INFORMATION FROM THE CUTTING EDGETM
Breaking the CI Turnover Cycle
© 2007 Cutting Edge Information
Elio Evangelista,Senior Analystelio_evangelista@ cuttingedgeinfo.com
www.CuttingEdgeInfo.com
INFORMATION FROM THE CUTTING EDGETM
Competitive Intelligence in Sports
2000, 2001, 2002, 2003, 2006
1996 1997
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Key Idea #1: CI Teams are in Danger
• Break the Cyclical Turnover
• Give CI Teams More Time
• Communicate Successes Constantly
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The CI Cycle
Time (in years)
Tea
m S
ize
0 5 n
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Years CI Has Been in Place
Though some groups have been in place for more than 20 years, in general, CI is a young function at most companies.
0
5
10
15
20
25
0.2 0.5 0.5 1 1 12
45 5 5
7
10 10
20
23
6
Average C D B J H K MA E FG O L IN P
Yea
rs in
Pla
ce
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“It’s relatively easy to produce these reports, it is hard to make sure people know where to get them and actually use them when they are planning.”
- Interviewed Competitive Intelligence Manager
Voice of CI – Communicating the Results
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Communication Through the Organization
CI CEOX
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Key Idea #2: CI Structures Sometimes Inhibit Success
• Utilize the CI/Market Research Overlap
• Establish a Proactive CI Team
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To Which Department Does CI Report?
CEO: 13%
Market Research: 69%
Business Development: 6%
R&D: 6%Sales: 6%
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“Whenever we collect competitor information, we are in fact collecting
competitive intelligence.”
- Interviewed Market Research Manager
Voice of CI – Market Research Link
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Percentage of Market Research Groups Collecting CI During Cutting Edge Information’s study Pharmaceutical Market Research, researchers discovered that the vast majority of market research departments also collect competitive intelligence.
Does Collect CI - 87%
Does Not Collect CI - 13%
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The CI/Market Research Overlap
Past Present Future
Market Research
Competitive Intelligence
Market Research focuses on:
• Current market conditions
• Market awareness for new products
• Potential sales forecasts based on historical data
CI focuses on:
• Developing scenarios and alternative futures
• Scanning present-day data to forecast future events
• Preparing brands to proactively change strategy based on market indicators
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Percent of respondents rating CI effective or very effective*
Decision Support: 67%
Market Monitoring: 67%
Identify Market Opportunities: 66%
Market Plan Development: 63%
Market Plan Input: 57%
1
2
3
4
5
CI’s Top 5 Marketing Roles
*Source: Survey of SCIP members by The Pine Ridge Group, Inc. and T.W Powell Company
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Centralized vs. Decentralized Prevalence According to our survey, a large majority of companies maintain a centralized, strategic CI groups.
75%
25%
Centralized
Decentralized
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Centralized vs. Decentralized Tendencies Centralized CI groups are more strategically-oriented and, therefore, more proactive than decentralized units.
Centralized Structure
Reactive Tactically Oriented
Strategically Oriented
Proactive
Decentralized Structure
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Key Idea #3: Get Everyone Involved
• Build a CI Culture
• Integrate Internal Functions
• Establish Senior CI Leadership
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Company A’s CI Reporting Structure
Director of Strategic Research
VP of R&D
CEO
Company A has two distinct CI units – one housed under business development and the other under marketing.
Sr Director ofMarket Research
Director ofMarketing CI
Sr VP ofMarket Research
Sr VP of Marketing
President
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Company O’s Field-Based CI ProcessThough it isn’t mandated, the sales reps at Company O are encouraged to participate in collecting competitive intelligence.
Data Sources
Sales Reps
Centralized Competitive
Intelligence Unit
Sales Directors
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At Company C, the CI unit is a sister organization to the brand teams and is housed under marketing. With this structure, the group has more brand level tactical influence than company-wide influence. However, should an issue arise that needs company-wide attention, CI also has a dotted reporting line directly to the firm’s president.
CompetitiveIntelligence
Brand Team AGovernmentRelations/ Regulatory
MedicalRelations
Head ofMarketing
Brand Team B Brand Team DBrand Team C
President
Integrating CI into the Culture
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Level of Executive Leading CI
As seen, the majority of surveyed CI units are led by managers. However, 44% of firms employ someone more senior than a manager to head their CI departments.
56%19%
6%
19%
Manager
Director
Executive Director
Senior Management
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Experience Makes a Difference
A B M F N I P Avg.
0.51.0
5.0
7.0
10.0
20.0
23.0
9.5
0.0
5.0
10.0
15.0
20.0
25.0
Ye
ars
in
Pla
ce
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0.2
3.5
10.0
5.05.0
2.0
1.01.0
C E J H G O L Avg.
Ye
ars
in
Pla
ce
Number of Years CI has been in Place Where Senior Leaders Head the Group
Number of Years CI has been in Place Where Managers Head the Group
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Key Idea #4: Experience Makes a Difference
• Leverage Staff Experience
• Outsource CI Strategically
• Staff the CI Team Accordingly
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Typical Experience Levels of CI Professionals
On average, professionals in the CI field have 5.6 years of CI experience.
0
2
4
6
8
10
12
C G MN L A AverageH
2 2
3 3
4
5 5 5 5 5
10 10 10 10
5.6
B F E I P D O
Exp
erie
nce
(in
yea
rs)
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Typical Experience Levels of CI New HiresA typical new hire in the CI field has 3.7 years of experience.
0
2
4
6
8
10
12
0
11.5
2.53 3 3 3 3
5 5 5 5 5
10
3.7
F I NA L E AverageOD C G J B H P M
Exp
erie
nce
(in
yea
rs)
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Traits of Successful CI Analysts
Communication and analytical skills rank tops among traits of successful CI employees, according to survey results.
Leadership
Persistence
Innovative
Strategy oriented
Strong analytical thinking
Communication skills
Data oriented
Strong intuition
High ethical standards
Market research experience
Dedication
Inquisitive 6%
6%
6%
6%
31%
56%
63%
63%
60%
81%
81%
56%
0% 20% 40% 60% 80% 100%
Percentage of Companies
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Average Number of FTEs in CI
Because CI groups outsource a great deal of work, they run their departments with a relatively low number of FTEs.
0
1
2
3
4
5
6
7
D O PC E G AverageM
0
0.5
1 1 1 11.3
3 3 3
4
5 5 5
6
2.7
I B N A F H J L
Fu
ll-T
ime
Eq
uiv
alen
ts (
FT
Es)
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Percentage of Companies that Outsource Data Analysis Three-quarters of survey participants prefer to conduct their competitive intelligence analysis in-house as opposed to using a third-party.
75%
25%
% of companies conducting data analysis in-house
% of companies that outsource data analysis
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“Obviously, the focus on competitors is a unique purview of CI. CI has the
greatest potential to see where competitors are going.”
- Interviewed Director of Competitive Intelligence
Voice of CI – The Value of CI
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Four Tenets of CI
Communicate Successes
Set Your Goals
Get Top-Level
Support/Buy-in
Stay On The Ball
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Thank You!
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