BEST PRACTICES IN MANAGING A CI FUNCTION June 6, 2007
GOALS AND OBJECTIVES <ul><ul><li>Provide an overview of competitive intelligence, what it is and what it is not  </li></ul...
AGENDA <ul><ul><li>What is Competitive Intelligence </li></ul></ul><ul><ul><li>The Uses of Competitive Intelligence  </li>...
WHAT IS COMPETITIVE INTELLIGENCE? Knowledge and foreknowledge of the competitive environment — the prelude to decision and...
WHAT COMPETITIVE INTELLIGENCE IS NOT <ul><ul><li>Traditional competitive studies </li></ul></ul><ul><ul><li>News clipping ...
–  John Naisbitt We are drowning in information but starved for knowledge. “ ” CHALLENGES IN CI
CI TRANSFORMS DATA/INFO INTO INTELLIGENCE D a t a U n c o n n e c t e d B i t s E m p l o y m e n t a t t h e s i t e d r ...
INTELLIGENCE IS EXTERNAL “ (I)t can be argued that the information revolution has caused managements to be less well infor...
COMPETITIVE INTELLIGENCE IS NOT LIMITED TO COMPETITORS CI Group Corporate Security Threats Technology Developments  & Sour...
AGENDA <ul><ul><li>What is Competitive Intelligence </li></ul></ul><ul><ul><li>The Uses of Competitive Intelligence  </li>...
USES OF COMPETITIVE INTELLIGENCE <ul><li>Defensive </li></ul><ul><ul><li>To provide  early warning  of new competitors or ...
INTELLIGENCE IS ANTICIPATORY –  Wayne Gretzky On the ice, everyone goes to where the puck is. Me? I go to where the puck i...
AGENDA <ul><ul><li>What is Competitive Intelligence </li></ul></ul><ul><ul><li>The Uses of Competitive Intelligence  </li>...
More than 7 our of 10 companies claim to have an organized CI function . . .  . . . But most say they do not have the mean...
ROADBLOCKS TO EFFECTIVE CI Source:  Ostriches and Eagles: Competitive Intelligence Usage and Understanding in US Companies...
AGENDA <ul><ul><li>What is Competitive Intelligence </li></ul></ul><ul><ul><li>The Uses of Competitive Intelligence  </li>...
HOW TO CREATE INTELLIGENCE: THE CI CYCLE <ul><li>Most corporate intelligence programs consist of four broad functions: </l...
KEY INTELLIGENCE TOPICS FOCUS THE CI GROUP TO DELIVER THE HIGHEST VALUE INTELLIGENCE <ul><ul><li>KITs are high-level busin...
<ul><li>What are the strengths, weaknesses, and future strategic intentions of our major competitors? </li></ul><ul><li>Wh...
INVESTING IN DEVELOPING ESSENTIAL CI FUNCTIONS YIELDS COMPETITIVE BENEFITS Provides Early Warning of  Opportunities & Thre...
<ul><li>Communications </li></ul><ul><ul><li>Verbal  </li></ul></ul><ul><ul><li>Written  </li></ul></ul><ul><ul><li>Presen...
CHECKLIST OF SUGGESTED ANALYTICAL TECHNIQUES USED BY CI TEAM <ul><li>Competitor and Industry Analysis </li></ul><ul><ul><l...
AGENDA <ul><ul><li>What is Competitive Intelligence </li></ul></ul><ul><ul><li>The Uses of Competitive Intelligence  </li>...
BEST PRACTICE #1: COMPETITIVE INTELLIGENCE IS ALWAYS LEGAL AND ETHICAL Exploit new employees for proprietary information U...
BEST PRACTICE #2: IDENTIFYING USER NEEDS IS CRITICAL TO THE OVERALL SUCCESS OF PROGRAM <ul><ul><li>CI users are engaged re...
THE FLIP SIDE OF BEST PRACTICES: COMMON MISSTEPS TO AVOID <ul><ul><li>Failure to focus  –  “Get me everything you can on o...
TO SUM UP <ul><ul><li>Competitive intelligence is about providing actionable intelligence, not repackaged data </li></ul><...
The Intelligence to Anticipate.  The Strategy to Lead.   TM Karen Rothwell, Director [email_address]   1-888-447-5501 www....
KEY FINDINGS FROM OSTRICHES AND EAGLES SURVEY (CONT.) <ul><li>Insurance differed from the survey norms in the following ar...
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SLA Best Practices Ci

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This is an excellent overview of best practices in competitive intelligence from the Special Libraries Association.

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  • Building on Joanne and Elio’s slides, I will focus on …
  • Vs. Knowledge Mgt which is not confined to the competitive environment, it can be knowledge on an internal issues. Key is actionable intelligence Second half of slides focus on process - do’s and don’t’s
  • Difference between information and intelligence is that intelligence requires a human element to connect piece of information through experiences.
  • Irony is with the Internet, mobile technology and other tools we have more information available to us, but that doesn’t eqate to knowledge or intelligence
  • Other external factors at play… Think Porter’s Five Forces - looking at all the external forces that shape an industry and help explain the behavior and postioning of its players
  • Help chart strategy
  • Good news… Bad news…. This chart reinforces that point - even though 7/10 companies claim to have a process for gathering and analyzing CI, the ways in which CI is used vary widely, meaning that companies that have a CI process can still be eagles. Twenty-nine percent of respondents admit that they do not have “an organized and systematic way to deliver competitive intelligence,” including 14% of the respondents with more than $1 billion in revenues . More than three-quarters (78%) of all respondents use CI for business development and sales purposes, and almost as many (74%) use it for new product launches.
  • Let’s look at road blocks, these are conditions that big and small firms face. Last two issues mirror earlier point about buy in… Lack of funding leads to resource constraints and lack of adequate training Ask what makes the effective use of CI difficult for these companies. Many of the same conditions as beset IBM in the early 90s.
  • Process is iterative
  • Forces that CI be demand-driven Ensures that CI deliers value
  • All these examples share one trait: they are forward looking. Their answers can feed into strategy development and decisions
  • Summary of overall benefits that a well run CI program can provide include:
  • Communication is critical Analysis techniques on next slide
  • Key is to know what tools to draw on for any given situation.
  • My rule of thumb is never do anything you’d be afraid to read about on the front cover of the newspaper the following day
  • Say no to the data dump Be clear about the scope of each role
  • SLA Best Practices Ci

    1. 1. BEST PRACTICES IN MANAGING A CI FUNCTION June 6, 2007
    2. 2. GOALS AND OBJECTIVES <ul><ul><li>Provide an overview of competitive intelligence, what it is and what it is not </li></ul></ul><ul><ul><li>Description of how competitive intelligence is used within an organization </li></ul></ul><ul><ul><li>Competitive Intelligence Usage Survey Results </li></ul></ul><ul><ul><li>Instruction on the basics of a competitive intelligence process </li></ul></ul><ul><ul><li>Overview of best practices from our experiences with clients in managing a competitive intelligence function </li></ul></ul>
    3. 3. AGENDA <ul><ul><li>What is Competitive Intelligence </li></ul></ul><ul><ul><li>The Uses of Competitive Intelligence </li></ul></ul><ul><ul><li> Competitive Intelligence Usage Survey Findings </li></ul></ul><ul><ul><li>The Competitive Intelligence Process </li></ul></ul><ul><ul><li>Best Practices in Managing the Function </li></ul></ul>
    4. 4. WHAT IS COMPETITIVE INTELLIGENCE? Knowledge and foreknowledge of the competitive environment — the prelude to decision and action. Competitive Intelligence: The organizational means by which information is systematically collected, analyzed, processed and disseminated as intelligence to managers who can act on it. Competitive Intelligence Process:
    5. 5. WHAT COMPETITIVE INTELLIGENCE IS NOT <ul><ul><li>Traditional competitive studies </li></ul></ul><ul><ul><li>News clipping service </li></ul></ul><ul><ul><li>Databases / data warehouses </li></ul></ul><ul><ul><li>Market research </li></ul></ul><ul><ul><li>Knowledge Management </li></ul></ul><ul><ul><li>Unconnected pieces of data </li></ul></ul>
    6. 6. – John Naisbitt We are drowning in information but starved for knowledge. “ ” CHALLENGES IN CI
    7. 7. CI TRANSFORMS DATA/INFO INTO INTELLIGENCE D a t a U n c o n n e c t e d B i t s E m p l o y m e n t a t t h e s i t e d r o p p e d f r o m 1 1 0 0 t o 9 5 0 I n f o r m a t i o n K n o w l e d g e b u i l d b y l o o k i n g a t s e v e r a l d a t a p o i n t s T h e y i m p l e m e n t e d n e w l a b o r - s a v i n g t e c h n o l o g y I n t e l l i g e n c e T h e i m p l i c a t i o n s o f t h e o r g a n i z e d i n f o r m a t i o n T h i s g i v e s t h e m t h e a b i l i t y t o ノ
    8. 8. INTELLIGENCE IS EXTERNAL “ (I)t can be argued that the information revolution has caused managements to be less well informed than they were before . . . (T)he most important changes affecting an institution today are likely to be the outside ones, about which present information systems offer few clues.” — Peter Drucker, “A Survey of the Next Future,” The Economist , 11/3/01
    9. 9. COMPETITIVE INTELLIGENCE IS NOT LIMITED TO COMPETITORS CI Group Corporate Security Threats Technology Developments & Sources Political, Economic, & Social Forces Markets & Customers Competitor Capabilities, Plans, & Intentions Industry Structure & Trends
    10. 10. AGENDA <ul><ul><li>What is Competitive Intelligence </li></ul></ul><ul><ul><li>The Uses of Competitive Intelligence </li></ul></ul><ul><ul><li> Competitive Intelligence Usage Survey Findings </li></ul></ul><ul><ul><li>The Competitive Intelligence Process </li></ul></ul><ul><ul><li>Best Practices in Managing the Function </li></ul></ul>
    11. 11. USES OF COMPETITIVE INTELLIGENCE <ul><li>Defensive </li></ul><ul><ul><li>To provide early warning of new competitors or disruptive technologies </li></ul></ul><ul><li>Offensive </li></ul><ul><ul><li>To spot new markets or opportunities ahead of competitors </li></ul></ul><ul><li>Short-Term </li></ul><ul><ul><li>To determine how a key competitor will price or position a new product or service </li></ul></ul><ul><li>Long-Term </li></ul><ul><ul><li>To forecast the viability and attractiveness of a future market </li></ul></ul><ul><li>Intelligence is forward-looking, predictive, and actionable </li></ul>
    12. 12. INTELLIGENCE IS ANTICIPATORY – Wayne Gretzky On the ice, everyone goes to where the puck is. Me? I go to where the puck is going to be. “ ”
    13. 13. AGENDA <ul><ul><li>What is Competitive Intelligence </li></ul></ul><ul><ul><li>The Uses of Competitive Intelligence </li></ul></ul><ul><ul><li> Competitive Intelligence Usage Survey Findings </li></ul></ul><ul><ul><li>The Competitive Intelligence Process </li></ul></ul><ul><ul><li>Best Practices in Managing the Function </li></ul></ul>
    14. 14. More than 7 our of 10 companies claim to have an organized CI function . . . . . . But most say they do not have the means, interest, or understanding to use it properly. Source: Ostriches and Eagles: Competitive Intelligence Usage and Understanding in US Companies , Outward Insights, February 2005 SURVEY SAYS…
    15. 15. ROADBLOCKS TO EFFECTIVE CI Source: Ostriches and Eagles: Competitive Intelligence Usage and Understanding in US Companies , Outward Insights, February 2005
    16. 16. AGENDA <ul><ul><li>What is Competitive Intelligence </li></ul></ul><ul><ul><li>The Uses of Competitive Intelligence </li></ul></ul><ul><ul><li>Competitive Intelligence Usage Survey Findings </li></ul></ul><ul><ul><li>The Competitive Intelligence Process </li></ul></ul><ul><ul><li>Best Practices in Managing the Function </li></ul></ul>
    17. 17. HOW TO CREATE INTELLIGENCE: THE CI CYCLE <ul><li>Most corporate intelligence programs consist of four broad functions: </li></ul><ul><ul><li>Planning and direction : management and oversight of intelligence to ensure a demand-driven, needs-based program. </li></ul></ul><ul><ul><li>Information collection : exploiting secondary and primary (human) sources for information, observations, and insights. </li></ul></ul><ul><ul><li>Analysi s : interpreting information, drawing conclusions, identifying implications, and making strategic recommendations. </li></ul></ul><ul><ul><li>Reporting : disseminating finished intelligence products, in time, to those managers with the responsibility and authority to act on the information. </li></ul></ul>Analysis Information Collection Planning & Direction Needs Decision Makers Other Users The Intelligence Cycle: Each step is necessary and adds value Report & Inform
    18. 18. KEY INTELLIGENCE TOPICS FOCUS THE CI GROUP TO DELIVER THE HIGHEST VALUE INTELLIGENCE <ul><ul><li>KITs are high-level business concerns upon which management must take action </li></ul></ul><ul><ul><li>Define KITs based on the critical decisions that must be made </li></ul></ul><ul><ul><li>Provide direction to the competitive intelligence effort and overall strategy </li></ul></ul><ul><ul><li>Improve the quality and timeliness of decisions; prevent surprise through early warning </li></ul></ul>Definition Management Role Purpose Benefit
    19. 19. <ul><li>What are the strengths, weaknesses, and future strategic intentions of our major competitors? </li></ul><ul><li>What new, or non-traditional, competitors could enter our key markets? </li></ul><ul><li>What new technologies are emerging that could impact our business? </li></ul><ul><li>What are the emerging legislative or regulatory changes that could have a significant impact on our customers, products, and services? </li></ul><ul><li>What M&A or JV activity might be on the horizon and what are its implications for our company’s products and services? </li></ul>SAMPLE KEY INTELLIGENCE TOPICS
    20. 20. INVESTING IN DEVELOPING ESSENTIAL CI FUNCTIONS YIELDS COMPETITIVE BENEFITS Provides Early Warning of Opportunities & Threats Collect Data Prepare Report & Disseminate Analyze & Forecast Essential Functions Primary Benefits Supports Strategic Decision-Making Process Supports Tactical and Operations Decisions Assesses and Monitors Competitors Supports Strategic Planning & Strategy Processes
    21. 21. <ul><li>Communications </li></ul><ul><ul><li>Verbal </li></ul></ul><ul><ul><li>Written </li></ul></ul><ul><ul><li>Presentation </li></ul></ul><ul><li>Project Management </li></ul><ul><ul><li>Planning </li></ul></ul><ul><ul><li>Implementation </li></ul></ul><ul><ul><li>Monitoring </li></ul></ul><ul><li>Leadership & People Management </li></ul><ul><ul><li>Strategic Thinking </li></ul></ul><ul><ul><li>Coaching </li></ul></ul><ul><ul><li>Team Building </li></ul></ul><ul><li>CI Specific </li></ul><ul><ul><li>Ethics and Legal Guidelines </li></ul></ul><ul><ul><li>Research Planning </li></ul></ul><ul><ul><li>Tradeshow Management </li></ul></ul><ul><ul><li>Analysis Techniques </li></ul></ul>RECOMMENDED CI SKILLSETS
    22. 22. CHECKLIST OF SUGGESTED ANALYTICAL TECHNIQUES USED BY CI TEAM <ul><li>Competitor and Industry Analysis </li></ul><ul><ul><li>SWOT Analysis </li></ul></ul><ul><ul><li>Porter’s 5 Forces Model </li></ul></ul><ul><ul><li>Four Corners Analysis </li></ul></ul><ul><ul><li>Competitor Benchmarking </li></ul></ul><ul><ul><li>Competitor Response Modelling </li></ul></ul><ul><ul><li>WIN/LOSS Analysis </li></ul></ul><ul><ul><li>Value Chain Analysis </li></ul></ul><ul><li>Forecasting </li></ul><ul><ul><li>Early Warning Indicator Development </li></ul></ul><ul><ul><li>Hypothesis-based Tools </li></ul></ul><ul><ul><li>War Gaming </li></ul></ul><ul><ul><li>Scenario Planning </li></ul></ul><ul><li>Financial </li></ul><ul><ul><li>Financial Forensics </li></ul></ul>
    23. 23. AGENDA <ul><ul><li>What is Competitive Intelligence </li></ul></ul><ul><ul><li>The Uses of Competitive Intelligence </li></ul></ul><ul><ul><li> Competitive Intelligence Usage Survey Findings </li></ul></ul><ul><ul><li>The Competitive Intelligence Process </li></ul></ul><ul><ul><li>Best Practices in Managing the Function </li></ul></ul>
    24. 24. BEST PRACTICE #1: COMPETITIVE INTELLIGENCE IS ALWAYS LEGAL AND ETHICAL Exploit new employees for proprietary information Use illegal methods Compromise customer proprietary information Conduct false job interviews Misuse consultants or agents Misrepresent ourselves We will not ...
    25. 25. BEST PRACTICE #2: IDENTIFYING USER NEEDS IS CRITICAL TO THE OVERALL SUCCESS OF PROGRAM <ul><ul><li>CI users are engaged regularly to understand their intelligence requirements </li></ul></ul><ul><ul><ul><li>These requirements are used to focus CI efforts and resources </li></ul></ul></ul><ul><ul><li>Efforts are focused primarily on issues management has identified as threatening </li></ul></ul><ul><ul><ul><li>But, CI has an obligation to alert management to emerging issues </li></ul></ul></ul><ul><ul><li>Management regularly shares its actions and decisions with CI producers </li></ul></ul>
    26. 26. THE FLIP SIDE OF BEST PRACTICES: COMMON MISSTEPS TO AVOID <ul><ul><li>Failure to focus – “Get me everything you can on our competitors.” </li></ul></ul><ul><ul><li>Not linking CI to decisions </li></ul></ul><ul><ul><li>Placing the CI team too far from decision makers </li></ul></ul><ul><ul><li>Focusing only on competitors </li></ul></ul><ul><ul><li>Neglecting early warning </li></ul></ul><ul><ul><li>Letting ad hoc tactical requests overwhelm the CI effort </li></ul></ul><ul><ul><li>Confusing the intelligence function with market research or knowledge management </li></ul></ul>
    27. 27. TO SUM UP <ul><ul><li>Competitive intelligence is about providing actionable intelligence, not repackaged data </li></ul></ul><ul><ul><li>Competitive intelligence is successful when it is driven by management’s top business needs and decisions </li></ul></ul><ul><ul><li>While all organizations are different, there are some common elements to successful CI programs including: ongoing dialogue with management, a focus on Key Intelligence Topics and adherence to ethical and legal guidelines </li></ul></ul><ul><ul><li>The competitive intelligence process should be structured around the intelligence life cycle: planning and direction, information collection, analysis and reporting </li></ul></ul>
    28. 28. The Intelligence to Anticipate. The Strategy to Lead. TM Karen Rothwell, Director [email_address] 1-888-447-5501 www.outwardinsights.com [email_address]
    29. 29. KEY FINDINGS FROM OSTRICHES AND EAGLES SURVEY (CONT.) <ul><li>Insurance differed from the survey norms in the following areas: </li></ul><ul><ul><ul><li>1. Most likely to make intelligence an integral part of its strategic planning process (100% vs. 85% norm), the best of all industry groups. </li></ul></ul></ul><ul><ul><ul><li>2. More likely to make CI an integral part of operational or tactical decisions such as business development/sales (86% vs. 78% norm) and strategic decisions such as R&D planning and execution ( 71% vs. 55%). </li></ul></ul></ul><ul><ul><ul><li>3. More likely to use CI to anticipate and thwart competitor strategies (71% vs. 64% norm). </li></ul></ul></ul><ul><ul><ul><li>4. Most likely to integrate likely competition reactions into plans for launching new products and services most of the time (72% vs. 40% norm), the highest of all the industry groups. </li></ul></ul></ul>

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