Competitive Intelligence: remy tie Records managers are perfectly positioned to ensure that the appropriate information is identified as key intelligence and is communicated proactively to the organization’s decision-makers leary, the functions and sfesional are, there #8 una ‘would fil and organization At the Core records and information managementBHEGING seat Organizational Boundaries sophisticated computerized tems, interpreting laws, and applying international standards. RIM and records professionals no longer only protect and archives manage records, but also encourage their effee- ment (managing. unpublished tive use. There isa shift from RIM being business documents, of both active seen as merely an overhead administra: and historical value). Knowledge man- tive expense to being understood asa agement (managing what employees strategic asset and busines ally know) and competitive intelligence identifying and using strategic infor- both cases, The Emphasis Shifts mation about competitors) are two however, many to Information new areas that have developed to sup- of the more mun- Largely becauseofthe developmentand port corporate information resource dane aspects of manag comergence of information and commu- management, ing documents can now be nication technologies (ICTS), there has These four arees ~ librarianship, performed automatically. by been a considerable change in the way records and archives management sophisticated computer systems, organizations ae formed and in how they (RAM), knowledge management (KM), _ leaving the professionals free to focus function. They now are described as net- and competitive ineligence (CI) - canon the content of the documents (the worked intel and learning be paired. Both librarianship and record- information they contain) andthe users Changes in organizations and their keeping have traditionally focused on of such information. Librarian often call operation have led to changes in the managing documents. Identifying which themselves “information managers” and various disciplines that handle organi- documents to collect, organize, provide records. managers have ~ rightly - zational information, including librari- access to, and preserve has been the become RIM professionals or strategic ig Published materials) primary focus of such practitioners. In___information manager. Morch/April 2004 + The Information Monagement Journal 47.RIM professionals deal primarily ‘with information that enables organiza tions to survive and thrive, so they deal with strategic information, which is found in a variety of sites. tis found in records ~ those documents that provide evidence of the organization's business transactions and that may originate cither inside or ouside the organization. However, strategic information is also located inside employees’ heads ~ ‘through their experience of working with colleagues, competitors, suppliers, and «customers ~ ths is the focus of KM. I is also located outside the organization and in the environment that comprises many sectors, including government, industry, and competitors. This is the domain explored by CL New Disciplinary Relationships IFRIM professionals ae to facilitate the strategic use of information con- tained in the documents they manage, they need to have an awareness of KM and Cl. KM is important to RIM prac- titioners, a it involves capturing cor- orate memory; CI is important, too, as it involves identifying strategic information and making it available to decision-makers. RIM professionalshavea central coor inating role in corporate information management and can ensure that intel gence is distributed tothe key decison makers in the organization. Additionally, RIM professionals can no longer focus only on what is happening inside their ‘own organizations, They must be aware ‘of what is happening in other organiza~ tions in their industries and in interna tional standards, as wel as beyond their professional and industrial boundaries. All these forces wil affect the RIM pro fessional sooner or later ‘While RIM professionals may be aware that much information of strategic x originates from outside the organization's boundaries, CI provides them with the skills and techniques that identify the strategic itligence in externa informa tion interpret and make it useful tothe ‘enterprise. RIM professionals are no longer bound to the physicality of records 48 the Informstion Mosogemen! Jovrnel bat increasingly must be concerned with their content ~ information There are those in the organization who do nothing but C1 activites and those who need tobe aware oftheir par ticular contribution to vital CI functions For the most par, RIM professionals are among the latter group. Even though RIM professionals may not undertake the ‘CL functiom in its entirety they are in & Position to contribute tothe proces, in particular by coordinating and analyzing the strategic information contained in records ~ especially those that originate ‘outside the organization ~ so it can be transformed into inteligence on which to base decisions and action What Is Cl? Al organizations need to develop strategies for action based on an ade quate understanding and analysis of their marketplace and its environment Decisions that inform such strategies must be timely and correct; they must ao be informed. Too many business leaders make decisions ~ perilous deci- sions~ onthe fy CI strategies have been developed specifically to avoid this. ‘here are many definitions of Cl all centering on ethical and legal selection, collection, processing, interpretation, analysis, and distribution of highly spe- cific and timety information concerning industry rivals and the external business ‘environment, Cis about mining infor mation sources and using appropriate analytical techniques to put this infor- mation together — information becomes intelligence only aftr itis analyzed CL is both a product and a process The product is actionable information that is used as the basis for a specific action, The process is the systematic acquisition, analysis, and evaluation of information for competitive ad cover known and potential competitors. Cl Objectives ‘The objectivesof Cl include managing and reducing risk, making. knowledge profitable, avoiding information over load, ensuring privacy and security of information, and using corporate infor March/Apsil 2004 mation strategically, It is worth noting ‘that they are similar to RIM objectives. In addition, Cl can improve planning and decision-making within the organiza- tion, enhance forecasting of competitive threats, avoid blind spots, and prevent information leaks, as well as be used as counter intelligence to protect the orga- nizations intellectual property and com: petitive advantage. In his book Monitoring the Competition: Finding Out What Is Realy Going on Over There, Leonard Fuld says CC seeks to provide “early warning sig- nals to alert’ management to both threats and opportunities” and to assist in the decision-making process at all levels so that value can be added to information through analysis, interpre tation, and presentation. C1 also seeks to make better use of what the onganiza- tion already has by way of information and experience of its. competitors and industry. Ethics One of the first things that enters many people's minds when they hear “C1” is some kind of industrial esp: ‘onage, usually of the most dubious kind, But that is not the cases Cl involves identifying information read Iy available in the public domain and interpreting it inorder to assess whether it has meaning forthe organi zation. For example, CI might involve monitoring job advertisements placed by rival companies. This will indicate ‘what kind of positions need filling and how frequently, which in turn might be a signal that either there is high staff tumover due to low morale or thatthe ‘organization is expanding rapidly in a line of business Cl then is the legal collection and analysis of open-source, or public domain, information ~ and does not involve illegal, immoral, or unethical activities. Its well understood that up to 90 percent of CI can be easily ‘obtained by legal and ethical means ~ and the balance is accomplished by _g00d analysis Cl practitioners, therefore, base their work on moral principles,knowing the diference between right and wrong, This not only includes the non-information-gathering functions, bt also avoiding conc of intrest in fuliling duties, providing honest and tion as well. After this, it is essential to prioritize the important decisionmak: ers the relative importance of the vai ‘ous categories of information that they requite, how often they require it, and RIM professionals must not forget the value of what they already know about the company, its objectives, and its staff realistic recommendations, and promot ing ethics within an organization. Basic Cl Functions Seven steps of Cl ~ each related to ‘essential CI functions ~ can be ident fied, However it should be remembered that information gathering and inter preting processes are often iterative. This means that as information is assessed it might be accepted or reject cd, or it may indicate that more infor- ‘mation is required or that it needs to be corrected. There is, therefore, fluid :movement among these steps 1.Ask the question The first step is identifying the key decision-makers in the organization and determining their intelligence needs. Often they themselves don't know and so this step demands skilful «questioning about what decisions they typically make and which sources of information they use. ‘The kind of information they need usualy fils into one of two categor strategic (es acquisitions, takeovers, financial performance, new product development of competitors) or tactical (eg wins and loses, key customers and market niches, competitor prices, and campaign). Key decision-makers are found not only atthe top of the organization, but also among middle managers and tacti- cal taf, such asin sales. These individ. uals are often good sources of informs 50 The informotion Managemen Journal the best way in which intelligence should be provided to them, 2. Look at the organization, indus try, and competitors Getting to know the organization ~ its type of business, numberof employ: ces, annual sales, and key financial information ~ is essential. An under standing of the company’s history and recent company news that relates to its stability and health is also important Much of this information will already bbe known to the RIM professional. CI practitioners must be familiar with the industry in which they work. This means looking at the industry's contribution tothe gross national prod: uct (GNP) and the industry’s history and development, noting event, histor ical and recent, that have shaped or sig nificantly affected the industry aswell as looking at the number of companies operating in the industry, nationally and internationally. How many people are employed in the industry? What is the total output or shipments? Consider local and international com. petits, Who ae the other players, com panies, suppliers, and customers? What isthe relative marketshare of the organi 2ation’s major competitors? Understand the competitors assumptions and mind set, resources, capabilities, and commit ments, as well as its culture and person ality, Note also the larger competitive ‘environment, the influential factors (social, technological, economic), and + Moreh/April 2004 the relevant laws and regulations, newly enacted or pending, that may have bear ing om the industry’ future 3. Identify Sources Because information about compet tors is needed, the next step is identify ing information sources. This can be more complex ~ and mote fun — than most people realize. Clearly, there is ‘much information contained in a wide variety of documents, including pub- lished documents such as those that might be found ina library. Remember, however, that public information is not synonymous with “published” informa tion ~ it means information that is available inthe public domain, Some questions to ask include: Where am I going to find what I want to know? How long will it take? What sit going to cost? Information sources can be internal, external, and third-party They can include customers, industry periodicals, promotional materials, marketing research, analysis of com pettors’ products, competitors’ annual reports, trie shows, distributors, the Internet, news media, academic research, specialist, associations, and patents, to name just a few There are_many other types. of sources. Internet features, such as list- ser, enable keeping up to date with announcements, gossip, and. rumors. Also useful is attending trade shows, professional association meetings, talk ing to consultants and customers, and looking at advertisements and anything se that could be a source —even noting what cars are driven by employees of rival companies. Each of these sources has different usefulness for providing corporate or market data Las, there is the information con: tained in the records with which RIM professionals deal ona daily basis, Many ofthe records may contain information that would aid decision-makers, 4. Information-gathering techniques Actually gathering the information requites using certain tools and tech- niques, not all of which are suitable forCl objectives the Cl specialist has to use judgment in determining the rele vant Cl needs and the most appropriate tools and techniques. These are chose depending upon various factors such as CU needs time constraints financial cor straints, staffing imitations likelihoud of “obtaining the data, relative priorities of data, and sequencing of raw data, Included in such information-gath methodologies such as interviews, focus oups, questionnaires, participant observation, data analysis, and meas urement, In order to verify information remember, in Cl, a single source of information is seldom able to become intelligence), techniques such as trian gulation are used, in which more than fone measuring instrument is used to examine a single phenomenon. In addi ion to these formal techniques, RIM professionals must not forget the value tof what they already know about the company, its objectives, and its staf Often just one sentence of one word identified at the right time can be absolutely critical. Two notable infor ive benchmarking Environmental scanning includes the gathering of information concern ing the organization's external environ ment, the analysis and interpretation of his information, and the use of this analyzed intelligence in strategic deci sion- making The environment can be divided indirect impacts, such as politcal, social, economic, and technological forces + the industry environment, which is likely to havea direct impact on com IF the practice of environmental scan is poi value and credibility, it must bea strate gically acknowledged, systematic to have any long-term process within the organization. There aspect or outcome, such as actual busi must be a logical framework to the ness practices or production costs of scanning conducted and there must be competitors. Benchmarks assist_in evaluative rigor attached to the infor anticipating the lon mation collection. Allemployees should moves of the organization's id be encouraged to participate in this competitors, especially when comp activity at some level = including RIM to the organization’ resources. professionals Competitive benchmarking entalsa 5. Evaluation, synthesis, and analysis thorough investigation of the desired Once information has been identified ya 4 7 CRC Cus maw mer) firewalls when they can_dive right in? Identity theft is America’s fastest-growing crime, affecting an estimated | 700,000 people a year in the US. alone. Theft of company records is the se leading source of identity theft and, by 5 law, the company is responsible for any information about its employees or clients that leaks out. Trusting an outside firm to dispose of your confidential data for you is not the answer. The surest way to protect your company from identity theft is to shred sensitive documents at the source-in the tempered steel cutting heads of a Destroyt’ shredder. | With over 50 models available, there’s a Destroyit for every security need. Contact your Destroyit dealer today. SHRED IT AT THE SOURCE, destroyit AW: to CORPORATION sales@mbmcorp.com Ea March/April 2004 + The Informetion Management Jowrecl 51and collected, it must be turned into times there is only minimal data with lar pieces of information from different intelligence, Most writers emphasize which to work, draw assumptions, cre- sources that pethaps deal with, or analysis of data and information in ate intelligence, and make predictions enhance, other topics. A single piece of order to understand and make sense of Itisuseful forthe CI specialist tohave information on its own ~ without con what has been seen. However, this step an understanding of the entire informa-_text~isseldom useful, rust be preceded by two other steps: tion context so that technical, compet Ofiten te relationship between pieces evaluation of the data and information tive, and market information from of information isnt obvious. One way and synthesis of the various types and internal and external sources is under- to overcome this problem is through sources of data and information stood, To contextualize the information formal synthesis of the information under a number of key intelligence top- ies (KIT). KIT usually include relation- Too often, too much time is spent Na ai oe a » on collection or research, leaving Si epeeaetes inadequate time for analysis formance; and strengths and weakness 3. This enables the Cl practitioner 10 get a handle on what is being examined. and how to “read” the information and Evaluation - Evaluation of the infor- being gathered, itis important toexam- data. (These categories might also be ration and data that has been collected ine and understand the STEPP factors useful atthe gathering stage) isessential in order to ensue its integri-__ (trends in the sociological, technolog: Analysis Too often, to0 much time is ty. Datathatlacks accuracy and elabil- cal, economic, political, and physical spent on collection or research, leaving ity may be marginally correct data, a environments). Such localization will inadequate time for analysis. Without concoction of good data and bad dita, enhance the meaningfulness of the analysis, the CI will provide either a or even disinformation. The informa- information, aswell asasist in predict- rectal of facts or a “dump of data with tion needs 10 be assessed for qual ing future trends, lie confirmation or advice and so must validity, and usefulness ~ and these This lads to interpretation of the caution the customer of the possible teria tend to be tempo-spatially based information. Information can be incompleteness of the information (eg. where or when the information understood through interpretation and Analyzing the information and gleaning was created or willbe used). Itismeces- dialogue (known as hermeneutics). meaning from it is the most important sary to ask questions such a: Understanding and interpreting infor- part of Cl. There are moe than 100 dif- ‘mation is highly subjective and depends _ferent analytical techniques that can be + Why was this information created? on an individual’ personality, knowl. used to extract meaning from the data 2 Bp whan waa called, cilge frarewock, experiace, milieven and information that has been collected, the time of day. Through such exchange These analytical models include + What might happen as a result ofthis information, or what caused it and interpretation, the CI specialist is able to blend tact and explicit know! edge in order to determine new mean- + blindspot analysis, + Are we able to confirm this through using other sources as well? + competitive postion matrix ings, which can become the basis for * competitor benchmarking * How do we"rel this ifomaton econ ledngt actin. The Clit» core crmptencis nis is there more than one way therefore engaged in a producer/ceator——. gr ppp + Does this information tell us any- model of information seeking and use thing we did not know that we need and isnot only a consumer * experience curve analysis to know? Or might it be useful to Synthesis - In “The Art of Scanning + GAP analysis someone else? the Environment,” an article published porter’ Five Forces in the Bulletin of the American Society a“ i m + product lifecycle analysis Wherever possible the origin of the for Information Science, Chun Wei Choo information should be ascertained and notes that information collection is“an_* S-curve analysis the methodologies employed in creating organizational function that requires + SWOT (TWOS) the information examined and tested continuous planning, coordination, |. same simulation for accuracy, Often this is not possible innovation, evaluation, and fine-tun ae pare ican and it becomes necessary to rely on ing” Part of information collection is —* Wit/lss analysis judgment and experience, Also, some- bringing together and comparing simi + market share analysis 52. the Informotion Monopement Journal « March/April 2004vulnerability analysis distinctive competence These models ae often categorized as strategic, copporate, customer, environ: mental, or evolutionary. C1 ag Fleischer and Babette Bensoussan’s FAROUT cri teria are useful in interpreting these models Future Accuracy Resource efficiency Objectivity U_ Usefulness T Timeliness entation Applying this formula enables the selection of the appropriate analytical technique for the problem that must be solved and the nature ofthe information collected, A framework for competitor analysis should alo be developed and the following must be determined: what issues of competition must be Tooked at intellectual capital market share growth capabilites quality of product innovation price 6, Dissemination and communication Finally, the intelligence ~ the value- added information ~ must be commu- nicated to the key decision-makers. Delivery of information should be done through vehicles and in formats that match the work habits and preferences of these key people. The intelligence also must m tain requirements of presentation: its conten, format, orientation, and other attributes must address the situational requirements that affect the resolution of the problem or clas of problems that is handled by the decision-maker. For ‘optimal value and use, the information should be coordinated, checked, cros- referenced, compared, critiqued, cate gorized, customized, and condensed. There are various types of intel gence that will be communicated in myriad ways. Different types of intelli agence include current, basi, technical, carly warning, estimated, work group, targeted, crisis, foreign, and counter intelligence. ‘The delivery service should be sensitive to constraints and cover a range of time horizons and provide different levels of focus or detail These levels include urgent news and detailed reports; some prognost cate the future and are speculative. Ideally, there should be no gap between the individuals making dec sions and the Cl that they need in onder tomiake such decisions according to thei importance, timing, quantity, oF quality. 7. Outcomes Business is a series of decisions Businesses have an increasing need for intelligence on which to base decisions concerning the conduct and develop ment of each of their strategic objec The RIM professional must understand how decisions are made and ensure that the organization learns from past exp erEN ERE, something that can be achieved through Cl processes Because they may be scattered through ‘out the organization, the Fist step is ‘ensuring that the correct intelligence makes its way tothe coreect destination, 54 The Information Masegement Jovrnel tives, a8 well as the protection of their business against competitive threats The final result of the information gathering, interpretation, analysis, Moreh/April 2004 and recommendation processes of CC is the action that is taken by a decision-maker. This constitutes information use, which is a dynamic, interactive social process of inquiry that may result inthe ‘making of meaning or decisions. The constant movement in. making sense and meaning of the information that ‘one given, moving from the general to the particular, to the whole and back to each part, requis active participation by the user. In addition, the user must challenge assumptions made, identify the origins of the information, question how it was obtained, and determine many other qualities of information, Determining such qualities of informa tion asi in its use and application. ‘Making decisions is one ofthe tough: est things that people need to do ~ both professionally and personally. In. the current business environment, making decisions on the fly with inadequate information or time to reflect is com ‘mon ~ but making the right decisions is crucial to the success of every organiza tion. The RIM professional must under stand how decisions are made and ensure that the organization learns from past experiences, something that can be achieved through Cl processes, Managing the Intelligence Program The Cl process begins and ends with the activities of planning and direction. Appropriate management of the Cl function is essential from these carly stages so that scope and impor tance ofthe work is understood. If the organization's Cl proceses and objec: tives ae well understood, senior man agement should be ina stronger pos tion to allocate supporting funds as well as to champion and publicize Cl activities. It is only after this that information gathering, interpretation, analysis, dissemination, and use can take place. Like many other manage ment functions, Cl management revolves around five Key elements plan, people, postion, processes, and peeformancelan ~ Planning involves devising the right strategy and determining Cl requirements People - It is naturally important to get the right people with the right skills doing Cl. However all employees have Cl ole to ply Position - CL must be integrated into the business, with senior-management support. It should also be located at an appropriately senior level, Proceses - The business processes, including aims, objectives, and infor ‘mation needs, must be well understood for Cl to take place Performance - Measuring CI perform ance is important to ensure continued management support. Measurable items include the quality of internal informa- tion collected, its use by key decision- makers, and its impact on decision-mak ing. Another measurement i identifying the gap between what is needed and what the business already has. Counter-Competitive intelligence Another important component of CL ‘management isthe counter-competitive intelligence program (CCI). ‘The amount of information an organiza tion's CI specialists can legally and ethi- cally gather and analyze about its com- petition is the same information equal- Iy available to the competition, The CCI program must reduce the vulnerability ‘of the corporation's competitive advan: tage and safeguard its assets from exploitation, theft, and fraud. Without such a safeguard, the company would not be sustainable and, overtime, would surrender itself to the competition, Plant, personnel, information sys tems, records, strategic plans, intellectu- al property, and intangible assets such as information and knowledge mus all be protected. (RIM professionals are, of course, already familiar with many aspects of this through risk and vital records programs.) There are, therefore, various levels of protection that must be considered: physical, identification of information flows, and evaluation of the information itself, all with relation to competitive advantage. Important questions to as are; What would com- essential between Cl. specialists and petitors look for? and how would they decision-makers, and also between Cl, be able to get access to if The answers IT, KM,and RIM profesional wl suggest ways in which an organiza “The RIM professional can no longer tio’s Cl can be protected be confined to managing reeords in iso lation, without an awareness of how this Beyond Organizational can be used inthe compete environ Boundaries rent outside the organization. RIM pro substantial proportion ofthe infor- fessionals ate perfectly placed to ensure ration that an organization needs for appropriate information is identified as iteligence analysis already exists with- key intelligence and is communicated inthe organization, Mosily this is sat- proactively tothe responsible decision tered, and people ae offen unaware of maker. Thismeans moving beyond man- its value and the necessity to share it. aging records and supplying documents ‘Otherwise, itis assumed that this infor- on demand it implies intelligent under mation will be picked up by someone standing of the content of the docu: cls. While a central locus, such as aCI_ ments that RIM professionals deal with officer or coordinator, may beneeded to and accurate appreciation of the value of ‘coordinate interrelate, and integrate the records beyond their evidential rol. RIM disparate streams of information and professionals are also well-placed to analysis produced inthe organization, it ensure that counter-intelligence proce is nonetheless important to recognize dures are developed, those which might the valuable contribution that can be go well beyond security considerations. ‘made by all employees, and RIM profes The RIM professional must look beyond. sionals in particular, who have many of organizational boundaries in order to the skills, abilities, and opportunities understand the strategic and competitive necessary to support a Cl program. importance of the records that are han tegic information partnerships are dled on a daily basis BI ‘Sue Myburgh is Senior Lecturer and Program Director, Knowledge Management, at the Univesity of South Australia-Adelaide School of Communication, Information, and [New Media. She may be contacted at sue.myburgh@unisa.edu.au References ‘Choo, Chun Wei." The Art of Scanning the Environment.” Bulletin of Society for Information Science 25 (1999). Available at up vww.asis.org/Bulltin/Feb-99/choa htm (accessed 8 Je American snuary 2004). Coombs, Richard E. and John D. Morehead. The Competitive Intelligence Handbook Metuchen, N.J: Scarecrow Press, 1992 Heischer, Craig and Babette Bensoussan, Strategic and Competitive Analysis: Methods ‘and Techniques for Analyzing Business Competition, Upper Saddle River N.]: Prentice Hall, 2002. Fuld, Leonard. Monitoring the Competition: Finding out What Is really Goin There, New York: John Wiley, 1988. McGonagle, John J.and Carolyn M. Vella, The Internet Age of Competitive gence, New York: Quorum Books, 1999, Society for Competitive Intelligence Professionals. Available athp//wwewsciporg (accessed 8 January 2004), Trevino, Linda Klebe and Gary Weave. “thical Issues in Cl Practice: Consensus, Conflicts and Challenges” Competitive Intelligence Review 8 (1997) March/April 2004 + The information Menagement Journal 55:Copyright of Information Management Journal is the property of Association of Records Managers & Administrators and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.