning

Collection

Analysis

Delivery

Use

Evaluation

Competitive Technical Intelligence – CTICompetitive Business Intelligence - CBI

PrecipitatingEvents

Intelligence Products

• Context

• Objectives• Operations

• Tools

• Results

• Uncertainties• Findings

• Implications

Develop Technical Strategy

Develop Technical Strategy

2

4

5CreateResponseActions

6

• Data

• Gaps

IntelligenceInformation

System

•Feedback

3

DefineFramework

1

CompileInputsMaterials

ProcessInputs

InterpretResults

Intelligence Analysis Process

• Competitive Intelligence should include tracking:– Competitors– New technologies – Market trends– Government regulations

Importance of Competitive Intelligence to the organization

• Fewer surprises• Validate rumors• Able to put competitive actions

in context• Less frustration trying to

interpret overwhelming or contradictory information

• What about more money?

• Corporate mistakes often could have been avoided with good CI. For example, companies have:– Developed and introduced a

new product that was opposite of market trends.

– Ignored an “inferior” competitor who was going to put them out of business.

– Believed in a vendor’s story that turned out to be false.

Importance of Competitive Intelligence to the organization

Specific skills needed to effectively execute the process of acquiring intelligence

Traits: creativity, persistence, written and oral communication skills, analytical ability, understanding of scientific methodology, independent learning skills, and business savvy.

Teachable Skills: strategic thinking, business terminology, market research and presentation skills, knowledge of primary information sources and research methods; communication skills, analytical ability, and a familiarity with scientific methodology.

Specific skills needed to effectively execute the process of acquiring intelligence

Specific skills needed to effectively execute the process of acquiring intelligence

Professional Experience: knowledge of corporate power structures and decision making processes, industry knowledge; enhancement of: primary research skills, business savvy, and journalistic interviewing and observational skills. skills, and research skills

Mentoring: creativity, persistence, strategic thinking, and business terminology; enhancement of: communication

Specific skills needed to effectively execute the process of acquiring intelligence

You must know

• What companies do you compete with? Why?– Which company scares you

the most?

• What idea, technology or condition could put you out of business?

• Often don’t realize who we compete with and why.

• Might consider the “big guys” but not those small companies wanting to take our business.

• The biggest threat may not be a company, but a “thing.”

• CI can bring to light other threats.

Believe it or not

What do you need to start a CI program?

• Staff • Resources• Money

Staff…

• Dedicated– CI is part of their jobs– May not do CI full-time

• Trained– In the methodology & a

variety of resources– How to analysis and interpret

the data• Empowered

– Can act with authority to gather data

Thank You !