competitive intelligence presentation

8/3/2019 Competitive Intelligence Presentation

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www.ReconG2.comReconG2Competitive Intelligence for the Need to Know Enterprisewww.AuroraWDC.comAurora WDC

Competitors, Customers & Technologies Are Complex Interdependencies

Intelligence is About Seeing Clearly Emerging Market Phenomena


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LaurieGonsowski

Primary Orientation on

Producing Impact Analysis forSector Intelligence

Communities in Healthcare &Technology

Project DesignationSENTINEL


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JayHale

Primary Orientation on

Intelligence CommunityManagement Supporting

Impact Analysis for SectorIntelligence Communities inHealthcare & Technology

Project DesignationRECONG2


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Three Intelligence Trends

Organizational Acculturation Everyone in the

Firm is a Virtual Member of the Intelligence Team

Corporate Governance Board-level Priority forEnsuring Reliability of the Earnings Forecast(Vioxx/Celebrex Impact, SarbOx 402, etc.)

Disruptive Innovation Predicting Outcome ofCompetitive Battles based on Predictable ProductStrategy Dynamics


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CI Has Always Been About BetterDecision-Making

Strategic Decisions

What business are we in and where are newopportunities for growth?

Operational Decisions How do we structure those business units to most

effectively compete for and win market share?

Tactical Decisions Which customers are available to us and how can we

convince them to select us over functional equivalents?


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Deliver, InformDeliver, Inform& Recommend& Recommend

Planning &Planning &DirectionDirection

SecondarySecondaryResearchResearch

Analysis &Analysis &ProductionProduction

PrimaryPrimaryResearchResearch

Tactical Users &Strategic

Decision Makers

Needs

The

Traditional CICycle

Traditional CI Follows a

Disciplined Process for

Information Collection and

Analysis


7/33www.ReconG2.comReconG2Competitive Intelligence for the Need to Know Enterprisewww.AuroraWDC.comAurora WDC

Porters Five Forces Model



Key Intelligence Topics (KITs)

Process of Interactive Dialog withDecision-Makers through KITInterviews; Consists of 3 Protocolsw/Subtle Differences:

Strategic Decisions/Issues

Key Marketplace Players

Early-Warning Topics



Research Collection SourcesWhere does theinformation come from?

1. Primary Research

We may share

customers, prospectsand suppliers who canbe interviewed.

Every company hasknowledgeableemployees with loose

lips.2. Secondary Research

Companies releaseinformation forpromotional, image andregulatory purposes.

No Company Operates in Isolation

Information is exchangedeverywhere money is exchanged.



Analysis is Key

The competitor would make a good acquisition candidate. Its lean &

mean structure would fit well with our current operations.

Intelligence:

The insight that will allow you

to make an informed decision

After gathering more operational information and running a side-by-

side profit & loss analysis, it appears the competitor has become

highly efficient. It exceeds industry standards and has become a best-

in-class facility.

Analysis:

Distilled information

Based on the D&B and the salespersons report, it appears the

competitor has lost business.

Information:A pooling of these bits of facts,

observations and rumors

2001: The D&B report told us that the competitors plant had 100

employees.

2004: One of our salespeople just passed by the competitors plant

and spotted only 30 cars in the lot.

Data:

Scattered bits and pieces of

facts, observations and rumors

The Difference Between Data and Intelligence



Two FundamentalAnalysis Tools

SWOT Analysis

Core Competence


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Strategic Intelligence

Principles of Defensive Warfare Only the market leader should consider playing defense.

The best defensive strategy is the courage to attackyourself.

Strong competitive moves should always be blocked.

Principles of Offensive Warfare The main consideration is the strength of the leader's

position. Find a weakness in the leader's strength and attack at that

point.

Launch the attack on as narrow a front as possible.

Principles of Flanking Warfare A good flanking move must be made into an uncontested

area.

Tactical surprise ought to be an importantelement of the plan.

The pursuit is just as critical as the attack itself. Principles of Guerilla Warfare

Find a segment of the market small enough to defend.

No matter how successful youbecome, never act like the leader.

Be prepared to bug out at a moment's notice.

-- Jack Trout

GuerillaSmall Players

Finding market smallenough to defend Prepared to bug out at

moments notice

FlankingNew Players

Moving intouncontested area

Element of surprise

OffensiveNo 2 or No 3

Avoiding leadersstrengths

Attacking leadersweaknesses

DefensiveMarket Leaders

Attacking themselveswith new ideas

Blocking competitivemoves

The Strategy SquareThe Strategy Square



Growth Vector Analysis

Growth Vector Analysis (GVA) reviews the different product alternatives available to the firm in

relation to its market options, not already being pursued by competitors. Four complimentary

characteristics are used for defining common threads of strategy:

Product-Market Scope specifies particular industries to which a firm confines its position.

Growth Vector indicates the direction a firm is moving relative to current product-market posture (market

penetration, market development, product development and diversification). Competitive Advantage defined as particular properties of individual product markets conveying a strong

market position.

Synergy is the combined effect on the firms resources that is greater than the sum of its parts.

Present Products Improved Products New Products

Existing

Market

Market Penetration Product Extension Product Development

Expanded

Market

Market Extension Market Segmentation /

Product Differentiation

Product Development /

Market Extension

New Market Market

Development

Product/Service Extension

& Market Development

Diversification



Evolutionary Parallels of Intelligencein Business & in Government

Intelligence in Business Originally Evolved from theTransplantation of Government Techniques to the Private Sector

Accelerated with the Privatization of Gov't Sector Intelligence

Professionals after the Cold War ended

Reaction to the New Threat & Surprising Rise of Low-Cost Asian

Competitors Challenging U.S. Post-WWII Industrial Hegemony

Focused on Decision and Policy Support, Transplanting Process

& Nomenclature (KITs/KIQs, the Intelligence Cycle, etc.)

But the Parallels Don't End There...


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Cognitive, Policy & Operational BiasAmong Intelligence Leadership


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The Apparatus Failed to Evolve

Unfortunately, New Threats (al Qaeda)

Emerged on the Geopolitical Stage in the

Vacuum of America's Return to International

Dominance After the End of the Cold War


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Connections in Emergent Phenomena


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Reforms to Create Equilibrium Similarly, in Business, Corporations

which had placed too much Emphasis

on Defensive Competitive Risk

Management found themselves Ill-Equipped for a Market Driven by

Offensive Opportunities for

Innovation

The Resulting Shift in Emphasis

from a Focus on Polar Extremes toEquilibrium & Mode-Switching

between Incisive and Decisive Ends

of the Intelligence Continuum


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Duality Continuum of Intelligence is Both Decisive &

Incisive for Tasking, Sensing & Interpretation

Incisive

Scanning for Trends, there is no

Decision to be madeFramework for Interpretation

Focus on Implications for Reader

Recognize Pattern Vector History

Bottom-Up Exposition

Driven by Weakly Signalled Trends

Outcome is Observation

Emergent & Theoretical

Decisive

Frame of Reference is the

Decision, Less Trend-DependentFramework for Current Analysis

Compares Options & Outcomes

Recommendations and Trust

Top-Down Imposition

Driven by Identifiable Issues

Decision & Action vs. Nariyuki

Factual & Hypothetical


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Different Missions, Different Approaches

Specialist

Slower Production

Less Output, MoreAnalytical

Agenda Driven byContact Network

Lots of SubjectMatter Knowledge

Seeks Explanationof the Subject

Investigative

Very Slow,

Curious, Historical

Little Output,Highly Analytical

Questions OfficialPositions, Listensto Nonspokesmen

Operates OutsideRoutine Agenda ofthe Publisher

Generalist

In a Hurry

Lots of Output,Less Analytical

Agenda Driven bythe Publisher

Little Knowledgeof Subject Matter

Seeks Volume ofPublic Interest


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The Insight Method Take Nothing at Face Value

Get to the Facts at the Heart of an Issue

Explain Difficult Concepts, Dont Write Around It Speak to As Many Relevant People as Possible

Use Simple, Obvious Questions to Open Subjects

Dont Echo Main Source, Find Other Views

Every Company, Person & Issue Has a Historythat Drives Behavior Today

Sunday Times


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Ideal Analyst is More Investigative Journalist than Secret Agent

e.g. Maria Bartiromo (CNBC) Argument/Idea Evangelist

Entrepreneurial Passion

Quick Study with Intense Curiosity

Instinctive but Empirical

Project/Deadline Manager

Librarian/Information Manager

Hard-Core Interviewer

Pattern Recognizant

Great Communicator

Persuasive Position Advocate


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Process of Predicting Industry Change

Signals

of

Change

Strategic Choices

Influencing

Success

Likely Outcome of

Competitive

Battles


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Success Breeds Complacency

It is a classic conundrum for business titans: How

much money and attention should be focused on anew, but growing, operation that is far less

profitable than the core business?

- Prof. Clayton Christensen, The Innovator's Dilemma


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Consumers Hire Products to DoJobs for Them

Concentrate Less on

What Customers Want and

More on What Customers Need


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Disruptive Technology
http://upload.wikimedia.org/wikipedia/en/8/8e/Disruptivetechnology.gif


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Value Chain Evolution Theory

Disruptive Business Models: Vertically Integrating VCto Improve Whats Not Good Enough in thecompanys products and services judged by customers.

Performance Defining Subsystems: Companies mustcontrol all those activities and combinations of activitiesin the value chain that drive the product performancecharacteristics that matter most to customers.

Specialists will seek to control performance driversbased on differences in motivation and skills around amodular interface in the VC. (Sword & Shield)


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RPV Theory: Building CapabilitiesProcesses

Ways to Turn

Resources intoProducts/Services

Hiring/Training

Product Dev.

Manufacturing

Budgeting

Research

Values

Prioritization

Criteria forDecision-Making

Cost Structure

Income Statement

Customer Demand

Opp. Size

Ethics

Resources

Assets the Firm

can Buy or Sell,Build or Destroy

People

Technology

Products

Equipment

Cash/Brand/Distr.


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Consumer Demand & Signals of Change

Non-Market Contexts: External Forces (Government, Economics, etc.)Increasing or Decreasing Barriers to Innovation

Undershot Consumers: Opportunities for Up-Market SustainingInnovations

Overshot Consumers: Opportunities for Low-End Disruption, ShiftingProfits by Specialist Displacements (Modularity) and the Emergence of

Rules Non-Consumers: Opportunities for New Market Disruptive Growth

Established Companies almost always

Lose to Disruptive Innovators


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Application of the Intelligence

Community & Think Tank Model forTASKING > SENSING > INTERPRETATION


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Questions or Comments?www.AuroraWDC.com

Arik R. Johnson

Leadership & Development Institute

[email protected]

+01-715-720-1616

Derek L. Johnson

Research & Analysis Bureau

[email protected]

+01-608-268-3470

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