Competitive Intelligence

The ability to focus attention on important things is a defining characteristic of intelligence

- Robert J. Shiller, Irrational Exuberance

What is Competitive Intelligence?

Its the process of ethically collecting, analysing, and disseminating accurate, relevant, specific, timely, foresighted and actionable intelligence regarding the implications of business environment, competitors, and the organization itself
-Society of Competitive Intelligence Professionals

Why Intelligence?
Intelligence is usually ahead of its time, and exploits analytics pertaining to past behaviour for provision of much required insight into course of events.

Competitive Intelligence as a Product

Competitive Intelligence is ethical, timely and useful value-added information on customers, competitors, other stakeholders in the competitive environment and the within the firm.

Competitive Intelligence as a Process

In this case, it involves establishing intelligence needs, generating information, analysing and disseminating actionable intelligence to key decision makers, for building competitive advantage and boosting profitability.

If you are ignorant of both your enemy and yourself, then you are a fool and certain to be defeated in every battle.
- Sun Tzu

Function of Intelligence

Produce much required insights and proposition

Upgrade available information to intelligence using analytical capability Collect information from both primary and secondary sources

Disseminate report to decision makers for effectual leverage

7Ps of CI
People Porism Plan Processes Prod Pathfinder Performance
Source: Elijah Ezendu, Competitive Intelligence

Categories of Competitive Intelligence

Market Intelligence Competitor Intelligence

Partner Intelligence

Customer/Prospect Intelligence

Technical Intelligence

Market Intelligence
This highlights acquisition and analysis of information pertaining to trends, geopolitical issues and regulations in a firms market.

Competitor Intelligence
This involves monitoring and analysis of key competitors, budding competitors, new competitors and probable competitors.

Reasons for Monitoring Competitors

o o o o o Predict their next action Exploit their weaknesses Undermine their strength Blow up threats against them Undercut their opportunities

Partner Intelligence
This involves keeping tabs on every individual and organization that has a form of value network with the value chain of a particular firm.

Customer/Prospect Intelligence
This embraces continuous identification and analysis of demographic factors, budget cycles, key internal influences and key focus areas of customers/prospects.

Technical Intelligence
It entails examining every accessible research and development report and allied technical application in order to keep track of competitive technical know-how, make out business alternatives, and generate appropriate and well-timed warning signal to decision makers.

Three Types of Intelligence

Recurrent Intelligence: Its done to be abreast with activities and is not connected to a specific strategic or tactical decision. Reference Intelligence: Its used as groundwork for specific strategic or tactical decision and regularly demanded. Strategic Intelligence: This encompasses broad spectrum of issues and is classically structured to a specific strategic decision.

Counterintelligence
Its a process of securing business secrets, plans, techniques, programmes and projects in order to ward-off adversary.

How does CI improve Business Performance?

i. Lessens costs ii. Boosts sales iii. Captures alliance opportunities iv. Discover gainful acquisition prospect v. Clamps down on competitors profits and sales vi. Enhances defensive strategies vii. Improves organizational agility viii. Achieve first-class status for higher prices ix. Provides leverage for outwitting performance barrier

Overview of CI Process Models

Ashton and Stacey Business Intelligence Process Model 4Cs Process Model SCIP CI Process Model

Ashton and Stacey Business Intelligence Process Model

Needs Targets Sources Methods 2. Collect Source Materials Data 3. Analyze Source Data Information

Needs

1. Plan Intelligence Activities

Intelligence Information Systems

4. Deliver Information Products

Feedback 6. Evaluate Programme Performance 5. Apply Intelligence Results

Intelligence

Impacts

Source: Arthur Weiss, A brief Guide to Competitive Intelligence

4Cs Process Model

Collection
Definition and planning based on user requirements Raw information collection from primary and secondary sources as related to intelligence requirements

Conversion
Collate and catalogue data Integrate data with other related data elements Analyze, interpret and process data

CI/Intelligence Information System

Intelligence User

Countering
Utilization of intelligence in the decision making process

Communications
Disseminating data to relevant users Establishing feedback mechanisms to ensure that information matches needs

Source: Arthur Weiss, A brief Guide to Competitive Intelligence

CI Conversion
Analyze Data Synthesize Information

Insight
Intelligence Experience

Competitive Advantage

SCIP CI Process Model

Collect Data Compile Information Compile Knowledge

Communicate

Intelligence

Compile

Decision

Compile

Results

Decision Maker

Adapted from William Wilson, NextStep and Timothy W. Powell

Generic CI Process
Design and Set-Up

Feedback

Information Collection

Dissemination

Analytical Scheme

CI Analytical Scheme

Define the Question

Gather Data

Organize Data

Synthesize & Filter Data

Outline recommendations

Identify insights

Prepare Findings

Analyze Proper Data

Draft CI Report

Assess & Approve Report

Issue Report

Evaluate and Improve

CI Life Cycle
The average life cycle of CI projects is very small.

Define Question (1 to 2 weeks) Gather Data (2 weeks) Organize Data (2 weeks) Synthesize and Filter Data (2 weeks) Analyze Proper Data (2 weeks) Prepare Findings (1 week) Identify Insights (1 week) Outline Recommendations (1 week) Draft CI Report (1 week) Assess and Approve Report (1 to 2 weeks)

Competitive Intelligence: The Bridge Between Information and Action

Content Generation

Information Aggregation

Competitive Intelligence

Strategy

Business Action

Magazines Newswires SEC filings Web Sites Census Market Research Newspapers

Business Intelligence Software News Portals Online Directories

Competitor Profiling SWOT Analysis Trend Analysis Simulation Forecasting

Communications Brand Marketing Position Human Resources Suppliers Mergers/Acquisition Financial

Product Dev. Business Dev. Public Relations Marketing Information

Vertical Portals News Portals Research Shops

Monitoring Tailoring Archiving

Source: ShiftCentral

Analysis Techniques Used in CI (1)

Environmental Analysis Scenario Analysis Macroenvironmental (STEEP) Analysis Issue Analysis Stakeholder Analysis Strategic Analysis GE Business Screen Matrix SWOT Analysis Industry Analysis BCG Growth/Share Portfolio Matrix Value Chain Analysis Strategic Group Analysis

Analysis Techniques Used in CI (2)

Competitor and Customer Analysis Competitor Analysis Customer Value Analysis Functional Capability and Resource Analysis Management Profiling Blindspot Analysis Customer Segmentation Analysis War Gaming Conjoint Analysis Win/Loss Analysis Financial Analysis Sustainable Growth Rate Analysis Financial Ratio and Statement Analysis Strategic Funds Programming

Analysis Techniques Used in CI (3)

Evolutionary Analysis Patent Analysis Experience Curve Analysis Product Life Cycle Analysis Growth Vector Analysis S-Curve (Technology Life Cycle) Analysis

Primary Sources of Data

I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV. Observations Marketplace Surveys Interview with Internal Experts Journalists Discussion Forums Internet Blog Industry/Product/General Wiki Professional Institutes Trade Unions & Associations Customers Professionals within the industry Suppliers to the industry Competitors Stockbrokers Conferences

Secondary Sources of Data

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) Directories Trade Publications Newspapers Federal Office of Statistics Magazines Journals Newsletters Industry Periodicals Government Statements and Reports Annual Reports Online Databases Vendors Promotional Material Press Releases Websites Subscription News Feeds

CI Products and Deliverables

i. Early Warning Alerts ii. Market Audits iii. Industry Audits iv. Customer Profiles v. Competitor Profiles vi. Technology Profiles vii. Supplier Profiles viii.Competitive Benchmarking

Uses of Competitive Intelligence

Acquisition and Prevention of Acquisition Merger Process Sales Business Modeling Strategic Alliances Manpower Development Organizational Development Strategic Course-Plotting Issues Monitoring Due Diligence Benchmarking Technology Assessment New Venture Development Satisfaction Surveys Environmental Scanning Business Opportunities and Risks Ascertainment Crafting Strategy Generic Business Development Programmes

12 Application Priorities of CI
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Current Competitor Activities and Strategy Monitoring Customers, Vendors and Other External Allied Monitoring Operational Performance and Benchmarking Product/Service Sales and Marketing Support Strategic Probabilities and Possible Futures Internal Knowledge Management Intellectual Property Exploitation and Protection Mergers, Acquisitions, Alliance and Investment Support Long-Term Market Prospects & Spotting Weak Signal Blindspots Counter-Intelligence & Information Security Legislative and Regulatory Activity as well as Impact on Business Issues 12. Executive Decision-Support and Competitive Strategy Planning Source: Recon Competitive Intelligence Solutions

Friedmans Information Layers

Requirements for Starting a CI Programme

Well-trained and empowered staff Access to resources

Properly structured unit or department

Roles in the Intelligence Process

Core Roles i. Primary Researchers ii. Secondary Researchers iii. Integrators iv. Analysts Supporting Roles i. Protectors ii. Knowledge Builders iii. System Builders iv. Data Builders v. Decision Makers

Positioning an Intelligent Firm

Intelligence Skills

Intelligence Strategy

Intelligent Firm

Intelligence Solution

Intelligence Culture

Source: Elijah Ezendu, Building Intelligent Firms

Competitive Intelligence Solution

An apposite Competitive Intelligence Solution provides a tested platform for conducting data-banking, synthesis, analysis, structured evaluation and sophisticated report generation.

Examples of CI Solution 1. Cipher Solution from Cipher Systems. 2. ACIS from Coemergence Inc. 3. Astragy from Astragy B.V. 4. Comintell KXC from Comintell. 5. Acuity from Acuity Software

Dr Elijah Ezendu is award-winning business expert and certified management consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Business Turnaround & Interim Management, Leadership, ADR, Project & Programmes Management, Cost Management, Outsourcing, Franchising, Internal Control, Intellectual Capital, Online Business, Social Media, Software Architecture, Cloud Computing, eLearning, Business & Tech Integration, Social Impact Analysis, and International Business. He holds proprietary rights of schematic methods in HR, Strategy, Competitive Intelligence, Business Model, Business Development, Negotiation, CSR, Social HR, and Social Media. He is currently Chief Executive Officer, Rubiini, UAE. He functioned as Senior Partner, Shevach Consulting, Nigeria; Lead Assessor and Member of Governing Council, Institute of Management Consultants, Nigeria; Lead Resource, Center for Competitive Intelligence Development; Lead Consultant, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Director, Fortuna, Gambia; Director of Programmes, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria. He holds Doctoral Degree in Management, Master of Business Administration and stands as Fellow of several professional institutes in North America, UK & Nigeria. He is an author and world-class speaker who has featured in many workshops & conferences. His ancillary services included council member of professional institutes, editor-in-chief of journals, and Board Member of some Foundations. He serves as Adjunct Faculty of Business Schools in addition to Director of Firms.

Thank You