Jan 26, 2016 for example, in the pharmaceutical industry, respondents said that use of competitive intelligence had either saved or generated millions through discontinuing ineffective drug development efforts. Competitive intelligence ci is a tool that provides a competitive advantage to enterprises. Competitive intelligence uses many of the same techniques as market research but deploys them to answer highly targeted and specific questions, rather than to gain insight into broad market trends. Competitive intelligence formulation of marketing strategy. Competitive intelligence works best when considered a process instead of a function. Competitive intelligence is the systematic process of observing, collecting and analyzing relevant information about the external business environment and distributing the resulting insights within an organization in order to make informed decisions.
Hans hedin has a strong track record in the area of market competitive intelligence consulting. Competitive intelligence analysis scenarios method. The legal and ethical collection and analysis of information regarding the capabilities, vulnerabilities, and intentions of a business competitor. In business parlance, competitive intelligence can be understood as the process of identifying, gathering, evaluating and disseminating, information concerning competitors strengths and weaknesses, products, and customers, which a firm requires for strategic decision making. Competitive intelligence ci is the process of legally and ethically gathering, interpreting, and acting on information about an organizations competition or other forces that may affect its future success. We will describe the rationale for choosing the kitkiq. Boncella competitive intelligence and the web robert j. According to calof and viviers 2001, 62 competitive intelligence is a subset of knowledge management. The popular literature is filled with definitions and images of competitive intelligence taken from the realm of the government and the military. How to conduct competitive intelligence the balance. Generating competitive intelligence in organizations.
Glossary of terms used in competitive intelligence and. Next, the samples of competitive intelligence applications will be presented in study. Competitive intelligence ci is the systematic collection and analysis of information from multiple sources, and a coordinated ci program. Introduction of competitive intelligence ci processes as. It differs from industrial espionage in that it uses legal and ethical means to gather and sift. Only half of companies actually use the competitive. A large pqbased competitive disadvantage should automatically become. Such systems rely upon heavily qualitative information and the intuition of decision makers.
Shaping business strategy through competitive intelligence wipo. An alternative name for competitive intelligence practitioners in commercial enterprises is industry risk analysts. Towards a universal definition of competitive intelligence. A contribution to define and clarify the content of competitive intelligence.
The role of competitive intelligence and its subtypes on. Below is an excellent definition of ci from our friends, society of competitive intelligence professionals scip and aurora wdc. This is expressed again from drucker on page 610 introduction to topmanagement tasks and organisation by writing and. Competitive intelligence how is competitive intelligence. Those entities which work to deny the availability of open. This makes the most sense if the competitive intelligence units main job to support strategic planning and in most companies this is the case. Competitive intelligence for information professionals 1st. Oct 07, 20 analysis is often where the ball drops as far as competitive intelligence analysts are concerned.
Strategic and competitive intelligence professionals wikipedia. Nov 06, 2018 competitive strategy pdf summary the 5 forces that move the competition. Competitive intelligence wikibooks, open books for an open. Competitive intelligence is defined as the art of collecting, analyzing and presenting information about the external environment to help management makes decisions in a timely manner.
It is the action of defining, gathering, analyzing, and distributing intelligence about products, customers, competitors, and any aspect of the environment needed to support executives and managers in strategic decision making for an organization. Fivephase model of the intelligence cycle of competitive intelligence 285 irrespective of the number of phases in which the activities are organized. Scanning for competitive intelligence scanning for competitive intelligence, as our behavioral category of interest, refers to the process of seeking and collecting information about events, trends, and changes beyond organizational boundaries to guide organizational strategic management aguilar, 1967. Competitive intelligence essentially means understanding and learning whats happening in the world outside your business so you can be as competitive as possible. For example, research in the marketing literature addresses competitive intelligence as an integral part of building marketoriented organizations e. In other words, it is a legal and ethical practice that helps in improving the. Feb 03, 2020 competitive intelligence is the act of collecting and analyzing actionable information about competitors and the marketplace to form a business strategy. Glossary of terms used in competitive intelligence and knowledge management vernon prior is a leading practitioner in competitive intelligence. Always observe whether the percentage size of any resulting pq competitive advantage or disadvantage for your company was large or small.
Evans, cpa, cma, cfm this course provides an overview of how competitive intelligence works, including some of the techniques used to conduct competitive intelligence. This is an overview of the evolution of competitive intelligence and of the fundamental concepts of ci, including the intelligence. Making full use the favorable characteristics of competitive intelligence, namely, responding timely and avoiding surprise, smes could minimize the losses of the crisis at the minimum cost by. In effect, competitive intelligence is a specific type of market intelligence. Competitive intelligence definition entrepreneur small. This presentation will explore their application to cross. Wright and calof 2006 in their small study examining published competitive intelligence research in three countries.
Jan 02, 2010 competitive intelligence solution an apposite competitive intelligence solution provides a tested platform for conducting databanking, synthesis, analysis, structured evaluation and sophisticated report generation. The field of competitive intelligence ci as a distinct business discipline emerged in the 1980s. Abstract key intelligence topics kits and key intelligence questions kiqs are routinely used in various intelligence endeavors. Following this definition it also implies that the supporting tasks. Competitive intelligence is the art of analyzing competition their historic and current moves and predicting how they are likely to behave in the future. Journal of competitive intelligence and management volume 1 number 3 winter 2003 the journal of competitive intelligence and management jcim is a quarterly, international, blind refereed journal edited under the auspices of the society of competitive intelligence professionals scip. Shaping business strategy through competitive intelligence. Du toit 2015 provided a definition based on metaanalysis of 338 articles about ci. Competitive intelligence systems help decision makers identify opportunities to improve the company or organizations strategic position among competitors, customers, and suppliers. According to medical dictionary intelligence is the potential ability to acquire,retain, and apply experience,understanding,knowledge,reasoning andjudgment in coping with new experiences and in solving problems.
Intelligence glossary us institute for competitive intelligence. From part 1 of this course, we learned that competitive intelligence relies on a very analytical process to transform data and information into intelligence. It offers approximations and best views of the market and the competition. In the same market, companies always compete for customer revenues and to achieve a dominant position. Competitive intelligence and compliance competitive intelligence is the legal and ethical collection and analysis of information regarding the capabilities, vulnerabilities, and intentions of a business competitor competitive intelligence can allow a company to compete more effectively but the collection and use of competitive. According to definition of scip competitive intelligence is the process of. We also understand that competitive intelligence is not just about studying the competition, but studying the entire external landscape customers, suppliers. Competitive intelligence templates must be easily consumable by your stakeholders. In a brief definition we can say that cti is different from. Competitive intelligence ci is the process by which organisations gather information on competitors and the competitive environment, ideally using this in their decisionmaking and planning processes with the goal of adjusting activities. Competitive intelligence and compliance competitive intelligence is the legal and ethical collection and analysis of information regarding the capabilities, vulnerabilities, and intentions of a business competitor competitive intelligence can allow a company to compete more effectively.
What is competitive intelligence a systematic and ethical program for gathering, analyzing, and managing information that can affect your companys plans, decisions, and operations it is the gathering and analysis of information from human and published sources about market trends and industry developments that. The importance of competitive intelligence in companies is practically become. Competitive intelligence pintelligence part 1 of 2 art 1 of 2 art 1 of 2 prepared by. Strategic and competitive intelligence professionals scip, formerly the society of competitive intelligence professionals, is a global nonprofit best practice sharing community for experts from industry, academia, government, and nonprofits in strategic intelligence. Basic intelligence cycle3 of competitive intelligence. Pdf the leading drivers of strategic chance in our current environment are. Dimensions of efficacy at each phase are also identified, and they are posited to be influ. If you are creating a 20page report for an audience that is perennially short on time e. Its a critical component for understanding how to create and maintain competitive advantage in the market. Intelligence is the ability to learn, exercise judgment, and be imaginative. Competitive intelligencedefinition wikibooks, open books. Competitive intelligence best practices for global companies insource 2008, february 56th, 2008 prague rainer michaeli director institute for competitive.
Over the past 20 years he has presented training programmes in australia, brazil, brunei. Ci is a systematic and ethi cal programme for gathering, analyzing, and. The purpose of this analysis is to derive some meaning from the piles of. Competitive intelligence ci is the gathering of publiclyavailable information about an enterprises competitors and the use of that information to gain a business advantage. Tailor competitive intelligence templates to stakeholder needs. One of the main goals of the competitive intelligence is to acknowledge the role of early warning and prevention of surprises that could have a major impact on the market share, reputation. How to use competitive intelligence to gain an advantage. How to develop a world class market intelligence function. He spends most of his time advising companies on setting up and further developing their corporate intelligence programs, while being a recognized speaker and workshop leader in the field of strategic market intelligence. Where to put your competitive intelligence unit in many large companies the competitive intelligence unit is placed in the strategic planning office which reports directly to top management. How to develop a competitive intelligence information. Competitive intelligence helps to evaluate the capabilities of competitors in the market, legally and ethically, and to develop response strategies. The general opinion of all these business information professionals is that competitive intelligence deals with the collection, selection and.
Benjamin gilad is the cofounder and president of the first training institution dedicated to the cip competitive intelligence certification. Inconsistencies between organizations and agencies in terminology use also exist. In other words, it is a legal and ethical practice that helps in improving the firms competitive ability and capacity. In many systems, including databases and internal websites, you can tag entries with keywords to facilitate searches. Harry is a hotelier who is getting ready to open a new brand of hotels.
Continuous process of monitoring a firms industry or market to identify 1 current and future competitors, 2 their current and announced activities, 3 how their actions will affect the firm, and 4 how to respond. In this sense, competitive intelligence determines the survival of enterprises. Intelligence glossary us institute for competitive. When deciding on a definition for a specific term, vernon first conducts a comprehensive search to. First, the structure of the intelligence cycle is clearly a process, and when you run a large scale intelligence system in your company all you have to do is expand the steps larger.
Competitive intelligence monitoring in the risk prevention. Glossary of terms used in competitive intelligence and knowledge management vernon prior is a leading practitioner in competitive intelligence ci and knowledge management km. Scip, the society of competitive intelligence professionals, defines it as follows. Scip strategic and competitive intelligence professionals. Johnson, managing director of aurora wdc, provides this definition of competitive intelligence. Strategic and competitive intelligence professionals. Sure, its a buzzword now, but competitive intelligence has always been a powerful tool for any leader trying to gain an organizational advantage.
The goals of competitive intelligence include discerning potential business risks and opportunities and enabling faster reaction to competitors actions and events. The rand corporation is a nonprofit research organization providing objective analysis and effective solutions that address the challenges facing the public and private sectors around the world. The society of competitive intelligence professionals scip defines competitive in telli gence as follows. Competitive intelligences real value is to provide managers with the organizational tool to learn what the competitor will do, not what the competitor has already done. Pdf paper represents positive effects of competitive intelligence ci usage.
Intelligence differs from data and information since it requires some form of analysis. Archie is a software tool for locating files stored on anonymous file transfer protocol ftp. The book provides guidance on how to work strategically with competitive intelligence, methods for monitoring and analysis and a processoriented. The definition of competitive intelligence ci varies according to different. Competitive intelligence for information professionals explores the role of strategic information and intelligence in organizations, and assesses the values and needs of intelligence in organizations. The first organizational model for competitive intelligence was published by ben gilad and. Ci is the purposeful and coordinated monitoring of your competitors, wherever and whoever they may be, within a specific marketplace. Ci reveals opportunities and detects early warning signs so companies can seize market opportunities and bypass. In microsoft windows, for example, you can tag content that doesnt contain text, such as images, audio, and video files, in. The art of collecting information on ones competitor. Competitive intelligence shouldnt just be about your. Competitive intelligence software 2020 best application. Competitive intelligence for dummies cheat sheet dummies.
Therefore, the competence of competitive intelligence has become essential for companies seeking to win in an increasingly competitive and challenging market. Competitive intelligence ci is the process by which organisations gather information on competitors and the competitive environment, ideally using this in their decisionmaking and planning processes with the goal of adjusting activities to improve performance wright et al. Master thesis role of competitive intelligence in strategic. He wants to make sure that he is able to launch his new concept before any of his. Pdf competitive intelligence, a definition olivier. For over a decade, energy intelligence has undertaken bespoke projects, delivered authoritative studies and compiled industryrecognized benchmarking standards for. You will find below 50 analysis techniques you should master. Intelligence is assimilation to the extent that it incorporates all the given data of experience within its. Intelligence is a general factor that runs through all types of performance. There is little known about the extent of competitive intelligence research and competitive intelligence as an academic study field. Competitive intelligence is the act of collecting and analyzing actionable information about competitors and the marketplace to form a business strategy.