1. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch American Society for Information Science & Technology (ASIST) – Southern Ohio Chapter “Fundamentals of Competitive Intelligence” January 25, 2001 Toni Wilson, President, MarketSmart Research

2. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Agenda Purpose and value of competitive intelligence (CI) The competitive intelligence process The collection phase The analysis phase Adding value through additional, ongoing activities

3. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Why Competitive Intelligence New competitors enter “the game.” Competitors invent new moves or move out of turn. The rules of the game change. Source: David Harkleroad The Futures Group

4. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch What Competitive Intelligence IS and IS NOT Competitive intelligence IS any information that indicates whether or not your company is currently or will remain competitive. Competitive intelligence IS NOT about competitors, but about keeping your company competitive.

5. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch What Competitive Intelligence IS and IS NOT Competitive intelligence IS NOT the gathering and distribution of data. The value is in the analysis, or the use of data to create an understanding and market vision of your industry, your competitors, and your company.

6. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch The role of the CI function To protect a company and its management from “blind spots” – the bane of successful companies. To challenge and validate/invalidate company assumptions and strategies on a regular basis. Source: Ben Gilad Business Blindspots

7. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch The Intelligence Edge Quality competitive intelligence: Is actionable: “Intelligence—not information—helps a manager to respond with the right market tactic or long- term decision. [Stating information] becomes decision- producing intelligence when the statement has implications.” The New Competitor Intelligence Leonard M. Fuld (1995)

8. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch The Intelligence Edge Quality competitive intelligence: Adds value: “Competitive intelligence was worth up to $50 million per year [in increased revenue and avoided expenditures] to our company.” Robert Flynn, Chief Executive Officer Nutrasweet (retired)

9. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch The Intelligence Edge Quality competitive intelligence: Is necessary: “Companies that don’t use competitive intelligence are running blind.” Anne Selgas Director, Corporate Competitive Intelligence Eastman Kodak

10. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch The Competitive Intelligence Process Recommendations Company Overlay Predictions/Projections Analysis Fact Gathering

11. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch “Tell me about XYZ Company.” Wrong Response: Okay. (And then proceed to collect and share every potentially relevant detail about the competitor.) Correct Response: What is the business decision or issue? (And then tailor your research accordingly.) The Typical CI Request

12. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Company history and background Management (key executives and board members) Organization structure Facilities/locations Financial performance and capabilities Vision/mission and strategies The Pieces That May Fit

13. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Alliances, acquisitions and divestitures Sales and marketing strategies and activities Customers/markets served (and market share) Products and product lines (including product pricing) Technology The Pieces That May Fit

14. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Fact Gathering Secondary Sources Advertisements Annual reports* Business credit reports* Company profiles* Corporate and executive affiliations* Foreign periodicals* Help-wanted advertisements* Interview transcripts* Legislative information* Local and regional newspapers* *Available online (commercial services and/or Internet) The Competitive Intelligence Process

15. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Fact Gathering Secondary Sources (cont.) Marketing literature* National newspapers* Patents and trademarks* Press releases* Public records* SEC filings* Speech transcripts Trade publications* Who’s Who and other biographical data* *Available online (commercial services and/or Internet) The Competitive Intelligence Process

16. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Great place to start –Information about companies of any size –Tables, charts, graphs, etc. –Several sources of quality information for free/cheap With a number of shortcomings –Marketing tool for companies, offering subjective information –Small percentage of information on web is indexed –Difficult to search for common names, DBAs, subsidiaries, etc. –Questionable accuracy/reliability (anyone can be a web publisher) Validate and supplement with additional sources. A Word About Web Research

17. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Secondary Sources (past and present) Advertisements Annual reports Business credit reports Caselaw Company profiles Corporate and executive affiliations Foreign periodicals Local and regional newspapers Marketing literature National newspapers Patents and trademarks Press releases SEC filings Speech transcripts Trade publications Who’s Who and other biographical information

18. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Help-wanted advertisements Legislative information Patents and trademarks SEC filings Speech and interview transcripts Secondary Sources (foreknowledge)

19. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Secondary Sources Public Records/Filings Asset information (motor vehicles, boats, airplanes) Bankruptcy filingsJudgments and liens Civil court docketsProfessional licenses Corporate filings (incorporation records)Real property records DBAs/Fictitious namesStock ownership Executive affiliationsUCC filings

20. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Fact Gathering Primary Sources Industry observers Industry participants Your sales force Trade shows Competitors in common Former employees The Competitive Intelligence Process

21. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Primary Sources (human sources) Industry observers — Journalists — Industry analysts — Stock analysts Industry participants — Suppliers — Customers — Consultants

22. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Your sales force — Incent them appropriately Trade shows — “Quarterbacking” – go with a plan Primary Sources (human sources)

23. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Competitors in common — Within or outside of your industry Former employees — Respect their non-disclosure agreements Primary Sources (human sources)

24. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Analysis The Competitive Intelligence Process

25. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Analysis – Assess the current competitive situation Compare competitor strengths and weaknesses Identify potential opportunities and threats Leads to an understanding of the future competitive situation

26. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Analysis – Assessment Tools Company profile — Brings all of the pieces of information together — Supports development of comprehensive SWOT analysis Leadership profile — Analyze the background, capabilities and personality of competitor’s leader/most influential decision-maker Head-to-head product comparisons

27. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Role playing — Creates stronger understanding of competitor’s perspective Scenario analysis — If A happens, then B or C could happen. If D or E happens, then F could happen, etc. Benchmarking — Measure the specific characteristics of several competitors against each other Analysis – Assessment Tools

28. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Forecast the future competitive situation. What are the competitors likely to do the same or differently in the future? What is likely to cause any changes? Challenge the underlying assumptions. Predictions/ Projections The Competitive Intelligence Process

29. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch What is your company doing that is the same or different than the competitor(s)? Identify your company’s weaknesses and vulnerabilities. Company Overlay The Competitive Intelligence Process

30. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch What should your company be doing now and in the future in order to outthink and outperform the competition? Assess your company’s strategies for effectiveness and viability. Recommendations The Competitive Intelligence Process

31. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch Recommendations Company Overlay Predictions/Projections Analysis Fact Gathering START OVER -- KEEP CURRENT Monitor competitor responses to your company’s actions and strategies. The Competitive Intelligence Process

32. Fundamentals of Competitive Intelligence MarketSmartResearch Reliable Research Results MarketSmartResearch CI Resources Society of Competitive Intelligence Professionals (SCIP) www.scip.org – Chapter meetings (Southwest Ohio chapter) – Educational workshops – Publications – Networking Recommended reading – Confidential – John Nolan – Business Blindspots – Ben Gilad – The New Competitor Intelligence – Leonard Fuld