Competitive intelligence

Type: research paper

Author Sue Myburgh
Publication: The Information Management Journal
volume pp. 46-55
Date of publication March/April 20

Summary :
Changes in organizations and their operation have led to changes in the various disciplines
that handle organizational information, including librarianship and records and archives
management (RIM). Knowledge management (KM) and competitive intelligence (C) are two
new areas that have developed to support corporate information resource management
However, many of the more mundane aspects of managing documents can now be
performed automatically by sophisticated computer systems, leaving the professionals free
to focus on the content of the documents and the users of such information. Librarians often
call themselves "information managers," and records managers have become RIM
professionals or strategic information managers.
If RIM professionals are to facilitate the strategic use of information contained in the
documents they manage, they need to have an awareness of KM and CL KM is important to
RIM practitioners, as it involves capturing corporate memory: CI is important, too, as it
involves identifying strategic information and making it available to decision-makers, RIM
professionals can no longer focus only on what is happening inside their own organizations.
They must be aware of what is happening in other organizations in their industries and in
international standards, as well as beyond their professional and industrial boundaries, Even
though RIM professionals may not undertake the CI function in its entirety, they are in a
position to contribute to the process, in particular by coordinating and analyzing the
strategic information contained in records.

What Is CI?
There are many definitions of Cl, all centering on ethical and legal selection, collection,
processing, interpretation, analysis, and distribution of highly specifie and timely information
concerning industry rivals and the external business environment Cl is about mining
information sources and using appropriate analytical techniques to put this info together

The objectives of CI include:

- Managing and reducing risk
- Making knowledge profitable
- Avoiding information overload
- Ensuring privacy and security of information
- Using corporate information strategically
- Improve planning and decision-making within the organization
Cl seeks to provide "early warning signals to alert management to both threats and
opportunities" and to assist in the decision-making process at all levels is the legal collection
and analysis of open-souree, or public domain, information-and does not involve illegal,
immoral, or unethical activities .

Basic CI Functions
Seven steps of CI can be identified
Ask the question The first step is identifying the key decision-makers in the
organization and determining their intelligence needs
Look at the organization, industry, and competitors: Getting to know the
organization, her players, companies, suppliers, and customers, laws and regulations,
newly enacted or pending, that may have bearing on the industry's future.
Identity information Sources They can include customers, industry periodicals,
promotional materials, marketing research, analysis of competitors' products,
competitors annual reports, trade shows, distributors. the Internet, news media.
academic research. specialists, associations, and patents etc.
Information-gathering techniques: gathering the information requires using certain
tools and techniques. Two notable information techniques in CI are: environmental
scanning and competitive benchmarking. Environmental scanning includes the
gathering of information concerning the organization's extemal environment, the
analysis and interpretation of this information, and the use of this analyzed
intelligence in strategic decision-making Competitive benchmarking entails a
thorough investigation of the desired aspect or outcome, such as actual business
practices or production costs of competitors. Benchmarks assist in anticipating the
long-term strategic moves of the organization's identified competitors, especially
when compared to the organization's resources.
Evaluation, synthesis, and analysis: this step must be preceded by two other steps
evaluation of the data and information and synthesis of the various types and
sources of data and information Evaluation: The information needs to be assessed for
quality, validity, and usefulness, Wherever possible, the origin of the information
should be ascertained and t methodologies employed in creating the information
examined and tested for accuracy synthesis: information collection is an
organizational function that requires continuous planning, coordination, innovation,
evaluation, and fine-tuning. Part of collection is bringing together and comparing
similar pieces of information from different sources that perhaps deal with, or
enhance, other topics. Analysis: Analyzing the information and gleaning meaning
from it is the most important part of CI. There are more than 100 different analytical
techniques that can be used to extract meaning from the data and information that
has been collected As a GAP analysis Porter's Five Forces product lifecycle analysis
IScurve analysis swOT TWOS) /competitor benchmarking.
Dissemination and communication: the intelligence must be communi to the key
decision-makers. The first step is ensuring that the correct intelligence makes its way
to the comect destination. For optimal value and use, the information should be
coordinated. checked, cross referenced, compared, categorized, customized and
condensed .
 outcomes: The final result of the information gathering. interpretation.
recommendation processes of Cl is the action that is taken by a decision-maker,
Making the right decisions is crucial to the success orevery organization.

Managing the Intelligence Program

many other management functions. Cl management revolves around five key elements:
plan, people, position, processes, and performance.
Plan : Planning involves devising the right strategy and determining Cl requirements
People: It is naturally important to get the right people with the right skills doing ci
However, all employees have a CIrole to play.
Position: Cl must be integrated into the business, with senior management support.
It should also be located at an appropriately senior level.
Processes: The business processes, including aims, objectives, and information
needs, must be well understood for Ci to take place.
Performance: Measuring CI performance is important to ensure continued
management

Another important component of Cl management is the counter-competitive intelligence

program (CC). The CCI program must reduce the vulnerability of the corporation's
competitive advantage and safeguard its assets from exploitation, theft, and fraud.

Beyond Organizational Boundaries

While a central locus, such as a CI officer or coordinator, may be needed to coordinate,
interrelate, and integrate the disparate streams of information and analysis produced in the
organization, it is nonetheless important to recognize the valuable contribution that can be
made by all employees, and RIM professionals in particular, who have many of the skills.
abilities, and opportunities necessary to support a CI program. RIM professionals are
perfectly placed to ensure appropriate information is identified as key intelligence and is
communicated proactively to the responsible decision-maker and to ensure that counter-
intelligence procedures are developed.