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.

Thank You