Chapter 4: Strategic Decision Enablers

Telkom Goes Mobile

Question 1:
Identify possible Key Intelligence topics (KITs) that Telkom needs to address in its
CI activities in support of its strategic decision making process?
Nuraans Answer:
Competitive intelligence (CI) is described as activities that are used to engage in
environment scanning that focuses on the external environment in terms of
how and when should collect intelligence to support the strategic decisionmaking.
Competitive intelligence is the process of systematically scanning the business
environment, and identifying and assessing potential opportunities and threats.
CI has evolved to not only focus on competition but also the broader business
environment, this now includes aspects such as Competitors and
Complementors; Customers and Distribution Channels; Suppliers, Economic
Environment, Technological Environment and Industry Regulators and Legislation.
CI serves as an early warning system that identifies future opportunities and
threats to the organisation. CI further supports the strategic decision-making
process and provides feedback into the strategic control process.
CI process which is commonly known as the CI cycle and includes 5 steps. These
steps are:
Strategic planning process; Key intelligence topics (known as KITs); CI collection
plan; CI gathering and evaluation and CI analysis
Telkom should address the following CI activities in support of its intention to
enter the mobile telephony market in South Africa in their strategic decisionmaking process.
KITs - In this process, the organisation must determine the focus areas for CI as it
is impossible to monitor the entire business environment. This is not limited to
normal scanning activities.
Competitors, Customers and distribution channels, Technological environment:
Assessment of Telkoms competitors which are: Who are they; what are they
planning; what are their strengths and weakness and how will they react to our
strategies?
Telkoms major competitors are MTN, Vodacom, Cell C, and Neotel as described
in the case study.

The assessment of customers and distribution channels which are: What are
their needs, values, and behaviour? Which customers are at risk of defecting to
the competition?
Telkoms existing and future customers are at risk of defecting to the competition
as Telkom does not offer a mobile solution.
According to the case study, Telkom intends to differentiate its mobile service
and product offering. An integrated bundle offering would offer superior speeds
and quality through the fixed-line, including the advantages of mobility when
required by the customer. This will support retention of their existing customer
base and market share and technological environment.
It was identified that Telkoms CEO, Reuben September saw opportunities in the
mobile data market as opposed to the voice market which was being viewed as
almost saturated by its competitors.
According to the case study, Telkom intends to use its strengths of its fixed-line
network to differentiate its mobile service on quality and a fully converged array
of products and services, which the company felt that its Next Generation
Network and access to the latest technologies will provide further value to their
customers.
This also leads to more than one CI aspect being both customers and distribution
channels and technological environment.
Rasheeds Answer:
The key intelligence topics Telkom needs to address in its CI are its competitors
(MTN, Cell C) and its complementors such as fixed line networks and its Next
Generation Network. Also its customers and distribution channels needs to be
analysed effectively. Distribution channels such as customer care, marketing,
logistics taking into account the groups share of voice revenue. Suppliers also a
competitive intelligence point as Telkom felt that its Next Generation Network
and access to the latest technologies will provide further value to this service.
Telkom would also have to address the economic environment such as including
economic climate, fluctuation of the economy, CPIX, Inflation rates , interest
rates, exchange rates etc. also the technological environment its in and one its
entering in such as the mobile telephony market.
Demis Answer:
Strategic Key Intelligence, Early Warning Key Intelligence and Key Player Key
Intelligence.
Nikkis Answer:

 Competitors and complementors: Who are they, what are they planning,
what are their strengths and weaknesses, and how will they react to our
strategies?
Customers and distribution channels: What are their needs, values and
behaviour? Which customers are at risk of defecting to the competition?
Suppliers: How reliable are they? What ambitions do they have, and how
will this affect the organisation?
Economic environment: What are the key changes in economic indicators,
and how will they affect the organisation?
Technological environment: What new technologies are emerging that
could present an opportunity or threat?
Industry regulators and legislation: What new legislation or regulation is
pending, or how might future changes affect the organisation? Who is
influencing legislation or regulation?
Telkom as a business should consider the above aspects with regard to their
strategic decision-making process.
a.

Telkom has to ascertain who their competitors are and analyse whether they

are a serious threat to the business.

b. In terms of their customers and distribution channels. Who are our
customers and what are their needs? Are we able to meet these needs and
how are we going to go about doing that?
c. Economic environment: Whatever changes in the economy are we able to
adapt to these changes?
d. Technological environment: They have to scan the industry to ensure that
they do not miss out on new technology out there that will make an impact
on their bottom line
e. Industry regulators and legislation: Telkom has to adhere to these and ensure
that changes to legislation does not adversely affect their bottom line.
Shareekas Answer:
The first step for firms to identify their key intelligence topics is through
information gathering. The information gathered can be used for:

Strategic planning

Possible mergers

New market decisions

Once KIT information is gathered, they must be categorized to allow for proper
analysis and presentation to management in the following order:
Strategic KITs:
Contributes to key decisions in relation to strategic formulations and
implementation for the company. Strategic KITs are used to determine actions
such as investment decisions, global expansion, technological competitiveness,
global alliances or acquisitions.
Early warning KITs:
Identify forthcoming threats and opportunities for the company in the market.
Key player KITs:
Arise from market rivalries, new entrants and substitute products.

Zaheers Answer:
Competitors
Customers and Distribution Channels
Suppliers
Economic Environment
Technological Environment
Industry Regulators

Question 2:
What integrating mechanism would be of use to Telkom in its strategic decision
making process with regard to its mobile operations?
Nuraans Answer:
The value of integrating mechanisms lies in integration of external, unstructured
data which is known as CI with internal historical, highly structured data which is
known as business intelligence (BI) to develop a richer picture of the
organisations environment, and provide insights that would otherwise not be
possible. Integrating mechanism refers to people, process and technology as well
as the interaction between these elements in order to add the most value.
People provide the creative insights that cannot be duplicated by technology or
process thus making it critical. In the People aspect, includes intelligence teams,
the executive intelligence officer and intelligence specialists. The Process aspect
addresses the knowledge management, the process of amplifying weak signals
and war gaming. A critical aspect of knowledge management is the link between
CI and BI. Lastly, the Technology aspect focus on two categories of software,
such as planning and decision-support tools and artificial intelligence (AI).
Based on the case study of Telkom, all three integrating mechanism (people,
process and technology) would be of use to Telkom in its strategic decisionmaking process.
With regards to People Telkoms previous relationship with Vodacom, creative
insights exists within Telkoms workforce thus they should leverage on this.
Furthermore the insights gained during this period during the Vodacom
relationship will provide knowledge management to support and integrate the
learning gained during this period, thus creating the link between CI and BI
(process). These insights enable the strategic decision-making process.
The use of a technology solution should convert information gained from the
people and process mechanisms to be transformed into useful competitive
intelligence to enable the strategic decision-making process.
Rasheeds Answer:

Telkom would use the CI Cycle as a mechanism. A summary of the CI sources.

Telkom would also use the CI Typologies.

Demis Answer:
People, Processes and Technology.

Nikkis Answer:
Telkom could use:
People as Integrating Mechanisms
Intelligent Teams: making use of multidisciplinary intelligence teams which adds
value to the strategic process of the business
Intelligence Specialists: Also multidisciplinary and making use of analytical skills.
Executive Intelligence Officer: ensures a narrowing of distance between the
strategic process and the intelligence processes
Processes as well as integrating mechanisms:
Knowledge management: the ability of the organisation to identify, create,
extract, combine, manage and share knowledge among its members.
Amplifying weak signals: Creating a competitive advantage by gaining
intelligence that few or no other businesses in the industry have
Executive war gaming: Where management in the business act or role play as
different organisations in the industry i.e. consumers, suppliers etc. in order to
gain insight into competitive issues.
Technology as an integrating mechanism:
Planning and decision support tools and artificial intelligence. These refer to a
variety of tools in several categories that may be used to support the planning
and decision-making processes in an organisation.

Shareekas Answer:

People as integrating mechanisms.

Multidisciplinary intelligence teams
Executive Intelligence officer
Intelligence specialists

Processes as integrating mechanisms

Knowledge management
Amplifying weak signals
Executive war gaming

Technology as an integrating mechanism

Planning and decision support tools
Artificial intelligence
Intelligent agents

Zaheers Answer:
People as an Integrated Mechanism
Processes as an Integrated Mechanism
Technology as an Integrated Mechanism

Discussion Questions - Chapter 4: Strategic Decision Enablers

1. Explain the link between CI, BI and KM
Nuraans Answer:
Competitive Intelligence: Systematic scanning of the business environment in
order to identify and assess potential opportunities and threats.
Business Intelligence: Is involved with patterns relationships and trends about
customers, suppliers, business partners and employees.
Knowledge Management: Ability of the organisation to identify, create,
extract, combine, manage and share knowledge among its members.
The link can be explained by the business wanting to be market leaders and at
the forefront of technological developments in their industry.
Rasheeds Answer:
Basically all these mechanisms will have a positive effect on your organisation. If
taken seriously and effectively sustained. What these mechanisms give is a way
of discovering and understanding your business internally and externally and
what systems need to be analysed going forward and the processes to follow as
well. These mechanisms give the business a way of actually assessing
themselves
Demis Answer:
In order for a business to stay competitive, it need to put business intelligence
systems in place and the employees need to have the proper business mindset
in order to make the necessary decisions. These two share a link with Knowledge
Management because the people within the business need to apply their
knowledge and skills, such knowledge would be either Tacit Knowledge or Explicit
Knowledge.

Nikkis Answer:
Competitive Intelligence: Systematic scanning of the business environment
in order to identify and assess potential opportunities and threats.
Business Intelligence: Is involved with patterns relationships and trends
about customers, suppliers, business partners and employees (stakeholders)
Knowledge Management: the ability of the organisation to identify, create,
extract, combine, manage and share knowledge among its members.
The link can be described as a business using these three factors to ensure
sustainability and longevity in the marketplace. With Competitive intelligence

they check industry to look for either threats or opportunities. One way to scan
for these is considering customer trends; buying patterns etc. this then links
with Business Intelligence. The sharing of knowledge among the members of
the business assists in the creation of innovative ideas, identifying opportunities
etc.

Shareekas Answer:
Competitive intelligence:
Is based on gathering and analysing of intelligence about the behaviour of the
market you deal in, in order to make certain decisions based on market trends.
Competitors are part of the market trends therefore collecting of information on
competitors enables you to monitor their behaviour in order to pinpoint their
weak/strong points that will form part of CI.
It is also an ethical and legal business practice, and focusses on the external
business environment
Business intelligence is the management of a companys internal
information.
This includes the extract, transform and loading of this data in a well-designed
data warehouse in order to extract and present the data as intelligent
information. This will assist the business to make a better decisions based on
past information and therefore project possible future trends.
Knowledge management:
KM refers to a multi-disciplined approach to achieving organisational objectives
by making the best use of knowledge. KM focusses on processes such as
acquiring, creating and sharing knowledge and the cultural and technical
foundations that support them.
Zaheers Answer:
Knowledge Management promotes an integrated approach to identifying,
capturing, retrieving, sharing and evaluating enterprise information assets.
These information assets may include data-bases documents, policies,
procedures, as well as the uncaptured tacit expertise and experience stored in
individual heads. CI and BI activities constantly generate new technology, both
explicit and tacit, and the internalisation of this knowledge by the organisation
will ultimately be to its advantage.

2.In the case of a potential new competitor entering the industry, give examples
of:
a) Five key intelligence topics
Nuraans Answer:
Organisations must determine the focus areas for CI as it is impossible to
monitor the entire business environment. These focus areas are also known as
Key Inteligent Topics (KITs). It is important to note that the focus on KITs does
not mean that normal scanning activities do not take place.
Rasheeds Answer:
Observation of competitors facilities and operations e.g. Trade Shows,
marketing, communications, site visits, mystery shopping. (Reverse engineering
of competitive products.
Demis Answer:
Strategic Key Intelligence- contributes to key decisions in relation to
strategic formulations and implementation for the company.
Early Warning Key Intelligence - identify forthcoming threats and
opportunities for the company in the market.
Key Player Key Intelligence arise from market rivalries, new entrants and
substitute products.

Zaheers Answer:
Primary External Sources Human Intelligence/Observation (Interviews,
tradeshows, marketing communications)
Secondary External Sources Public Domain (Government Records, Corporate
Filings, Annual Reports, Sectoral Research)
Internal Sources (Sales Staff, BI Systems)
Shareekas Answer:

Strategic decisions and actions which includes the development of strategic

plans and strategies
Early warning topics- include competitor initiative, technological surprise and
governmental actions.
Descriptions of key players within the specific market place, including
competitors, customers, suppliers, regulators and potential partners.

b) The CI activities that will assist strategic decision making

Nuraans Answer:
Competitors and Complimentors Who are they? What are they planning?
Customers and Distribution channels What are their needs values and
behaviors?
Suppliers How reliable are they?
Economic Environment What are the key changes in economic indicators and
how will they affect the organisation?
Technological Environment What new technologies are emerging that could
present an opportunity or threat?
Industry Regulators and Legislation what new legislation or regulation is
pending or how might future changes affect the organisation?
Rasheeds Answer:
Identifying Key Intelligence Topics (KITS)for a start. Competitive intelligence
collection plan, gathering and evaluation and finally CI analysis. CI Sources as
well, such as internal sources including intelligence obtained from employees.
Human Intelligence will assist interviews with analysts.
Demis Answer:
Competitors and Complimentors
Customers and Distribution channels
Suppliers
Economic Environment
Technological Environment
Industry Regulators and Legislation

Zaheers Answer:
Step
Step
Step
Step

1
2
3
4

Strategic Planning Process

Key Intelligence Topics (KITs)
CI Collection Plan
CI gathering and evaluation

Step 5 CI Analysis
Shareekas Answer:
Step 1: Strategic planning process
Step 2: Key intelligence Topics
Step 3: CI Collection plan
Step 4: CI gathering and evaluation
Step 5: CI Analysis
c) The BI that will assist strategic decision making
Nuraans Answer:
Source systems

Legacy systems

Enterprise resource planning (ERP) systems such as SAP

Customer relationship management (CRM) systems

Online transaction processing (OLTP) systems

Clickstream data
Data warehouse

Data warehouse: Provides rich, timely, clean, and well-structured

information to BI analysis tools

Data marts: Small-scale data warehouses designed to meet a specific

function or departments BI needs
Data extraction and reporting tools

Online analytical processing (OLAP)

Data mining

Executive information systems (EIS) and management dashboards

Rasheeds Answer:
All BI assist in Strategic decision making. E.g source systems will help in SAP
systems streamlining business information and make updating and obtained
business information quicker and more efficient. Source systems would
basically make everything concerning business information accessible at a click

of a button. This would save a lot of time and money with little red tape
involved. Furthermore this could help in strategic decision making going
forward, also data extraction and reporting tools will assist in strategic decision
making as executive information systems (EIS) and management dashboards
will be available to top level management, the people in the organisation
responsible with strategic decisions.

Demis Answer:
Source systems
Data warehouse
Data extraction and reporting tools

Zaheers Answer:
Business Intelligence Source Systems
Data Warehouse
Data Extraction
Reporting
Shareekas Answer:
Source systems:
Legal systems
Enterprise resource planning systems
Customer relationship management systems
Online transaction processing systems
Clickstream data
Data Warehouses and Data Marts:
Data extraction and reporting:

d) The integrating mechanisms that will be useful in integrating and

analysing intelligence
Nuraans Answer:
People as integrating mechanisms
1. Multidisciplinary intelligence teams
2. Executive intelligence officer (EIO)
3. Intelligence specialists
Processes as integrating mechanisms
1. Knowledge management (KM)
2. Amplifying weak signals
3. Executive war gaming
Technology as an integrating mechanism
Planning and decision-support tools
Simulation tools
Planning templates
Artificial Intelligence (AI)
Expert systems
Artificial neural networks (ANN)
Intelligent agents
Rasheeds Answer:
People, multidisciplinary intelligence teams, executive intelligence officers,
intelligence specialists.
Processes, knowledge management- tacit to explicit, war gaming.
Tacit: socialisation sharing, creating knowledge through explicit experience.
Internalisation (learning by doing)
Explicit: externalisation articulating tacit knowledge through dialogue and
reflection.
Technology:
Planning and Decision-Support Tools

Simulation Tools
Planning Templates
Artificial Intelligence (AI)
Expert systems
Artificial networks
Intelligence Agents

Demis Answer:

People
Multidisciplinary intelligence teams
Executive Intelligence Officer
Intelligence Specialists
Process

Knowledge management
Amplifying weak signals
Executive war gaming

Zaheers Answer:
People as integrating mechanisms
Processes as integrating mechanisms
Technology as integrating mechanisms
Shareekas Answer:
People as integrating mechanisms
Processes as integrating mechanisms
Technology as an integrating mechanism