An Introduction to Competitive Intelligence Assoc. Prof. Hal P Kirkwood Leadership & Ethics Series Management & Economics Library Krannert School of Management Purdue University April 23, 2009

What is CI? Competitive Intelligence: A systematic and ethical program for gathering, analyzing, and managing external information that can affect your company's plans, decisions, and operations.

CI Cycles Ashton and Stacey Business Intelligence Model 4Cs Process SCIP – CI Process

Design and Setup Information Collection Design & Manage Analysis

Mini Case 1: Expert Opinions Find a SWOT Report for Eli Lilly Business Source Premier Find an Investment Analyst Report for Eli Lilly Investext

State of the Art: Competitive Intelligence. D. Fehringer, B State of the Art: Competitive Intelligence. D. Fehringer, B. Hohhof, & T. Johnson http://www.scip.org/pdf/f_060608_stateofart_sum.pdf

Categories of Competitive Intelligence Market Intelligence Industry level information on Trends Government regulations Geopolitical issues Partner Intelligence Monitoring activities of Company’s major suppliers Strategic partners Competitor Intelligence Detailed monitoring & analysis of Key competitors High-level scans of other competitors Ongoing identification of new entrants Technical Intelligence Monitoring advancements of Technical developments Customer/Prospect Intelligence Determining & monitoring Key internal influences Budget cycles Key focus areas

Mini Case 2: Industry & Partner Analysis Identify an industry overview for the pharmaceutical industry Net Advantage Compare Eli Lilly against its industry ratios Factiva Determine Eli Lilly’s suppliers and strategic partners Capital IQ

State of the Art: Competitive Intelligence. D. Fehringer, B State of the Art: Competitive Intelligence. D. Fehringer, B. Hohhof, & T. Johnson http://www.scip.org/pdf/f_060608_stateofart_sum.pdf

Uses/Applications of Competitive Intelligence Facilitate Strategic Direction Strategic Alliances New Product/Service Development Sales Process Marketing/Communications/Public Relations HR and Recruitment Rival Firms Competitor & Market Scenarios Acquisitions/Preventing Acquisition

Mini Case 3: Legal & Regulatory Documents Review Eli Lilly’s recent patent registrations US Patent & Trademark Office http://www.uspto.gov/ Find drugs currently in the pipeline for Eli Lilly http://www.phrma.org/

Methods & Models used in CI SWOT Porter’s 5 Forces Model Value Chain Analysis Four Corners Model Blindspots Analysis Strategic Group Map Technique Executive Management Profiling Financial Ratio Analysis Environmental & Event Analysis Plus more…

State of the Art: Competitive Intelligence. D. Fehringer, B State of the Art: Competitive Intelligence. D. Fehringer, B. Hohhof, & T. Johnson http://www.scip.org/pdf/f_060608_stateofart_sum.pdf

State of the Art: Competitive Intelligence. D. Fehringer, B State of the Art: Competitive Intelligence. D. Fehringer, B. Hohhof, & T. Johnson http://www.scip.org/pdf/f_060608_stateofart_sum.pdf

3 key types of intelligence ‘Recurrent’ Intelligence Keep a pulse Not linked to a specific strategic or tactical decision Reference Intelligence Frequently requested Used as foundation for specific strategic or tactical decision Strategic Intelligence Covers wide variety of topics Linked to a specific strategic or tactical decision

Mini-Case 4: Financial Filings & Media Sources Identify risks facing new entrants in the pharmaceuticals industry 10K Wizard (Free site=SEC Edgar: http://www.sec.gov/edgar.shtml) S-1 Filings Find an interview with the President of Eli Lilly Lexis/Nexis

State of the Art: Competitive Intelligence. D. Fehringer, B State of the Art: Competitive Intelligence. D. Fehringer, B. Hohhof, & T. Johnson http://www.scip.org/pdf/f_060608_stateofart_sum.pdf

Competitive Intelligence Competitive Intelligence Content Generation Magazines Newswires SEC Filings Web Sites Census Market Research Newspapers Internal & External Experts Business Intelligence Software News Portals Online Directories Competitor Profiling SWOT Analysis Trend Analysis Simulation Forecasting Communications Brand Marketing Position Human Resources Suppliers Mergers/Acquisitions Financial Product Dev. Business Dev. Public Relations Marketing Information Monitoring Tailoring Archiving Vertical Portals News Portals Research Shops ShiftCentral Inc, 2002 www.shiftcentral.com Introduction to Online Competitive Intelligence Business Action Business Action Strategy Strategy Competitive Intelligence Competitive Intelligence Information Aggregation Information Aggregation Content Generation Content Generation

Management & Economics Library Any Questions? Hal P Kirkwood Jr. Assoc. Head Management & Economics Library Purdue University kranlib@purdue.edu