Competitive Intelligence

A.    No Relationship with Senior Management

 

Not all CI professionals are extroverts and nobody expects them to be. On the other hand, they must not pretend that all their research and analytical skills will be noticed or be of value if they sit in their office all day.

 

CI professionals must devote their time developing and nurturing relationships with senior management. A strong relationship with any senior manager will get the attention of that manager’s staff, who can also develop into valuable allies for your CI efforts.

 

Think about it. Would anyone, especially a senior manager, share information, concerns or needs with someone they did not know? Not likely and as a result the CI function is likely to suffer.

 

B.     Not Keeping Up with Education and New Techniques

 

Education is a responsibility that is often neglected, and CI professionals are no exception. There are some organizations that use only one method of reporting (e.g., an Excel matrix of competitive pricing) and one analytical methodology (e.g., SWOT analysis). Whether as an employee or consultant, you may be afraid of rocking the boat with new tools and approaches. Maybe you should.

 

New analytical techniques add valuable texture and context to available data that would otherwise not seen before.

 

C.    Avoiding the Truth

 

As a CI professional, sooner or later you will come across “sensitive” information (e.g. conflicts with your company’s current assessment of the market) that has to be brought to the attention of senior management. This is the information that senior management will not be happy to hear – or so you may think. If you avoid making people aware of these findings, you will not only be making a disservice to yourself, but also to the people who depend on the information.

 

If you do, you will gain the respect of your senior management. It will allow them to make more effective decisions, because they will have to first address the conflicting information, and in doing so get at the real truth.  

 

D.    Not  Making the Information Intelligible

 

CI professionals are trained in the art of obtaining and analyzing information. Too often, however, they stop there versus providing senior management with a presentation to make all the information intelligible so that decisions can be made and changes brought about.

 

Speak to the audience in their terms. If your focus is on product, the presentation should be on product analysis, such as how a competitor’s actions could threaten a particular product and what should be done about it.

 

E.     Not Celebrating Victories

 

CI professionals don’t always like to draw attention to themselves, but they should do so because it is in their best interest to do so.

 

Victories don’t always come in the form of your company doing something spectacular as a result of your efforts, but rather in your company not doing something that would have, otherwise, resulted in loss of time and revenue (e.g. a decision not to compete against a regional competitor or go after a market sector and so avoid losses in expenditures and human resources.)

 

That’s still a win. Celebrate it.

The issues that will likely confront your senior management likely centre around the following areas:

Clients and Competitors

Senior management will be concerned about keeping key clients. Keeping in mind Pareto’s Law (the 80/20 rule), it is likely that 20% of your clients represent 80%of the revenues. In some cases the ratio is more extreme. Therefore, it is essential to know how changes to the economy (including globalization), technology, demographics, are effecting your clients. Is your company keeping up with the changes your key clients are facing? What are your competitors doing to challenge your standing in the eyes of your key clients?

Another thing to keep in mind: Are some of your key clients losing the battle against foreign competitors or the changing economy, and are thus facing extinction? Are you missing opportunities to develop relationships with growing companies that could potentially be key clients of the future?

Products and Services

What are the key specifications to your products, services, price points that attract and keep your best clients? What are your main competitors doing to challenge your company? Are there any developing technologies or new competitors that could disrupt your industry? Are your products and services competitive enough to enter new markets?

Also, there may be alternatives to your products and services that you may not be aware of but have been successful in other parts of the world. Do you have the capability of understanding what is happening elsewhere without having to wait for the English or French translation?

Growing and Dying Markets and Market Segments

Markets, whether domestic or foreign, are in a constant state of flux. Increased prosperity in one segment or sudden immiseration elsewhere can disrupt your company’s revenues if your company makes the wrong decisions.

In extreme cases, companies may need to change their business model beyond recognition in order to grow and prosper. Nokia (which started as rubber and heavy cable manufacturer before transforming into a wireless telecommunications giant) and 3M (which started off as a mining company and manufacturer of sandpaper) are two well-known examples.

As a CI Manager, you should be aware of growing markets overseas and developing market segments in your home country. This will enable you to be an advocate for product and service innovation to profitably serve those markets. You should also be aware of declines in markets as well, so that you can be an advocate for extricating your company from developing products and services (and markets) that will not bring in sales revenues.

CONCLUSION

As a CI Manager, you should be ready to take an active role in developing a deep understanding of existing and potential clients and competitors; current and emerging markets; and the current and developing products and services that can attract important clients. Competitive Intelligence is based on hard facts, common sense and an awareness of opportunities and dangers.