BOOK REVIEWS: Anticipating change

Competitive intelligence (CI) is described as a skill that can be

taught, a discipline that can be used to improve market standing,
a means to knowing a customer`s strategic thinking and an
'ability to see past market disruptions and dispassionately
interpret events. The important point is to learn to see through
the smokescreen oI disinIormation and spot and analyse an
opportunity-threat long beIore it has materialised. The available
data can be in multiple Iorms all the inIormation coming in
has to be appreciated and an observer`s skill is then required to glean the important clues.

Leonard Fuld, coIounder oI the Herring Academy oI Competitive Intelligence, argues that a
group-think` leads to competitive blindness. He gives the example oI Kodak. The company
Iailed to acknowledge the digital camera as a threat to its business, even though the signs were
all there, until the digital camera had taken a substantial share oI its market. Framework, he says
can help siIt through inIormation-overload and nearly everyone can learn to apply the art oI
intelligence. Running war or strategic games help unravel the competitor`s possible moves as
one plays all the possible scenarios or outcomes. Fuld proclaims that the internet is a treasure-
trove oI largely useless inIormation. The book presents a series oI templates Ior the generic areas
in corporate decision-making, helping to unearth both threats as well as opportunities Ior
business.

Developing the intelligence oI a competitor is not creating a perIect representation oI the
company, it is rather building a picture that is representative oI the reality. Intelligence is using
inIormation eIIiciently, making decisions on a less-than-perIect picture it is about seeing your
competition clearly, understanding its strategy and acting early on that knowledge. 'Insight is
useIul only iI insight is acted upon and intelligence is the art oI applying knowledge. It is the art
oI SWAG (ScientiIic Wild Ass Guess). Seeing clearly does not mean seeing perIectly taking
risks based on the inIormation available may provide a competitive advantage, which having
more inIormation but Iailing to act upon, erodes. CI means asking more strategic questions about
the competition than the day-to-day win-loss analysis. Competition should be assessed in totality
as a part oI the competitive landscape, and not in isolation.

Intelligence has a very short shelI-liIe and is very personal, very customised, almost unique.
Once everyone has insight, it is no longer an insight. It becomes common inIormation. Only bits
and pieces oI inIormation lead to intuitive building oI the better whole. At times the data needs to
gestate and cannot be rushed eventually it will speak to you. Intelligence is knowing the
identity, and also acting on signals beIore everyone else in the market place sees the same
picture.

Leave the conIines oI your oIIice and go where the market takes shape, what is happening
outside is real, Iind ways to overcome the mental blinders that block intelligence-reality. An
important part oI CI is overcoming blinders and becoming aware oI the changes in the market
place. Views need to be taken totally because partial view can present a totally wrong picture,
while hiding the reality.

Fuld has liberally peppered the book with practical case studies oI actual companies walking
through the concepts, which not only make it an easy read but also a manual Ior CI. He also
deliberates on the 'Iondness Ior numbers syndrome soIt qualitative inIormation is as critical.

InIormation overload, on the other hand, can lead to action paralysis thus employ Iilters to
eliminate background noise and allow decisions to be taken on critical Iactors alone (rather than
countless others). War-gaming is an eIIective tool that provides a Iresh look at a competitive
landscape and an eIIective war game should match the concerned company against the threat oI
new entrants the threat oI substitutes; power oI buyers and power oI suppliers. For a company
to grow, its strategy must deliver clear beneIits that are diIIerent and distinct Irom its rivals. Each
company also requires Iocusing on low-cost consumer solutions, diIIerentiated corporate
services or Iocused services to speciIic geographic or industry markets to succeed in the
corporate milieu.

Fuld is a diehard Ian oI war games. He says that they allow proIound insights on competition,
help develop what-iI scenarios and building new sets oI directions Ior a company to grow and
thrive amidst the competition. They Iind a company`s unique strategy, set it apart Irom the
competition and give consumers a choice as to why buy this product or service.

Competition should be mined Ior its strategy without blinders, one should piece together a
competitor`s process the process will tell how the competitor will behave today and in Iuture.
Monitoring the competition can help in the building oI early warning systems that can be used to
Iormulate Iuturistic strategies develop possibilities and identiIy signals to watch Ior.

The internet has made inIormation accessible to us in a matter oI hours. The only problem is
discerning the correct inIormation Irom the Iabricated one. Correct search words can unIold
invisible inIormation on the net, but you need intelligence Iilters to distil the inIormation.

Fuld says a representative company oI an industry typiIies to a large extent the mien oI the whole
industry and generally history does repeat itselI in how companies operate within the same
industry. He gives examples oI Walmart and Dell and how, by using CI, they are able to predict
buyer patterns and Iorecasts. Act quickly, learn Irom your past mistakes and look at all other
Iorces in the market-place, and not just the rivals`.

Fuld`s snippets on business strategy read like an unIolding novel. They reveal juicy little nuggets
and pointers that can be applied to other areas and industries and, most importantly, he holds the
reader`s attention with his glib renditions providing easy-to-use ideas that can help anticipate
changes some Iive or even 10 years down the road.


%he Secret Language of Competitive Intelligence: How to See %hrough and Stay Ahead of
Business Disruptions, Distortions, Rumors and Smoke Screens
By Leonard M. Fuld