distinctions and synergies The BI to CI Continuum distinctions and synergies Presented by Mark T. Greene, Ph.D. President, Market Intelligence Ark Group’s 6th Annual Business Intelligence and Analytics in the Legal Profession April 27, 2017

Business Intelligence BI is an umbrella term that refers to a variety of software applications used to analyze an organization’s raw data. BI as a discipline is made up of several related activities, including data mining, online analytical processing, querying and reporting. Ryan Mulcahy (2007) Competitive Intelligence The collection and analysis of information to anticipate competitive activity, see past market disruptions and dispassionately interpret events … provides insight into marketplace dynamics and challenges in a structured, disciplined, and ethical manner using published and non-published sources. Leonard Fuld (2016) Agree with John Alber that BI is a “survival tool.” More specifically, I see it as a “risk management tool.” So is CI. Usually based on internally generated quantitative data. Most often from financial systems, but could originate in HR or other systems as well. CI may include qualitative and quantitative market research, and data from internal sources. BI: always quantitative CI: qualitative and quantitative CI includes “competitor” intelligence BI: Any analysis related to the business of the firm – includes CI!?! BI: What we know about our business (in real companies, often prescribed by FASB (Financial Accounting Standards Board)) CI: What we know about our competitive milieu, often in the context of what we know about ourselves.

CI & BI Where in the organization (funding, management)? BI: Finance (major support from IT), senior leadership CI: Marketing, managing partner/executive committee or COO BI is often required by clients (dashboard reporting) CI and BI can indirectly help satisfy clients (informed client teams) CI: analysis based on data/information from all sources to help compete Business intelligence, competitive intelligence, artificial intelligence, market intelligence: confusion!

(Big) BI Assumptions Clean data Comprehensive data Clearly defined data (e.g., “profit”) Integrated data (data warehouse) Available data (user-friendly retrieval an analysis tools) Effective dashboards (client, practice, industry, etc.) Blurred lines: BI can include CRM, which may connect to external data sets such as Thomson Reuters business databases. No longer just internal. “Available” includes issues of frequency of update. Can range from monthly (let’s hope not quarterly) to real time.

BI & CI Applications: Brand Development Internal financial audit Market research Industry focus Qualitative/exploratory Geographic focus Quantitative/conclusive Practice focus Syndicated research Profit (realization, revenue) E.g., Acritas Cross-selling Demand forecasts for services (e.g., patent applications, bankruptcy, international transactions) Client tenure Size of deals/litigation Directories/ratings Client characteristics E.g., Chambers Employees (inc. trends) Revenue (inc. trends) Thomson Reuters – LexisNexis Client feedback Share of market Trends in transactions and litigation Loyalty Competitors used by client types Differentiators Competitor strengths The goal is a differentiation strategy that positions us to earn and keep more profitable business.

BI & CI Applications: Client Feedback Programs Relationship reviews Senior firm management Deep dives for strategic clients Third party, qualitative Generalizable surveys of client loyalty/satisfaction Net Promoter Score not sufficient for action Analysis in context Client characteristics Firms used Practices used Firm-o-graphics (e.g., employees, revenue, industry, growth, corporate strategy) Client relationship to firm Relationship Reviews: Prep the firm representative with a the client’s financial history with the firm (BI), and with a CI dossier regarding the client (e.g., business strategy, law firms used, profiles of executives). Strategic Client Interviews: Customize questionnaires on the basis of services most heavily used and competitors used. Quantitative Survey: Use BI to develop lists of client firms and individuals to be surveyed. For all three feedback programs, BI used to slice & dice the results. CI used in planning follow up actions. (NEVER survey a client without follow-up.)

BI & CI Applications: Pricing Internal (BI) Profitability (fixed fee, success-based, collars, shared risk, etc., etc.) External (CI) Price sensitivity Competitor pricing Of course, it’s a law firm, so everything depends on the compensation structure. Everything here is “politics aside.” Huge assumption.

Coming Impact of AI on CI and BI What is AI? Augmented Intelligence Cognitive Computing Big Data Analytics Robotics Expert Systems Machine Learning Internet of Things (IoT)

Coming Impact of AI on BI and CI Or… Or one of many other definitions or illustrations. There is little formal agreement, but most in the field know it when they see it. Generally, AI is computers performing analytic tasks heretofore believed to be the sole province of the human brain.

Coming Impact of AI on BI and CI Many of the tools of AI are directly applicable to analysis of the Big Data accessed through BI tools/platforms. This should substantially enhance the predictive power of BI. The same is true of the analysis of the information collected by CI, but analysis of unstructured data (e.g., media stories mentioning competitors or clients) is substantially more complex. The greatest benefits will be achieved when AI, BI, and CI are applied concurrently to important business problems such as strategic planning.

Closing CI and BI are complementary business tools and should often be used in concert. AI methods can greatly increase the utility of CI- and especially BI- generated data.

Questions/Discussion