Competitive Intelligence

QUESTION:

Many feel that the Internet and analytical software tools to organize Competitive Intelligence data are the key to having a successful Competitive Intelligence program.

The Internet is fast, cheap, accessible, convenient and is global in scope. Analytical software tools can consolidate and summarize the data and provide a visual structure to the data.

So why would anyone want to use primary or human intelligence for their Competitive Intelligence activities?

ANSWER:

With regard to the Internet, free data is all too often worth every penny you pay for it: nothing. The Internet provides a lot of data for which the source is unknown. The data cannot be validated. Often, in particular on company websites, the data may be out of date or deliberately false.

Even fee-based data has limited value, because it provides information on past, not current, conditions. Also, the provider of the data may have an agenda or bias and may not provide all of the data on a particular subject.

With regard to analytical software, their value is only as good as the data inputted. If the data is outdated or false, the software will provide only beautifully organized and illustrated falsehoods.

Analytical software packages are seen as magic bullets, but there are no magic bullets in Competitive Intelligence.

Human intelligence, that is, human intelligence that is checked and corroborated is the only truly valuable source of information in the Competitive Intelligence arena. Human intelligence is current and forward looking and can provide details that only people in the know can provide.

A successful Competitive Intelligence cycle (and its Counter-Intelligence counterpart) requires:

• Consistent Application;
• Commitment (from senior management and the Competitive Department down to lowliest clerk); and
• Control (that is, control of data and analysis quality to ensure that decision-makers are not given false information which could result in costly mistakes)