4. WHAT IS COMPETITIVE INTELLIGENCE? Knowledge and foreknowledge of the competitive environment — the prelude to decision and action. Competitive Intelligence: The organizational means by which information is systematically collected, analyzed, processed and disseminated as intelligence to managers who can act on it. Competitive Intelligence Process:
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6. – John Naisbitt We are drowning in information but starved for knowledge. “ ” CHALLENGES IN CI
7. CI TRANSFORMS DATA/INFO INTO INTELLIGENCE D a t a U n c o n n e c t e d B i t s E m p l o y m e n t a t t h e s i t e d r o p p e d f r o m 1 1 0 0 t o 9 5 0 I n f o r m a t i o n K n o w l e d g e b u i l d b y l o o k i n g a t s e v e r a l d a t a p o i n t s T h e y i m p l e m e n t e d n e w l a b o r - s a v i n g t e c h n o l o g y I n t e l l i g e n c e T h e i m p l i c a t i o n s o f t h e o r g a n i z e d i n f o r m a t i o n T h i s g i v e s t h e m t h e a b i l i t y t o ノ
8. INTELLIGENCE IS EXTERNAL “ (I)t can be argued that the information revolution has caused managements to be less well informed than they were before . . . (T)he most important changes affecting an institution today are likely to be the outside ones, about which present information systems offer few clues.” — Peter Drucker, “A Survey of the Next Future,” The Economist , 11/3/01
9. COMPETITIVE INTELLIGENCE IS NOT LIMITED TO COMPETITORS CI Group Corporate Security Threats Technology Developments & Sources Political, Economic, & Social Forces Markets & Customers Competitor Capabilities, Plans, & Intentions Industry Structure & Trends
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12. INTELLIGENCE IS ANTICIPATORY – Wayne Gretzky On the ice, everyone goes to where the puck is. Me? I go to where the puck is going to be. “ ”
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14. More than 7 our of 10 companies claim to have an organized CI function . . . . . . But most say they do not have the means, interest, or understanding to use it properly. Source: Ostriches and Eagles: Competitive Intelligence Usage and Understanding in US Companies , Outward Insights, February 2005 SURVEY SAYS…
15. ROADBLOCKS TO EFFECTIVE CI Source: Ostriches and Eagles: Competitive Intelligence Usage and Understanding in US Companies , Outward Insights, February 2005
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20. INVESTING IN DEVELOPING ESSENTIAL CI FUNCTIONS YIELDS COMPETITIVE BENEFITS Provides Early Warning of Opportunities & Threats Collect Data Prepare Report & Disseminate Analyze & Forecast Essential Functions Primary Benefits Supports Strategic Decision-Making Process Supports Tactical and Operations Decisions Assesses and Monitors Competitors Supports Strategic Planning & Strategy Processes
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24. BEST PRACTICE #1: COMPETITIVE INTELLIGENCE IS ALWAYS LEGAL AND ETHICAL Exploit new employees for proprietary information Use illegal methods Compromise customer proprietary information Conduct false job interviews Misuse consultants or agents Misrepresent ourselves We will not ...
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28. The Intelligence to Anticipate. The Strategy to Lead. TM Karen Rothwell, Director [email_address] 1-888-447-5501 www.outwardinsights.com [email_address]
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Notes de l'éditeur
Building on Joanne and Elio’s slides, I will focus on …
Vs. Knowledge Mgt which is not confined to the competitive environment, it can be knowledge on an internal issues. Key is actionable intelligence Second half of slides focus on process - do’s and don’t’s
Difference between information and intelligence is that intelligence requires a human element to connect piece of information through experiences.
Irony is with the Internet, mobile technology and other tools we have more information available to us, but that doesn’t eqate to knowledge or intelligence
Other external factors at play… Think Porter’s Five Forces - looking at all the external forces that shape an industry and help explain the behavior and postioning of its players
Help chart strategy
Good news… Bad news…. This chart reinforces that point - even though 7/10 companies claim to have a process for gathering and analyzing CI, the ways in which CI is used vary widely, meaning that companies that have a CI process can still be eagles. Twenty-nine percent of respondents admit that they do not have “an organized and systematic way to deliver competitive intelligence,” including 14% of the respondents with more than $1 billion in revenues . More than three-quarters (78%) of all respondents use CI for business development and sales purposes, and almost as many (74%) use it for new product launches.
Let’s look at road blocks, these are conditions that big and small firms face. Last two issues mirror earlier point about buy in… Lack of funding leads to resource constraints and lack of adequate training Ask what makes the effective use of CI difficult for these companies. Many of the same conditions as beset IBM in the early 90s.
Process is iterative
Forces that CI be demand-driven Ensures that CI deliers value
All these examples share one trait: they are forward looking. Their answers can feed into strategy development and decisions
Summary of overall benefits that a well run CI program can provide include:
Communication is critical Analysis techniques on next slide
Key is to know what tools to draw on for any given situation.
My rule of thumb is never do anything you’d be afraid to read about on the front cover of the newspaper the following day
Say no to the data dump Be clear about the scope of each role