Scip What Is Ci 2002

Is a compass the
only tool you

would use if you
were sailing
halfway around
the world?
© 2002 Society of Competitive 1

Intelligence Professionals
Overview of Competitive Intelligence (CI)

What is CI?
What intelligence can be obtained legally and ethically?
What is the CI function and process?
What principles and skills are needed for the function?
Where are the sources for CI?
Who are the best internal clients for CI?
What methods are available to gather CI?
What is the framework for accessing, sharing, and utilizing
CI across the organization?

1
Overview of CI (continued)
How can companies have the right intelligence, but not share
or utilize it effectively?
How do you create structures for using CI effectively within
a company?
How is information made available but improperly
employed at high levels?
What should you consider when setting up and maintaining
an on-going CI process?
How do you ensure that CI is strategy driven?

“You don’t just set your

compass and head south
— or you will quickly run
aground. Instead, you
steer from point to point
according to how the river
is running and the
obstacles that appear in
your path.”
Abraham Lincoln
on how to govern
as one would steer
© 2002 Society of Competitive a riverboat 5
2
What is Competitive Intelligence (CI)?
CI is a systematic & ethical
program for gathering and
analyzing information about
your competitors’ activities
and general business trends
to further your own
company’s goals
© 2002 Society of Competitive Adapted from“Competitive Intelligence” by Larry Kahaner 6

What Intelligence Can Be Obtained

Legally and Ethically?
New
Competitors
New
Competitor
Technology
Actions
80%-
80%-90% of
all information
is public
New knowledge
New
Legislation Markets
Marketplace
Changes
3
What is the CI Function and Process?
Compile Analyze
INFORMATION KNOWLEDGE
COLLECT DATA
Communicate
Apply Act
INTELLIGENCE DECISION RESULTS
Decision maker

Intelligence Professionals Adapted from William Y. Wilson, NextStep and Timothy W. Powell, InfoStrat.
What Principles and Skills are Needed

for the Function?
e System
Valu
System
n ce Builders
Builders
llige stem
Inte tion Sy Protectors
Protectors
Crea
Integrators
Knowledge Decision-
Decision-
Knowledge
Builders makers
makers
Builders Secondary
Analysts Primary
Researchers
Informed
Action
Data
Data
Builders
Builders
Intelligence Professionals Developed by SCIP in association with the Monitor Company
4
Where Are the Sources For CI?
Books
Internet
Financial Newspapers Internet
Speeches Reports & Magazines
& Online
Edited
Annual Government Analysts’ TV/Radio
Documents
Reports Reports Programs

Sources of CI (by extent of use)

High use Moderate use
• Trade journals • Sales representatives
• External (on-line) data bases • Customers
• External hard copy documents • Internal documents
• Employees • Internal databases/CD-ROM
• Industry experts • Telephone interviews
• Trade organizations
Low use Very little use

• Government records • Product purchasing
• Direct observation • Freedom of information act
• Clipping services • Focus groups
• Security analysis • Case studies
• Competitors (contact directly) • Mail questionnaires
• Personal interviews
• Suppliers
Intelligence Professionals Based on the Society of Competitive Intelligence Professionals 1997 Salary Survey
5
“In the land of the blind,
the one-eyed man is
king.” Niccolò Machiavelli,
La Mandragola

Who Are the Best Internal

Clients For CI?
Market
Planning
& Research
Research & Business

Development Development
Product Strategic Financial

Planning Planning Planning

6
What Methods Are Available to
Gather CI?
fully-integrated
custom field
research
fully-utilized
tracking
reading systems
newspapers
ad hoc,
reactive
TOOL
S
# Comparative # TQM # Baselining
profiles # Benchmarking # CI systems
How Are Organizations Using

These Methods?
7% of companies
Dedicated CI professionals
at corporate & divisions.
Department specialists
tending to develop &
use their own intelligence.
Dedicated staffs for

organization of
information only.
Part-time responsibility
of corporate librarian.
90% of companies
ad hoc full-time
© 2002 Society of Competitive
Intelligence Professionals Time 15
7
What is the Framework For Accessing,
Sharing, and Utilizing CI Across the
Organization?
Decision A Decision
Makers ILE NAL Makers
P YZ
OM E
C
CI
COL
TEAM
LY
APP
L
ECT
PLAN
Decision Decision
Makers Makers
Decision
© 2002 Society of Competitive Makers 16
“We are drowning

in information but
starved for
knowledge.”
John Naisbitt,
Chairman of the Naisbitt Group
8
How Can Companies Have the Right
Intelligence, But Not Share or Utilize it
Effectively?
Analysis and Results Must Be:
•Responsive to Management’s Needs

(even when they don’t know them)
•Focused
•Timely
•In a Usable Format

How Can You Create Structures For

Using CI Effectively Within a Company?
Modes of Dissemination (In order of perceived effectiveness)

• Custom reports • Computerized databases
• Personal communications • Newsletter
• Presentations • Regular meetings
• Special memos • Training Seminars
• E-mail • Bulletin Boards
• Competitor files • Special Retreats

9
How is Information Made Available But
Improperly Employed at High Levels?
Decision
makers don’t Information
act in a is Decision
timely manner Information misinterpreted makers
is incorrect misunderstand
or incomplete CI
Organizations Don’t Make Decisions,

People Do.

“The model for management

that we have right now is the
opera ... yet business should be
emulating a good jazz group ...
you have to develop the score as
you go along.”
Peter F. Drucker,
author and management
consultant

10
What Should You Consider When
Setting Up and Maintaining an On-
Going CI Process?
Where Should CI Programs What Budget Should
Be Located and Should Be Allocated to
There Be a Centralized the CI Function?
CI Effort?
How Large Should What Is the Objective

the CI Staff Be? of the Program and
How Is It
Operationalized?
Who Do the CI Professionals
Report to and Who
Are Their Primary Users?
How Do You Ensure That CI is

Strategy Driven?
CI professionals
must work for decision
makers
Decision makers
need to be educated
on the purpose &
benefits of CI

11
“Advantage is a better
soldier than rashness.”
William Shakespeare,
King Henry V
society
of
competitive
intelligence
professionals
12

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Is a compass the

only tool you

© 2002 Society of Competitive 1

Overview of Competitive Intelligence (CI)

© 2002 Society of Competitive 3

© 2002 Society of Competitive 4

“You don’t just set your

© 2002 Society of Competitive Adapted from“Competitive Intelligence” by Larry Kahaner 6

What Intelligence Can Be Obtained

INTELLIGENCE DECISION RESULTS

© 2002 Society of Competitive 8

What Principles and Skills are Needed

© 2002 Society of Competitive 10

Sources of CI (by extent of use)

Low use Very little use

© 2002 Society of Competitive 12

Who Are the Best Internal

Research & Business

Product Strategic Financial

© 2002 Society of Competitive 13

How Are Organizations Using

Dedicated staffs for

“We are drowning

Analysis and Results Must Be:

•Responsive to Management’s Needs

© 2002 Society of Competitive 18

How Can You Create Structures For

Modes of Dissemination (In order of perceived effectiveness)

© 2002 Society of Competitive 19

Organizations Don’t Make Decisions,

© 2002 Society of Competitive 20

“The model for management

© 2002 Society of Competitive 21

How Large Should What Is the Objective

How Do You Ensure That CI is

© 2002 Society of Competitive 23

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