Competitive Intelligence Gathering Market Intelligence – Framework, Process & Tools Anand Subramaniam
<ul><li>“ In  Business at the Speed of Thought” </li></ul><ul><li>Bill Gates wrote: “…the most meaningful way to different...
Highlights <ul><li>What & Why - Competitive Intelligence </li></ul><ul><li>Success Criteria </li></ul><ul><li>Framework </...
What & Why  Competitive Intelligence (CI)
What is Competitive Intelligence? <ul><li>Competitive Intelligence = Business information to manage and reduce the risk pr...
Firm wide Implications <ul><li>Improve your organisation’s knowledge of its respective markets, of emerging technologies a...
Success Criteria <ul><li>Understand business needs and objectives ( decision-makers needs / wants/ preferences, metrics fo...
CI - Framework
CI Framework
Situational Dimension <ul><li>How complex is the environment? </li></ul><ul><li>How rapidly is it changing? </li></ul><ul>...
Organisational Strategies <ul><li>Porter </li></ul><ul><ul><li>Differentiation </li></ul></ul><ul><ul><li>Cost Leadership ...
Managerial Traits <ul><li>Senior Managers scan the industry </li></ul><ul><li>Functional managers scan within and beyond t...
Information Needs <ul><li>Customers, Competitors, Suppliers, Distributors, Retailers </li></ul><ul><li>Political, Economic...
Information Seeking <ul><li>Sources: internal and external; personal and non-personal sources </li></ul><ul><li>Perceived ...
Information Use <ul><li>Scanning information is used for: </li></ul><ul><ul><li>Decision making </li></ul></ul><ul><ul><li...
End Result
CI – Process & Tools
Competitive Intelligence Process Define & Scope  intelligence needed Collate data  from primary & secondary sources Analys...
CI = Bridge Between Information & Action Content Generation Magazines Newswires SEC Filings Web Sites Census Market Resear...
Tools & Techniques <ul><li>Competitor Analysis </li></ul><ul><ul><li>SWOT analysis </li></ul></ul><ul><ul><li>Strategy hyp...
Risks & Opportunities
Risks & Opportunities Operational Risk Compliance Risk Financial Risk Strategic Risk Business Continuity Plan <ul><li>Legi...
Go Forward - Action Plan
Action Plan <ul><li>Decide what part you should play in the CI process </li></ul><ul><li>Think about what value you can br...
<ul><li>“ An organisation's ability to learn, and translate that learning into action rapidly, is the ultimate competitive...
<ul><li>Good Luck </li></ul><ul><li>http://www.linkedin.com/in/anandsubramaniam   </li></ul>
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Competitive Intelligence

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Intelligence

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Competitive Intelligence

  1. 1. Competitive Intelligence Gathering Market Intelligence – Framework, Process & Tools Anand Subramaniam
  2. 2. <ul><li>“ In Business at the Speed of Thought” </li></ul><ul><li>Bill Gates wrote: “…the most meaningful way to differentiate your company from your competition…is to do an outstanding job with information. How you gather, manage and use information will determine whether you win or lose.” </li></ul>
  3. 3. Highlights <ul><li>What & Why - Competitive Intelligence </li></ul><ul><li>Success Criteria </li></ul><ul><li>Framework </li></ul><ul><li>Process, Tools & Techniques </li></ul><ul><li>Risks & Opportunities </li></ul><ul><li>Go Forward – Action Plan </li></ul>
  4. 4. What & Why Competitive Intelligence (CI)
  5. 5. What is Competitive Intelligence? <ul><li>Competitive Intelligence = Business information to manage and reduce the risk presented by internal and external forces </li></ul><ul><li>Competitive Intelligence = The Bridge Between Information and Action </li></ul><ul><li>“ A systematic and ethical program for gathering, analysing and managing external information that can affect your company’s plans, decisions, and operations” </li></ul><ul><ul><li>– Source: Society of Competitive Intelligence Professionals </li></ul></ul><ul><li>An organised business activity that, with proper use, can positively impact your company’s bottom line. It applies to all functional areas </li></ul><ul><ul><li>Both short term and long term </li></ul></ul>
  6. 6. Firm wide Implications <ul><li>Improve your organisation’s knowledge of its respective markets, of emerging technologies and / or trends </li></ul><ul><li>Improve the quality of your products relative to the competition </li></ul><ul><li>Improve communication across your organisation regarding competitive activities </li></ul><ul><li>Enhance confidence in strategic planning/operational decisions in marketing, research, planning, sales and HR </li></ul><ul><li>Fact: </li></ul><ul><ul><li>Research amongst Fortune 500 companies indicates that those placing a high value on CI generally outperform their rivals in Key Performance Indicators (KPIs) </li></ul></ul><ul><ul><ul><li>Gross margin </li></ul></ul></ul><ul><ul><ul><li>Sustained revenue growth </li></ul></ul></ul>
  7. 7. Success Criteria <ul><li>Understand business needs and objectives ( decision-makers needs / wants/ preferences, metrics for success) </li></ul><ul><li>Identify and access unique (re)sources on a regular basis (use secondary sources as a springboard to primary) </li></ul><ul><li>Distinguish between tactical and strategic intelligence (operational effectiveness vs. strategic positioning) </li></ul><ul><li>Manage diverse information resource types and formats </li></ul><ul><li>Synthesise and analyse information (external and internal - recognise patterns, Interpret / clarify conflicting data) </li></ul><ul><li>Develop a system for continuous monitoring (trends, competitors) </li></ul><ul><li>Disseminate intelligence to decision-makers (manage deliverables, expectations, provide insights) </li></ul><ul><li>Facilitate change (understand the business before making recommendations) </li></ul><ul><li>Measure success on an ongoing basis </li></ul>
  8. 8. CI - Framework
  9. 9. CI Framework
  10. 10. Situational Dimension <ul><li>How complex is the environment? </li></ul><ul><li>How rapidly is it changing? </li></ul><ul><li>How strategic is the environment? </li></ul>
  11. 11. Organisational Strategies <ul><li>Porter </li></ul><ul><ul><li>Differentiation </li></ul></ul><ul><ul><li>Cost Leadership </li></ul></ul><ul><ul><li>Focus </li></ul></ul><ul><li>Organisational strategy is linked to the style and scope of environmental scanning </li></ul>
  12. 12. Managerial Traits <ul><li>Senior Managers scan the industry </li></ul><ul><li>Functional managers scan within and beyond their specialisations </li></ul>
  13. 13. Information Needs <ul><li>Customers, Competitors, Suppliers, Distributors, Retailers </li></ul><ul><li>Political, Economic, Social-cultural, Technological factors (PEST) </li></ul><ul><li>Scanning is focused more on market-related sectors of the environment </li></ul>
  14. 14. Information Seeking <ul><li>Sources: internal and external; personal and non-personal sources </li></ul><ul><li>Perceived source accessibility and quality </li></ul><ul><li>A wide range of sources is used, but personal sources are important </li></ul>
  15. 15. Information Use <ul><li>Scanning information is used for: </li></ul><ul><ul><li>Decision making </li></ul></ul><ul><ul><li>Sense-making </li></ul></ul>
  16. 16. End Result
  17. 17. CI – Process & Tools
  18. 18. Competitive Intelligence Process Define & Scope intelligence needed Collate data from primary & secondary sources Analyse data & create scenarios Disseminate intelligence Review if data delivered the required intelligence Competitive Intelligence Decision-making Process
  19. 19. CI = Bridge Between Information & Action Content Generation Magazines Newswires SEC Filings Web Sites Census Market Research Newspapers Internal & External Experts Vertical Portals News Portals Research Shops Business Intelligence Software News Portals Online Directories Monitoring Tailoring Archiving Competitor Profiling SWOT Analysis Trend Analysis Simulation Forecasting Communications Brand Marketing Position Human Resources Suppliers Mergers/Acquisitions Financial Product Dev. Business Dev. Public Relations Marketing Information ShiftCentral Inc, 2002 www.shiftcentral.com Information Aggregation Strategy Business Action Competitive Intelligence
  20. 20. Tools & Techniques <ul><li>Competitor Analysis </li></ul><ul><ul><li>SWOT analysis </li></ul></ul><ul><ul><li>Strategy hypotheses and alliance analysis </li></ul></ul><ul><ul><li>Competitor’s plans and intentions </li></ul></ul><ul><ul><li>Competitor benchmarking </li></ul></ul><ul><ul><li>Competitor response modelling </li></ul></ul><ul><li>Market Intelligence </li></ul><ul><ul><li>Product / Market Analysis </li></ul></ul><ul><ul><li>Win/loss analysis </li></ul></ul><ul><ul><li>Customer Segment Analysis </li></ul></ul><ul><ul><li>Competitor-customer value chain analysis </li></ul></ul><ul><li>Financial Analysis </li></ul><ul><ul><li>Cash flow analysis </li></ul></ul><ul><ul><li>Cost analysis – ABC / EVM </li></ul></ul><ul><ul><li>Ratio analysis </li></ul></ul><ul><ul><li>Credit/debt analysis </li></ul></ul><ul><ul><li>Sustainable growth rate analysis </li></ul></ul><ul><li>Organisation Analysis </li></ul><ul><ul><li>Organisation and personality assessment </li></ul></ul><ul><ul><li>Success / Failure Analysis </li></ul></ul><ul><li>Technology Assessment </li></ul><ul><ul><li>R&D, product and manufacturing analysis </li></ul></ul><ul><ul><li>Technology forecasting </li></ul></ul><ul><ul><li>Patent analysis </li></ul></ul><ul><li>Environmental Assessment </li></ul><ul><ul><li>Regulatory and legislative analysis </li></ul></ul><ul><ul><li>Political economic assessment </li></ul></ul><ul><ul><li>Country risk analysis </li></ul></ul><ul><li>Forecasting </li></ul><ul><ul><li>Statistical and econometric analysis </li></ul></ul><ul><ul><li>Trend analysis and projection </li></ul></ul><ul><ul><li>Quantitative, qualitative, and stochastic </li></ul></ul><ul><ul><li>Scenario analysis </li></ul></ul><ul><li>Industry Analysis </li></ul><ul><ul><li>Industry Segment Analysis </li></ul></ul><ul><ul><li>Strategic Maps </li></ul></ul><ul><ul><li>Structural and trend analysis </li></ul></ul><ul><ul><li>Distribution strategy analysis </li></ul></ul><ul><ul><li>Share/growth matrices </li></ul></ul><ul><ul><li>VRM / SCOR Analysis </li></ul></ul><ul><ul><li>Counter Intelligence </li></ul></ul>
  21. 21. Risks & Opportunities
  22. 22. Risks & Opportunities Operational Risk Compliance Risk Financial Risk Strategic Risk Business Continuity Plan <ul><li>Legislative changes (health & safety, employment, taxation) </li></ul><ul><li>Regulatory changes </li></ul><ul><li>Impact of corporate social responsibility (e.g. better food labelling to prevent obesity, “healthy” disposal of waste) </li></ul><ul><ul><li>Daily transactions </li></ul></ul><ul><ul><li>Cash-flow implications </li></ul></ul><ul><ul><li>Customer/supplier credit facilities </li></ul></ul><ul><ul><li>Impact of interest / foreign exchange </li></ul></ul><ul><ul><li>Debt repayment rates </li></ul></ul><ul><ul><li>General competitiveness </li></ul></ul><ul><ul><li>Effects of Mergers and Acquisitions activities </li></ul></ul><ul><ul><li>Changes in market conditions (emerging technologies, demand vs. supply) </li></ul></ul><ul><ul><li>Research and development </li></ul></ul><ul><ul><li>Industry changes </li></ul></ul><ul><ul><li>Competitive shifts </li></ul></ul><ul><ul><li>New entrants </li></ul></ul><ul><ul><li>IT systems and data protection </li></ul></ul><ul><ul><li>Supply chain </li></ul></ul><ul><ul><li>Accounting controls </li></ul></ul><ul><ul><li>Recruitment and retention </li></ul></ul><ul><ul><li>Regulatory compliance </li></ul></ul>Evaluate – High, Medium, Low : Consequence vs. Probability
  23. 23. Go Forward - Action Plan
  24. 24. Action Plan <ul><li>Decide what part you should play in the CI process </li></ul><ul><li>Think about what value you can bring to the CI process </li></ul><ul><li>Present and discuss your plans with senior management or the CI manager if you have one </li></ul><ul><li>Partner with other groups to achieve success </li></ul><ul><li>Remember, no one group can do it all! </li></ul>
  25. 25. <ul><li>“ An organisation's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.” </li></ul><ul><li>- Jack Welch, </li></ul><ul><li>Former General Electric Chairman and CEO </li></ul>
  26. 26. <ul><li>Good Luck </li></ul><ul><li>http://www.linkedin.com/in/anandsubramaniam </li></ul>

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