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Competitive Intelligence
Dr. Elijah EzenduFIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,
PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr
“The ability to focus attention on important things is a defining characteristic of intelligence”
- Robert J. Shiller, Irrational Exuberance
What is Competitive Intelligence?
“It’s 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
7Ps of CI
People Porism Plan Processes Prod Pathfinder Performance
Source: Elijah Ezendu, Competitive Intelligence
Categories of Competitive Intelligence
Market Intelligence
This highlights acquisition and analysis of information pertaining to trends, geopolitical issues and regulations in a firm’s market.
Competitor Intelligence
This involves monitoring and analysis of key competitors, budding competitors, new competitors and probable competitors.
Reasons for Monitoring Competitors
o Predict their next actiono Exploit their weaknesseso Undermine their strengtho Blow up threats against themo 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 IntelligenceRecurrent Intelligence: It’s done to be abreast
with activities and is not connected to a specific strategic or tactical decision.
Reference Intelligence: It’s 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
It’s 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 costsii. Boosts salesiii. Captures alliance opportunitiesiv. Discover gainful acquisition prospectv. Clamps down on competitors’ profits and salesvi. Enhances defensive strategiesvii. Improves organizational agilityviii. Achieve first-class status for higher pricesix. Provides leverage for outwitting performance barrier
Overview of CI Process Models
Ashton and Stacey Business Intelligence Process Model
4Cs Process ModelSCIP CI Process Model
Ashton and Stacey Business Intelligence Process Model
2. Collect Source Materials
3. Analyze Source Data
1. Plan Intelligence Activities
IntelligenceInformation Systems
4. Deliver Information Products
6. Evaluate Programme Performance
5. Apply Intelligence Results
Impacts
Needs
Data
NeedsTargetsSourcesMethods
Information
Feedback
Intelligence
Source: Arthur Weiss, A brief Guide to Competitive Intelligence
4Cs Process ModelCollection
• 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
Countering
Utilization of intelligence in the decision making process
Communications
• Disseminating data to relevant users•Establishing feedback mechanisms to ensure that information matches needs
Intelligence User
Source: Arthur Weiss, A brief Guide to Competitive Intelligence
CI Conversion
DataAnalyze
Synthesize
Information
Insight
ExperienceIntelligence
Competitive Advantage
SCIP CI Process Model
CollectData Information
Intelligence Decision Results
Compile
Compile
Compile
Compile
Knowledge
Communicate
Decision Maker
Adapted from William Wilson, NextStep and Timothy W. Powell
Generic CI Process
CI Analytical Scheme
CI Life CycleThe 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
CompetitiveIntelligence
MagazinesNewswiresSEC filingsWeb SitesCensusMarket ResearchNewspapers
Business IntelligenceSoftwareNews PortalsOnline Directories
Vertical PortalsNews PortalsResearch Shops
Competitor ProfilingSWOT AnalysisTrend AnalysisSimulationForecasting
MonitoringTailoringArchiving
CommunicationsBrandMarketing PositionHuman ResourcesSuppliersMergers/AcquisitionFinancial
Product Dev.Business Dev.Public RelationsMarketingInformation
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 AnalysisPatent AnalysisExperience Curve AnalysisProduct Life Cycle AnalysisGrowth Vector AnalysisS-Curve (Technology Life Cycle) Analysis
Primary Sources of DataI. ObservationsII. Marketplace SurveysIII. Interview with Internal ExpertsIV. JournalistsV. Discussion ForumsVI. Internet BlogVII. Industry/Product/General WikiVIII. Professional InstitutesIX. Trade Unions & AssociationsX. CustomersXI. Professionals within the industryXII. Suppliers to the industryXIII. CompetitorsXIV. Stockbrokers XV. Conferences
Secondary Sources of Data1) Directories2) Trade Publications3) Newspapers4) Federal Office of Statistics5) Magazines6) Journals7) Newsletters8) Industry Periodicals9) Government Statements and Reports10) Annual Reports11) Online Databases12) Vendor’s Promotional Material13) Press Releases14) Websites15) Subscription News Feeds
CI Products and Deliverables
i. Early Warning Alertsii. Market Auditsiii. Industry Auditsiv. Customer Profilesv. Competitor Profilesvi. Technology Profilesvii.Supplier Profilesviii.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 CI1. Current Competitor Activities and Strategy Monitoring2. Customers, Vendors and Other External Allied Monitoring3. Operational Performance and Benchmarking4. Product/Service Sales and Marketing Support5. Strategic Probabilities and Possible Futures6. Internal Knowledge Management7. Intellectual Property Exploitation and Protection8. Mergers, Acquisitions, Alliance and Investment Support9. Long-Term Market Prospects & Spotting Weak Signal Blindspots10. Counter-Intelligence & Information Security11. Legislative and Regulatory Activity as well as Impact on Business
Issues12. Executive Decision-Support and Competitive Strategy Planning
Source: Recon Competitive Intelligence Solutions
Friedman’s 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 Rolesi. Primary Researchersii. Secondary Researchersiii. Integratorsiv. Analysts
Supporting Rolesi. Protectorsii. Knowledge Buildersiii. System Buildersiv. Data Buildersv. Decision Makers
Positioning an Intelligent Firm
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 Solution1. 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 & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE); Hon. President, Worldwide Independent Inventors Association; Special Advisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Turnaround Project Director, Consolidated Business Holdings Limited; Lead Consultant/ Partner, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/Partner, D & E; Vice Chairman, Refined Shipping; Director of Programmes & Governing Council Member, 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; Editor-in-Chief & Chairman of Editorial Board, Cost Management Journal; National Executive Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nigeria) and Jones International University (USA). He holds Interim Management Assignments on Boards of Companies as Non-Executive Director.
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