1. Competitive Intelligence: What is It & It’s Status Jerry P. Miller Director Competitive Intelligence Center Simmons College Boston, MA +1-617-521-2809 +1-671-521-3141 (fax) jmiller@simmons.edu cic.simmons.edu

2. Conduct Intelligence to: Gain a Competitive Advantage

3. 3NOM May 15, 2001  Jerry P. Miller The Intelligence Function: The process of ethically collecting, analyzing, and disseminating accurate, relevant, specific, timely, foresighted and actionable intelligence regarding the implications of the business environment, competitors, and the organization itself.

4. 4NOM May 15, 2001  Jerry P. Miller The Intelligence Function: Gather information from primary & secondary sources Upgrade information to intelligence incorporating analyst’s perspective Generate insights and suggestions Disseminate to decision makers who take action that can gain a competitive advantage for the firm

5. 5NOM May 15, 2001  Jerry P. Miller The Intelligence Process is NOT: Industrial/Economic Espionage Corporate Spying Routing news clippings Searching the Web

6. 6NOM May 15, 2001  Jerry P. Miller Why Intelligence? Managers need to increase the quality of: 1) products or services 2) strategic planning and 3) market knowledge That results in higher business performance

7. How Do I Know if I Need an Intelligence Function? Well, how critical are the questions that keep you awake at night?

8. How Many Resources Are Enough? Well, how many key managers are currently obtaining and using adequate intelligence effectively for decision making?

9. 9NOM May 15, 2001  Jerry P. Miller Strategic Intelligence: Emphasizes the relationship between the intelligence function and strategic decision- making

10. 10NOM May 15, 2001  Jerry P. Miller Business Intelligence: Incorporates the monitoring of a wide array of developments across an organization’s external environment, which includes customers, competitors, suppliers, economic issues as well as technical and regulatory changes

11. 11NOM May 15, 2001  Jerry P. Miller Technical Intelligence : Monitors research and development issues Reduces risky decision making Broadens awareness of competitive situation Identifies business alternatives Increases warning time from 31 to 37 months in chemical/pharmaceuticals industry and from 17 to 33 months in other industries

12. 12NOM May 15, 2001  Jerry P. Miller Counterintelligence: Protects intelligence collection activities and protects plans, programs, and projects from adversaries Hire security specialists Train employees not to give away sensitive information Computer usage heightens importance

13. 13NOM May 15, 2001  Jerry P. Miller Who’s Doing Competitive Intelligence ? 90% of Fortune 500 firms in the U.S. 9% of U.S. firms with formal processes Chemical and telecommunications firms Firms with high R&D expenditures Firms that own many patents 2-3% of German firms in various industries U.S. & U.K. firms: leading intelligence producers

14. 14NOM May 15, 2001  Jerry P. Miller How Do Leading Firms Conduct Intelligence? Broadcast intelligence to users Increase number of intelligence users View intelligence as decision critical Intelligence is part of managers’ duties Institutionalize the intelligence function Manage corporate knowledge assets Maintain and rely on during a recession

15. 15NOM May 15, 2001  Jerry P. Miller Primary Information Sources (Find Experts!): Interviews with internal experts, customers, and suppliers Marketplace surveys Industry analysts Business editors Associations Observations Unpublished documents

16. 16NOM May 15, 2001  Jerry P. Miller Secondary Information Sources: Internal and external databases Industry and government reports Directories Statistical sources Newspapers and magazines Trade publications

17. 17NOM May 15, 2001  Jerry P. Miller Criteria Not to be Overlooked: Balance strategic & operational needs Adjust the function as the market changes Determine locus of decision making Company’s structure Corporate culture Market environment

18. 18NOM May 15, 2001  Jerry P. Miller Common Problems: Managers don’t value intelligence Managers consider intelligence a luxury Inability to incorporate it into strategy Managers believe “I know my industry!” Unskilled people try to perform intelligence Managers hoard information The function doesn’t meet the real needs and concerns of decision makers Intelligence is seldom used by decision makers (A.S. e.g.)

19. 19NOM May 15, 2001  Jerry P. Miller Creating the Intelligent Firm: Adjust decision-making process & culture Open communication lines Sensitize firm to marketplace changes Align intelligence to decision-making Support the process with technology

20. 20NOM May 15, 2001  Jerry P. Miller Excellent Intelligence Service: Clearly define intelligence needs Use creative sources Understand the complexity of the issues Upgrade information to intelligence Offer recommendations, suggestions, and alternatives Obtain feedback from decision makers

21. Motivator: What’s in It for Me?

22. 22NOM May 15, 2001  Jerry P. Miller Motivational Issues What are the benefits to the firm? What are the benefits to decision makers? What are the benefits for intelligence professionals?

23. 23NOM May 15, 2001  Jerry P. Miller Predict & Measure the Impact of the Intelligence Function Determine where & how impacts will occur Determine your competitive advantage Assess appropriateness of costs (cf. CFO) Measure impacts in terms of: –Time- or cost-saving –Cost avoidance –Revenue enhancement

24. 24NOM May 15, 2001  Jerry P. Miller Various Roles in the Intelligence Process Core Roles: –primary researchers –secondary researchers –analysts –integrators Supporting Roles: –system builders –data builders –knowledge builders –protectors –decision makers

25. 25NOM May 15, 2001  Jerry P. Miller Intelligence Skills Come From: Personal traits Formal education Mentoring Work experience

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27. Competitive Intelligence: It’s Current Status

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39. 39NOM May 15, 2001  Jerry P. Miller Where is the Intelligence Profession Going? More firms, regardless of size, establish intelligence Development of more sophisticated and accurate measurement techniques Deterioration of centralized intelligence functions The business community pressures academics to teach intelligence

40. 40NOM May 15, 2001  Jerry P. Miller Where Going Continued... Most industrialized countries adopt standards to protect trade secrets More extensive background checks of potential executives More firms establish guidelines for conducting intelligence The volume of legal cases establishes a body of legal precedent

41. 41NOM May 15, 2001  Jerry P. Miller Where Going Continued... Corporate leaders demand a deeper analysis of critical issues Internationalization of business leads to a varying sets of business conduct Information technologies will enable an increase in unethical collection attempts

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43. 43NOM May 15, 2001  Jerry P. Miller Coming up Today Learn how to search the Invisible Web Use the Web and alerting services to do CI Use the right application to support CI Using workflow applications to support CI Learn how to diagnosis and fix knowledge based, value-creation processes Learn to create knowledge correctly to sustain a competitive advantage