CI: Dealing With Information Leaks
In the June 19, 2006 edition of the Korea Times, an article written by Cho Jin-seo indicates that more than half of that country’s top 20 high-tech firms have suffered leaks of industrial know-how over the past three years.
These are companies who made that highest investment in R & D and are now seeing the results of their sacrifice turned into profits and market gains by their competitors.
The extent of technology theft is now growing ever quicker.
A significant amount of this apparent knowledge theft is believed to take place when employees change companies. In the past, South Korea (like Japan and other Asian countries) offered their employees lifetime jobs and thus garnered their loyalty. South Korean workers no longer see their current employers as providing lifetime jobs. Thus, there is no loyalty. In fact, two-thirds of suspected technology thefts involve former employees.
One can imagine what the situation is in North America, where for decades workers have been used to working for a number of different companies.
In South Korea, the major high tech companies have increasingly responded to technology theft with legal action.
Possible Solution
As CI Manager, it is incumbent upon you not only to implement CI programs to analyze the competitive landscape but also to minimize (if not prevent) the leakage of key knowledge to your competitors.
These are some suggested measures:
- Investigate Suspected Cases of Technology Leaks
Are the products offered by your competitors truly identical to your products? Or are they cheap or substandard imitations? Do they do the same things as your products or are your competitors making exaggerated claims?Investigate your competitors thoroughly to ensure that there is indeed evidence of theft. If the competitors are making exaggerated claims about their products, then you can provide your sales and marketing people with ways on how to refute the competitors claims.
- Look Into Whereabouts of Former Employees
If there is enough evidence to indicate the possibility of technology theft, investigate where former employees are working now. It is possible that their former colleagues in your company may know where they are currently employed.If there is strong evidence or suspicion that a former employee is responsible for technology theft, then the company should seek legal counsel for further action.
- Prevention is the Best Medicine
All employees working in sensitive areas of the company should be made to sign letters of confidentiality binding them to promises to not pass on technology secrets to competitors. There is something about signing a document that has a lasting effect on a person.