American Society for Information Science & Technology (ASIST) – Southern Ohio Chapter

1. American Society for Information Science & Technology (ASIST) – Southern Ohio Chapter “Fundamentals of Competitive Intelligence” January 25, 2001 Toni Wilson, President, MarketSmart Research

2. Purpose and value of competitive intelligence (CI) The competitive intelligence process The collection phase The analysis phase Adding value through additional, ongoing activities Agenda

3. New competitors enter “the game.” Competitors invent new moves or move out of turn. The rules of the game change. Source: David Harkleroad The Futures Group Why Competitive Intelligence

4. Competitive intelligence IS any information that indicates whether or not your company is currently or will remain competitive. Competitive intelligence IS NOT about competitors, but about keeping your company competitive. What Competitive Intelligence IS and IS NOT

5. Competitive intelligence IS NOT the gathering and distribution of data. The value is in the analysis, or the use of data to create an understanding and market vision of your industry, your competitors, and your company. What Competitive Intelligence IS and IS NOT

6. To protect a company and its management from “blind spots” – the bane of successful companies. To challenge and validate/invalidate company assumptions and strategies on a regular basis. Source: Ben Gilad Business Blindspots The role of the CI function

7. Quality competitive intelligence: Is actionable: “Intelligence—not information—helps a manager to respond with the right market tactic or long-term decision. [Stating information] becomes decision-producing intelligence when the statement has implications.” The New Competitor Intelligence Leonard M. Fuld (1995) The Intelligence Edge

8. Quality competitive intelligence: Adds value: “Competitive intelligence was worth up to $50 million per year [in increased revenue and avoided expenditures] to our company.” Robert Flynn, Chief Executive Officer Nutrasweet (retired) The Intelligence Edge

9. Quality competitive intelligence: Is necessary: “Companies that don’t use competitive intelligence are running blind.” Anne Selgas Director, Corporate Competitive Intelligence Eastman Kodak The Intelligence Edge

10. Recommendations Company Overlay Predictions/Projections Analysis Fact Gathering The Competitive Intelligence Process

11. “Tell me about XYZ Company.” Wrong Response: Okay. (And then proceed to collect and share every potentially relevant detail about the competitor.) Correct Response: What is the business decision or issue? (And then tailor your research accordingly.) The Typical CI Request

12. Company history and background Management (key executives and board members) Organization structure Facilities/locations Financial performance and capabilities Vision/mission and strategies The Pieces That May Fit

13. Alliances, acquisitions and divestitures Sales and marketing strategies and activities Customers/markets served (and market share) Products and product lines (including product pricing) Technology The Pieces That May Fit

14. Fact Gathering The Competitive Intelligence Process Secondary Sources Advertisements Annual reports* Business credit reports* Company profiles* Corporate and executive affiliations* Foreign periodicals* Help-wanted advertisements* Interview transcripts* Legislative information* Local and regional newspapers* *Available online (commercial services and/or Internet)

15. Fact Gathering The Competitive Intelligence Process Secondary Sources (cont.) Marketing literature* National newspapers* Patents and trademarks* Press releases* Public records* SEC filings* Speech transcripts Trade publications* Who’s Who and other biographical data* *Available online (commercial services and/or Internet)

16. Great place to start Information about companies of any size Tables, charts, graphs, etc. Several sources of quality information for free/cheap With a number of shortcomings Marketing tool for companies, offering subjective information Small percentage of information on web is indexed Difficult to search for common names, DBAs, subsidiaries, etc. Questionable accuracy/reliability (anyone can be a web publisher) Validate and supplement with additional sources. A Word About Web Research

17. Secondary Sources (past and present) • Advertisements • Annual reports • Business credit reports • Caselaw • Company profiles • Corporate and executive affiliations • Foreign periodicals • Local and regional newspapers • Marketing literature • National newspapers • Patents and trademarks • Press releases • SEC filings • Speech transcripts • Trade publications • Who’s Who and other biographical information

18. Secondary Sources(foreknowledge) • Help-wanted advertisements • Legislative information • Patents and trademarks • SEC filings • Speech and interview transcripts

19. Secondary Sources Public Records/Filings Asset information (motor vehicles, boats, airplanes) Bankruptcy filings Judgments and liens Civil court dockets Professional licenses Corporate filings (incorporation records) Real property records DBAs/Fictitious names Stock ownership Executive affiliations UCC filings

20. Fact Gathering The Competitive Intelligence Process • Primary Sources • Industry observers • Industry participants • Your sales force • Trade shows • Competitors in common • Former employees

21. Primary Sources (human sources) • Industry observers • Journalists • Industry analysts • Stock analysts • Industry participants • Suppliers • Customers • Consultants

22. Primary Sources (human sources) • Your sales force • Incent them appropriately • Trade shows • “Quarterbacking” – go with a plan

23. Primary Sources (human sources) • Competitors in common • Within or outside of your industry • Former employees • Respect their non-disclosure agreements

24. Analysis The Competitive Intelligence Process

25. Compare competitor strengths and weaknesses Identify potential opportunities and threats Leads to an understanding of the future competitive situation Analysis – Assess the currentcompetitive situation

26. Company profile Brings all of the pieces of information together Supports development of comprehensive SWOT analysis Leadership profile Analyze the background, capabilities and personality of competitor’s leader/most influential decision-maker Head-to-head product comparisons Analysis – Assessment Tools

27. Role playing Creates stronger understanding of competitor’s perspective Scenario analysis If A happens, then B or C could happen. If D or E happens, then F could happen, etc. Benchmarking Measure the specific characteristics of several competitors against each other Analysis – Assessment Tools

28. Forecast the future competitive situation. What are the competitors likely to do the same or differently in the future? What is likely to cause any changes? Challenge the underlying assumptions. Predictions/ Projections The Competitive Intelligence Process

29. What is your company doing that is the same or different than the competitor(s)? Identify your company’s weaknesses and vulnerabilities. Company Overlay The Competitive Intelligence Process

30. What should your company be doing now and in the future in order to outthink and outperform the competition? Assess your company’s strategies for effectiveness and viability. Recommendations The Competitive Intelligence Process

31. Recommendations Company Overlay Predictions/Projections Analysis Fact Gathering The Competitive Intelligence Process • START OVER • -- KEEP CURRENT • Monitor competitor • responses to your • company’s actions and • strategies.

32. CI Resources • Society of Competitive Intelligence Professionals (SCIP) • www.scip.org • Chapter meetings (Southwest Ohio chapter) • Educational workshops • Publications • Networking • Recommended reading • Confidential – John Nolan • Business Blindspots – Ben Gilad • The New Competitor Intelligence – Leonard Fuld