How to Beat Your Competitor Senseless - What is Competitive Intelligence?

Competitive Intelligence (CI) represents an enterprisealliance or an expansion into a new market or
practice that executes a coordinated and continuousgeographical territory
ethical and legal program for the collection, selection,2. As a response to the improved competitive position
storage, analysis and dissemination of informationof a competitors or group of competitors.
about the current business environment. The objectiveA CI program can offer additional benefits like the
of competitive intelligence is to obtain advantages overprotection of intellectual property. Effective
competitors and to answer questions of a strategicmanagement of competitive intelligence programs in
nature. Also known as Business Intelligence,mid to large scale companies can be structured in
Technology Monitoring and Competitive Analysis,different ways (i.e. centralized or decentralized, globally
Competitor Intelligence is distinguished from industrialor narrowly, or formally or informally). It all depends on
espionage.corporate culture and what is currently happening in
Competitive Intelligence can have a tremendous impactthe industry.
to an organization's overall corporate strategy,To realize the most benefits from their CI programs,
effectiveness of business units and policies andthe best organizations are learning organizations that
procedures followed by functional areas. From theleverage the key findings from competitive intelligence
strategic perspective, some activities contemplated byand respond quickly to any threats or opportunities
CI are:presented. However to get to this point, emerging
- To analyze the present and potential competitorsCompetitive Intelligence learning organization can start
with respect to their strategies and objectives and toin a more focused approach. At first perhaps using
study possible competitive responses.freely online tools to keep track of the competition and
- To investigate and to define the opportunities andother easy to implement programs. Actually going out
threats of the industry or business sector.and interacting with key players in the market or
- To keep watch and to be on alert to importantindustry and/or operating as a leader tend to naturally
changes with key customers, technologiesallow the best organizations to gain the benefits
(Technological Monitoring), legislation and other areascompetitive intelligence. That is the proverbial "being in
including related markets. Use a site like ChangeDetectthe right place at the right time" strategy.
for both free and paid CI tools.Sometimes the results of Competitor Intelligence
Competitive Intelligence also contemplates all thoseprograms from different avenues such as commercial,
activities of tactical nature which contribute to thetechnological, economic or financial can be fed into the
creation of the new prices and product promotions,organization in a dispersed or fragmented manner. In
credit risk from customers, reverse engineeringthis case, it requires a Competitive Intelligence program
attempts, third party benchmarking activities andofficer or team to put it all together for making overall
important trade shows etc. The use of Competitoror "big picture" assessments and/or recommendations.
Intelligence tools and techniques is not limited to onlyWhatever is learned from CI programs should be
large companies. Small companies can also very easilypushed out to all areas of the organization and made
leverage CI strategies quite easily and creatively. Thefreely available. After all, true Competitive Intelligence is
benefits associated with implementing Competitiveboth ethical and legal so there should be no problem in
Intelligence is classified into two groups:disseminating the information internally to be used for
1. Mitigate the risk of project failure as in thethe benefit of a stronger competitive position.
development of a new product, potential acquisition or