Data, information and intelligenceData- Unrelated pieces of information Information- Increase knowledge derived by understanding the relation of data. Intelligence- Organizing information to fully appreciate the implication and impact on the organisation.
Competitive intelligenceA systematic and ethical program for gathering, analyzing, and managing external information that can affect your companys plans, decisions, and operations.
Can’t be fully automatedCompetitive Intelligence requires old fashioned analysis and filtering, somewhat like a detective who wants to solve a case- you cant automate the insights derived form C.I. It takes very intense and serious focus in a very short period of time.
Human factorRegardless of the tools businesses use, the single indispensable element to C.I is the human factor : the smart experience and instinct that can turn huge collection of dead facts into live intelligence that plays a central part in making business decisions
Importance of Competitive intelligence1. Sources of best practices2. Strategy formulation and strategic analysis.3. Isolates performance gaps in relation tocompetion.4. Helps areas of improvement risks threatsopportunities.
Competitive intelligent should answer :1. How is the competitor XYZ is able to grow andcapture market share.2. What new products will competitor ABC developand when will release this products.3. What are the core competencies of competitorDEF?4. Can we compete with new business lines or shouldwe acquire another company to establish our marketshare.
CI should include tracking– Competitors– New technologies– Market trends– Government regulations
Categories of Competitive Intelligence• Market Intelligence – Industry level information on • Trends • Government regulations • Geopolitical issues• Partner Intelligence – Monitoring activities of • Company’s major suppliers • Strategic partners• Competitor Intelligence – Detailed monitoring & analysis of • Key competitors • High-level scans of other competitors • Ongoing identification of new entrants• Technical Intelligence – Monitoring advancements of • Technical developments• Customer/Prospect Intelligence – Determining & monitoring • Key internal influences • Budget cycles • Key focus areas
Tools of C.I1.Environmental mapping - five forces model.2.Organisational Appraisal3. Market Research4. Benchmarking -Imitating the industry leader, comparing resource, capabilities, processes strategy at the industry best practices5.Four Concerns analysis