Best Practices, LLC Strategic Benchmarking Research

Competitive Intelligence Excellence Benchmark: Creating a

High-Value CI Function to Drive Better Business Decisions

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Table of Contents

Executive Summary pgs. 3

Research Overview pg. 4

Participating Companies pg. 5

Competitive Intelligence Pyramid pg. 6

Key Findings & Insights pgs. 7-13

Structure & Scope of Your CI Function pgs. 14- 21

Key Sources for CI Data Collection pgs. 22-29

CI Source Effectiveness pgs. 30-35

“How much" is Competitive Intelligence used in your Organization pgs. 36- 41

CI Collection Processes pgs. 42-44

Collecting CI Data Effectively & Efficiently: Key Activities pgs. 45-48

Performance pgs. 49-52

CI Customers & Customer Relationships pgs. 53- 58

Benchmark Class Profile pgs. 59-60

About Best Practices, LLC pgs. 61-62

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Competitive Intelligence Benchmark Research: Objectives, Methodology

& Topics

24 Survey Respondents

• 42% -- Director, Exec.

Director or Associate

Director

• 42% Senior Manager or

Manager

• 16% Lead or Senior Analyst

Respondent’s Role

Survey Objective Research Overview Methodology Topics Covered

Best Practices, LLC conducted

this benchmarking study to

identify best practices and

innovative methods for improving

the strategic role and impact of

the Competitive Intelligence

function within the

pharmaceutical and related

industries.

Provide healthcare industry

leaders with metrics and

insights they can use to

evaluate and compare the

performance of their

Competitive Intelligence

organizations.

Best Practices, LLC engaged 24

Competitive Intelligence leaders

from 20 companies in the

healthcare industry to participate

in this benchmarking study.

CI Sources & Activities

CI Budget & FTE Levels

Uses of Third Party Vendors

Top 5 CI Employee Skills

CI Evolution & Trends

CI Structure & Leadership

Best Practices & Lessons

Learned

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Benchmark Class And Representative Job Titles Of Participants:

Twenty-four competitive intelligence leaders from 20 companies in the healthcare industry participated in

this benchmarking study. Participants represented small, midcap and large biopharmaceutical and medical

device companies. Almost 60 percent work in U.S. locations.

Universe Of Learning: 20 Companies Participated In Study

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Strategy/

Action

Knowledge/

Insights

Intelligence

Information that has been

subjected to analysis.

Information

Data that has been organized

& processed.

Raw Data

Miscellaneous bits about competitor. Not

yet organized.

Successful CI Programs Develop a Strategic Focus

Competitive Intelligence Pyramid

New programs typically begin at the tactical

level and then build, but “too often groups

get mired at the tactical level,” said a former

head of a recognized pharma CI program.

Vetting, prioritizing, organizing,

synthesizing, and testing information

precedes analysis.

The most successful CI groups

provide recommendations. They

focus on providing top executives

with the information and insights they

need to make strategic business decisions.

Tactical Focus

Strategic Focus

CI adds value and gains buy-in through the strategic process of transforming raw competitive data

into actionable insights that have a financial impact for the company.

CI V

alu

e

Best-in-Class CI groups deliver analyses

that interpret information and explain its

significance to company.

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Key Findings & Insights

Few of the key findings and insights that emerged from this study:

Reporting:

Brand teams, marketing, business development and market research are the primary internal CI customers,

in line with this CI function reports to market research at 29% of companies. The CI heads report to vice

presidents at 46% of companies.

Top 3 Sources and Tools:

Participants cited a wide variety of CI sources and tools they must have to do their jobs effectively. Below

are the top 3:

CI vendors

Industry experts/KOLs and other human contacts

Pipeline databases

Delivery Format For CI Insights:

The top 3 delivery formats used are ad-hoc reports/ presentations, real-time/early warning CI alerts and

regularly scheduled CI reports.

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Best Practices observed eight key hallmarks of excellence in the CI programs at participating companies.

Hallmarks of Excellence in Competitive Intelligence Programs

Focus on top decision- makers and understand their issues

Build strong

relationships with a

few key customers

Hire staff with past

experience involving

outcomes responsibility

Provide relevant, forward-

looking deliverables with

analysis & recommendations

Exhaust secondary

resources before engaging

in primary research

Reduce risk by engaging

Legal in developing

polices & processes

Engage internal

clients in a continuous

feedback loop

Measure results to

show that CI function

can ‘move the needle’

Competitive

Intelligence

Excellence

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% Respondents

CI Reports to an Array of Different Functions

There is no clear reporting relationship for the CI function. While at 29% of companies the CI head directly

reports to market research. At other companies, CI also reports to marketing, the C-suite, business

development and brand teams.

N=24

Q. Please indicate the functional group into which your Competitive Intelligence head directly reports.

Competitive Intelligence Reporting

Brand Team / Business Unit

Business Development

Board (CEO, CFO, COO…) level

Market Research / Industry Analysis

Business Planning / Business Insights

Marketing / Communications / Press / Investor Relations

Others

17%

8%

4%

29%

17%

13%

12%

Others: Research Networking,

Discovery Research, Strategy

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Preferred CI Delivery Formats Is Ad-hoc CI Report

Ad-hoc reports or presentation are the most valued delivery format. Providing real time/ early warning

alerts ranks second. Other preferred formats are regular CI reports, periodic newsletters and personal

calls to affected executives.

N=19

Q. Which of the following delivery formats are your Top 5 most effective methods for delivering CI insights to your internal

customers and stakeholders?

Top 5 Delivery Formats for CI Insights

Monthly/periodic

newsletters are

scored 81, whereas

daily round-up

scored only 44

Ad-hoc CI reports or presentations (130)

1

2

3

4

5

Real-time/early warning CI alerts (96)

Regularly scheduled CI reports or

presentations (89)

Monthly/periodic newsletters (81)

Personal phone calls to affected

executives/ stakeholders (81)

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% Respondents

Average Corporate Size Is $14 billion

On average the benchmark companies corporate size supported is $14 Billion.

N=24

Q. What were the approximate total revenues ($US) and FTE strength that your company reported during the last fiscal year

Corporate Size Supported

75th Percentile $21 Billion

Mean $14 Billion

Median $14 Billion

25th Percentile $2 Billion

Note: Each bundle represents $1 Billion

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Best Practices®, LLC is an internationally recognized thought leader in the field of best practice

benchmarking®. We are a research, consulting, benchmark database, publishing and advisory firm that

conducts work based on the simple yet profound principle that organizations can chart a course to superior

economic performance by leveraging the best business practices, operating tactics and winning strategies of

world-class companies.

6350 Quadrangle Drive, Suite 200

Chapel Hill, NC 27517

(Phone): 919-403-0251

www.best-in-class.com

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