Competitive Intelligence

510 Pages·2015·3.73 MB·English

by  Amit Johri

Competitive Intelligence
Millennium Intelligence for Winning Businesses
Amit Johri Prof. Dr. Akshai Aggarwal
Director,CSC Knowledge Systems, Vice Chancellor,
ComputerSoftware Consultants, Gujarat Technological University,
Baroda. Ahmedabad.
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Preface
Companies operating intoday’sunpredictableroller-coaster economy haveincreasingly turned to
COMPETITIVE INTELLIGENCE (CI) as an effective means of building and maintaining an edge.
Competitive Intelligence is critical for making smarter business decisions and reducing risks when
formulating strategies, leading to more profits and fewer mistakes. Businesses would benefit by
changing their perspective towards Competitive Intelligence from being anitem of expenditure to that
ofaninvestment whichgivesimmediate value.
Indianindustry, initsmarchtowards trueglobalization, hasclearlyunderstood thesignificance of
being competitive. The need for getting trained in the basic techniques of CI would now emerge as a
necessityasIndiareinforces itseffortstobecome agreatpower,challengingtheglobalcompetitors.
“Tomorrow when India will be ready to lead the world, it will need the right infrastructure and
platforms toaddress,connect,showcaseandgreettheworld”.
CI is the identification of strategically important corporate intelligence needs and the process of
resolving those needs through ethical information – gathering, analysis and the presentation of such
analysis toclients (internal orexternal). Incomplex environments, successful firms do not simply find
asuccess formula or aset ofcompetencies andbank/capitalize on them. Successful firms aredynamic
and often non-linear. Successful firms, in such environments, are those that can continually discover
competitive opportunities. It is the stream of competitive opportunities that allow an organization to
continually renew itself in harmony with the competitive environment. Simply put, successful firms
differentiate themselves from other firms by being continually different. Competitive Intelligence is
thecriticaldriverofinformationthatwillallowafirmtoadaptpreemptively tothefutureenvironment.
The need to turn competitor information into actionable intelligence has never been greater. CI
professionals are pledged to providing their companies with the instruments needed to stay fast,
focused and flexible in the pursuit and maintenance of competitive advantage. Competitive
Intelligence has a broad scope that it can use information related to almost any product or activity or
information on recentindustry trends orissues or about geo-political indications. With effective useof
CI,firms canoutwit, outmanoeuvreandoutperformcurrent, emergingandpotentialcompetitors.
Welcome tothis book asacontribution tothegrowing body ofwork focused on theconvergence
ofnewtechnologies, newhumanpossibilities andneworganizationalformsandprocesses.
Competitive Intelligence does not just mean a trip to the local store to see the competitor’s
finished products –itmeans gathering business information togainanadvantage inalegalandethical
manner.
This book provides aunique opportunity togauge wherethe fieldof CIstands today and tolearn
how you might benefit from many of its current successful programs and professional practices. This
book teaches what CI is, why a company needs to have a successful intelligence program, where to
placeanintelligence program, completely explains theinsandouts of CI,andwhy yourcompany will
act faster and more aggressively with CI and what sources to use and not to use for intelligence
gathering. Technology, Analysis and Security issues are also identified and explored. CI is a
management tool that results in numerous benefits. If you are a Senior level Executive or operate a
business and you are not tapping the power of CI to improve your decision making –you aremissing
apotentadvantage.
In business, as in war, politics or games, you cannot operate effectively unless you know what
others are doing. Many businesses are inward looking. It is the process of looking outwards which is
discussed in this book. It shows how to gain a total understanding of the market in which a company
operatesandthecompetitors therein.This ismuchmorethanaquestion ofgathering facts andfigures.
It involves understanding the strategy and motivations of competitors and customers, assessing the
factors that make a market, what it is today and how these are likely to develop in the future. In
business, unlike in games, the rules change all the time. These changes are not formally announced,
you have to find out about them for yourself. This book shows you how. To give atrue picture of the
realworld, we don’t need numbers, instead opinions and prejudices, motivation and emotion, conflict
andchange,arerequired tobeunderstood.
For students and those just entering the field, there are examples of how CI practitioners go about
theirworkandeducationaladviceonhowbesttolearnthetrade.ForexperiencedCIpractitionerslooking
fornewandbetterwaystodotheirjobsmoreproficiently,thereareexamplesofhowothershavehandled
manyoftheproblemsweallfacefromtimetotime.AndforthoseeithermanagingaCIprogramorabout
tostartone,thereissageadviceonhowtoapproachthetaskaswellasrunitsuccessfully.
Among the“lessons learned”fromsuccessful CIeffortsistheorganized andsystematic approach
taken by both CI program managers and practitioners alike – the professional application of what has
been traditionally called the Intelligence cycle, i.e., needs identification, secondary and primary
research, intelligence analysis and production and the dissemination or delivery of the finished
intelligence products to the ultimate users responsible for taking appropriate actions. With differing
sources, methods and delivery styles, the CI professional focus their total effort and intellect on
meeting the expressed need of their client – otherwise the whole effort would be useless. Unless you
areabletounderstand itanduseit,itisnotintelligence, justmoreinformation.
Another very useful “lesson learned” is that contemporary user’s needs for more timely
and authentic CI has shifted research emphasis to human sources and primary research.
Secondary sources still contribute value and utility, but this shift is causing the CI profession to
enhance its primary research and interpersonal skills. This trend also highlights another very
important facet of CI research, i.e., the need to access and process the constantly growing
volume of secondary source intelligence information more proficiently, which in turn will
require both better Information Technology and the professional skills necessary to use such
advanced IT.
Do you want to outsmart others? Do you like to stay different from others? Do you want to
stand out from the pack? Do you want to get out of the rat race? Do you want to achieve
success through right rules and strategies?
If yes, then here is a book, equipping you with secrets and strategies to face several
challenges and succeed in this complex and competitive world. After reading this book, you
will not brood over problems; rather you will look at the solutions. It guides and grooves you in
the right slot as a successful leader.
Wehavealways considered books tobeagreat sourceof learning and enjoyment. This book isa
true learning experience, particularly for those professionally interested in the world of Competitive
Intelligence and its research and analysis work. It has much to offer to both those new to the CI field
andtheoldprofessional whowantstolearnnewthings aboutthisprofession.
EnjoyandLearn!
Amit Johri
Akshai Aggarwal
Acknowledgements
Although this book appears under the name of two authors, but many people have contributed to
itspublication.
The genesis of a book of this sort is to be found, of course, in activities far earlier than the
publisher’s invitation to write a book on it. It was our academic-industry interaction, the Innovation
Council at GTU and the delivery of courses in Competitive Intelligence to the
Technology/Management students for their skill development andindustry readiness, which interested
us in the field and with the research and analysis done by us over a period of time looking at the
businessesworldover,madeusdecideonwriting abookon‘CompetitiveIntelligence’.
In the coming years, new technologies, global economics and many other factors will present
innumerable changes for business and society to navigate. Starting now, leaders need to be more
flexible,responsiveanddecisive thaneverbefore.
In order to survive, succeed and win, businesses need to look ahead. It is this endeavor and
objectivewith whichwewouldliketoserveourreadersthroughthisbook.
We would like to thank our publishers Himalaya Publishing House Pvt. Ltd., and specially Shri
K.N. Pandey, Shri Niraj Pandey and Shri Anuj Pandey for the encouragement, insight and strong
supportformanyyears.
WepraiseMs.Nimisha andMs.Archana foroverseeing production forthis project and Shri S.K.
Srivastava, Sales Manager – HPH, Shri Rajesh Naidu, Manager HPH, Chennai for providing their
inputsontherequirement ofthisbookbyUniversities.
We have also been blessed with huge good fortune in enjoying the help of many other talented
people. They have given so generously of their time, knowledge, skill and uplifting encouragement in
assisting us before and during this project and we now wish to repay a little of what we owe them by
expressingouradmirationandaffectionforthemandourgratitudefortheirsupport.
Thanks to all our students of Business Administration, Management, Computer Applications,
Technology and Engineering for providing us an excellent teaching experience and enabling an
equallyinnovative learningexperience.
The final tribute and appreciation, however is reserved for our families without whose support,
co-operation and understanding, this would not have been possible. Their inspiration and love has
been instrumental in providing us the necessary support all through our professional careers. Our
special thanks to Mrs. Shakuntala Aggarwal whose able insights in the practice of CI, her practical
knowledgeandhercontinuousguidancehasseenthisproject throughverysuccessfully.
Wesincerely hope that this book on “Competitive Intelligence” will meet the desired demands
ofallourvalued readers.
All those named above have helped realize the publication of this book, but naturally the
responsibilityforanyerrorsormisjudgments withinitaresolelyours.
Amit Johri
Akshai Aggarwal
Book Objectives and Learning Outcomes
This is abook about the management of CI. This book should enhance any organization’s ability
toutilizeCI,andmoreimportantly tocompeteinanincreasingly competitiveglobalmarketplace.
There are generally no happy surprises in today’s marketplace. Management failures are
frequently associated with the inability to anticipate rapid changes in markets, respond to new and
proliferating competition, or re-orient technologies and the strategic direction of their business toward
changing customer needs and new industry standards. A good analogy is to consider the Titanic’s
senior decision makers. Senior crew members could have benefitted from early warnings about the
location,shapeandsizeoftheicebergthatclaimedtheirshipandmost oftheirlives.
Surprisingly, many of today’s supposedly well-educated business decision makers choose to
ignore competitor and market intelligence warnings. Perhaps, this intelligence is flawed or their
assessment of this intelligence is ineffective. These decision makers are the Titanic’s business
equivalents,andwilltakethemselvesandtheirpassengers downwith theirships.
CI origins date back to Confucius in China and Moses in the West. Intelligence and
Competitivenesshavealong associationinwarfare,andisgainingimportance inbusiness.
CI often rings up images of James Bond types using an array of sophisticated gadgets to
eavesdroponthebusinesscompetition.
AT & T, Coca Cola, Eastman Kodak, Ford, GE, Hewlett Packard, IBM, Intel, Kelloggs, 3M,
Merck, Microsoft, Motorola, Proctor & Gamble, Royal Dutch Shell and Xerox are among the best
performersofCI.
High stake industries – aerospace, biotechnology, chemicals, computer and information services,
pharmaceuticalsandtelecommunicationsuseCIextensively.
Although CI can clearly be a substantial benefit to firms in these industries, it can be used with
equivalent value inless “sexy”industries such asconsumer products, electricor gas utilities, financial
services,manufacturing andbasicresources.
Organizations and organizational units increasingly employ CI to support decision making,
management and to build and sustain competitive advantage. As the formal practice of CI has grown
in adoption and sophistication, information professionals are often charged with intelligence-related
responsibilities.
Someimportant areastobecovered inthisbookinclude:
(cid:404) Competitive Intelligence Models
(cid:404) Functions andPractice
(cid:404) TheroleofinformationprofessionalsinCIandthemanagementofCI
(cid:404) Intelligence legalandethicalconsiderations
(cid:404) Identifying intelligenceneeds
(cid:404) Intelligence projectmanagement
(cid:404) Researchmethods
(cid:404) Analysis,production anddissemination
(cid:404) Theuseofintelligence
(cid:404) Intelligence sources andtools
(cid:404) Managing theintelligence function andtheevolutionofCI
(cid:404) Demonstrate knowledgeofprintandelectronicinformation retrievalprocedures
(cid:404) Analysis, Synthesis and Communication of information and knowledge in a variety of
formats.
(cid:404) Recognize existing and potential problems in a workplace and devise strategies to resolve
them
(cid:404) Demonstrate leadershipabilities
(cid:404) Analyze information problems and develop solutions, drawing from a wide range of
informationtechnology tools andpractices.
Inachievingtheseobjectives,readerswill:
(cid:404) Become conversantinCI,strategicandcorporate/organization termsandconcepts.
(cid:404) Develop more in-depth knowledge of and anticipate issues impacting organizational
effectivenessandcompetitiveness.
(cid:404) Develop anawareness ofissues andtrends inthefieldofCI,including research,analysis and
processmanagement.
(cid:404) Knowhowtotakeadvantage ofopportunities forinformation professionalsinthefieldofCI.
(cid:404) Know the range of CI tools and services; as well as how to evaluate, select and use them
effectively.
(cid:404) Gainfamiliaritywith CI-relatedprojectsanddeliverables.
(cid:404) Identify and employ professional tools, news and resources to gain awareness and build
uponskills.
(cid:404) Learn how to protect an organization’s competitive and knowledge assets from internal and
externalthreats.
(cid:404) Elevateproblem solving throughtargetedanalysis.
The Body of Knowledge (BOK) for CI
The purpose of the CI BOK is to create a “compendium of current and leading-edge
competencies drawn on by CI professionals and their organizations”. Competencies in this BOK are
definedas:
(cid:404) “Clustersofskills, abilitiesandbehaviorsrequiredforsuccessful performance inthejob”.
(cid:404) “Competencies thatsetCIapartfromrelatedprofessionaldisciplines”.
Dr.John Prescott, University ofPittsburg, ChairoftheBOKTaskForcementioned fourprincipal
applicationsfortheBOKinCIproducts andprograms.
1.CompetitiveIntelligence Careers
The BOK should serve as the foundation for designing job descriptions, interviewing guides,
careerpaths,etc.
2.Certificationand Training
The BOK should serve as the foundation for designing a certification program and CI training
programs.
3.Academic Curriculum
TheBOKshould assistCollegesandUniversitiesindevelopingacademiccurriculum.
4.SCIPPublications
TheBOKshould provideaframeworkfordeveloping articles forCIM,JCIM,SCIPOnline,etc.
The SCIP BOK initiative was initiated in December 2007 under the leadership of Prof. John
Prescott. Ateamofvolunteers went through asolid, iterative process todefineandverifytheBOKfor
CIprofessionals.
Allinall,theBOKconsistsof81competenciescategorizedin7competencedomains.
TheCIBOKdefines 7knowledge areas,whichgrouptogether relatedsetoftasksandtechniques.
Each of these tasks and techniques describe the typical knowledge, skills, processes and deliverables
thattheCIprofessionalisrequiredtobeabletoperformthosetaskscompetently.
ManagingtheCIFunction
ImplementingCITasks
1.DesignandManagetheCIfunction 4.ManageCIProjects
3.Promoteand 2.Implement 6.Conduct 5.Conduct
Needs
Incorporate Intelligence Intelligence
Assessment
CIthroughout Collectionand
andManage Analysis
the Manage
Client and Delivery
Information
Organization Relationships Processes
Resources
EvolutionaryCICompetency Domains
7.AdvancetheevolutionoftheCIfunction,
CIskillsetsand theCIprofession
Figure:SCIPBOKCompetencies–7Domains