© D. ROUACH, ESCP-EAP. C.I. Benefits of a CI System Reliable network of field sources for fast data collection Optimal use of information sources Early warning of threats and opportunities Increased managerial flexibility Shorter cycle times from ideas to implementation Improved performance, flexibility, competitiveness

© D. ROUACH, ESCP-EAP. C.I. A competitive Intelligence System Is a structured, continuous process of in-house Business Intelligence Is integrated in the corporate decision-making process Manages data and information inputs from internal and field sources Transforms data into timely, pertinent and meaningful information/intelligence Disseminates intelligence to decision-makers on a need-to-know basis Provides a strategic knowledgebase for briefing and training of new managers

© D. ROUACH, ESCP-EAP. C.I. 3 – threat Action required, damage control 2 – threat Action suggested 1 – threat Information « stand by » 0 – threat No action required Source: Die Denkfabrik GmbH Escalation Levels of Information (Messages/Reports)

© D. ROUACH, ESCP-EAP. C.I. Confidentiality Level of Information 4 – field top secret Secret sources – Top management/board 3 – internal Company secret – need to know basis 2 – company classified For selected managers 1 – unclassified Open to every manager/user Confidentiality levels of users are set by the Intelligence Manager and CEO/Board on a veto basis Source: Die Denkfabrik GmbH

© D. ROUACH, ESCP-EAP. C.I. Traditional Information handling CI System Amount of Information Added value Storage dissemination according to individual profile, only processed and analyzed information knowledge and insight, aiming to answer CI needs only relevant information «knowledge chart» driven overload, «the more the better» raw data, nice-to-have huge database library-driven Source: Die Denkfabrik GmbH What a CI system can do for your organization

© D. ROUACH, ESCP-EAP. C.I. What a CI system can do for your organization Traditional Information handling CI System Credibility Reability Lead Time explicitly stated/ determined explicitly stated/ determined critical information cross-checked hours / days usually undetermined unknown «good feeling» days / weeks Source: Die Denkfabrik GmbH

© D. ROUACH, ESCP-EAP. C.I. What a CI system can do for your organization Traditional Information handling CI System Typical end users Dissimination strategy CI team decision-makers at all hierarchy levels and functions PUSH: based on pre-determined interest profiles. Escalation procedures. Goalkeepers to alert decision-makers business analysts, managers, intelligence experts « everybody » PULL: end-user must request information database operators, computer experts, librarians… Source: Die Denkfabrik GmbH

© D. ROUACH, ESCP-EAP. C.I. Business Ingelligence and Top of the Iceberg Competitive analysis Resources, market share, strenghts, weaknesses Marketing analysis Products, services, company literature, advertising, spendings, market share, strenghts, weaknesses, posotioning. Mainly based on traditional market research. Presentation integrating a succesful CI function, Rodenberg, Tilmen & Associates, 9 July 98 Business development, innovation, research & development, core capabilities, core competence, technological skills, culture, network, suppliers, shared value, strategic intent. Focus: What is really going on in the outside world of business.

© D. ROUACH, ESCP-EAP. C.I. Design Parameters of a CI System Organizational interfaces: reporting, responsibilities, funding, controlling Classification of end users: confidentiality level CI team focus: gathering, analysis and/or integration of information? Visibility (CIS within company) Rules of engagement for information sources: internal/external sources, incentives for cooperation Centralized vs. Decentralized CI team Security for PCs, sources, etc Measuring performance & quality of CI team

© D. ROUACH, ESCP-EAP. C.I. Intel Corporation USA Competitive Intelligence Benchmarking A technique bringing together many activities to aggregate data and synthesize information concerning the competitive environment, or to assess competitor’s strenghts and weaknesses. Its structure ensures accuracy and validity of information while ensuring the propriety of competitors’ information within legal and ethical boundaries. Competitive intelligence