Using the Web for Competitive Intelligence Gathering

- Overview Dr. Ahmed Nassar

Summer 2011

Topics for Discussion

What Competitive Intelligence is and is not? Why It is Important? Benefits of doing CI Using the Web for CI

Dr. Ahmed Nassar

Using the Web for CI Gathering

What is Competitive Intelligence?

Sometimes referred to as corporate or business intelligence Intelligence about market trends, competitor strategies, government policies, laws, domestic and global events, etc. Purpose is to help make strategic decisions
CI Process
Collect Filter Analyze

Actionable Intelligence (decision)

Dr. Ahmed Nassar

Using the Web for CI Gathering

What Competitive Intelligence Is NOT?

Common misconception - Espionage or spying Economic Espionage Act of 1996 (USA): - Made it illegal to steal or "appropriate" proprietary information with penalties of up to 15 years in prison and fines up to $10 million

Dr. Ahmed Nassar

Using the Web for CI Gathering

What CI Is NOT (2)

Society of Competitive Intelligence Professionals (SCIP) defines CI as, "the legal collection and analysis of information regarding the capabilities, vulnerabilities, and intentions of business competitors, conducted by using information databases and other "open sources" and through ethical inquiry (http://www.scip.org/) Experts estimate - 95% of the information desired for CI purposes is publicly available*
Dr. Ahmed Nassar

Using the Web for CI Gathering

Why is Competitive Intelligence Important?

Competitive playing field has changed over time: Global marketplace forces companies to find new ways to differentiate themselves from a larger pool of competitors Economic superiority is based on technological innovation and knowledge industries Staying competitive means staying informed of what is going on in marketplace, customer demands, federal regulations, laws, and other external factors
Dr. Ahmed Nassar

Using the Web for CI Gathering

Why Is CI Important? (2)

CI takes the guesswork out of making decision: Anne Selgas, director of corporate intelligence for Eastman Kodak, says, "companies that don't use competitive intelligence are running blind* CI gives corporate decision-makers the insight and knowledge to make decisions based upon intelligence versus assumptions about marketplace trends CI process provides businesses with an objective intelligence source - not guesswork
Dr. Ahmed Nassar

Using the Web for CI Gathering

Examples of CI
CI is feedback about:
Potential alliances for joint ventures, licensing and partnerships Potential merger and/or acquisition targets Customer needs and wants Competitor existence, pricing, products/services, marketing strategy, production Evaluations for offensive/defensive marketplace tactics Marketplace trends Predicting technology readiness Regulatory activities by government, others
Dr. Ahmed Nassar

Using the Web for CI Gathering

Who does CI in a Company?

Most companies do some kind of CI activity ad hoc basis, project-based, or continuous program for gathering information. CI departments found in one or more departments: - Mergers & acquisitions - Corporate strategy - Market strategy or market research - Pricing and yield management - Business development
Dr. Ahmed Nassar

Using the Web for CI Gathering

Benefits of CI
Increase chances of success* - Avoid surprises - Identify threats and opportunities - Gain competitive advantage by decreasing reaction time - Improve planning - Improve understanding of ones own company Financial Return on Investment (ROI) - Robert Flynn, former CEO of NutraSweet, says that CI was "worth up to $50 million per year to his company+
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Internet Increases CI Accessibility

Internet and web-enabled technologies have changed the way companies do business: - E-business initiatives allow innovative ways to interact with customers and market new products and services

- Internet levels the competitive playing field; small companies can compete with larger companies by using the Internet to establish market niches As companies use the Internet as a business tool, more information is available on the web for CI purposes websites, news services, search engines, etc. this information is retrieved, filtered and analyzed to perform the CI process.
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Using the Web for CI

Sources:
Chat rooms, Listservs and newsgroups Company websites CI Consultants Internet search engines Local, government, and state websites News services Subscription services Universities
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Using the Web for CI

Free Information Advantages: No cost (in terms of access) Relevant information Broad coverage Disadvantages: Filtering time-consuming (staff time) Information integrity (authentication, timeliness)
Dr. Ahmed Nassar

For-fee Services Advantages: Sources verifiable Specialized information Reduces searching time Disadvantages: Cost Pay for more than need

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Using the Web for CI

Examples of CI resources available on the web

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Internet Sources for CI

Hoovers Online service (Directory information) - Company profiles and financial information are available from 12 million public and private companies from over 300 industries (http://www.hoovers.com/)
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Internet Sources for CI

Chatrooms, Listservs, and Newsgroups Discussion groups cover the gamut of interests and what people say in these virtual spaces can be relevant to companies - Employees discussing their work may reveal useful details about their companies and their technologies - Customers may complain about the service they received from a certain company and the quality of the product. These sites can be monitored for relevant information
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Internet Sources for CI

The government is the largest producer of free information in the U.S. Firstgov - Official government portal to government information, services, and online transactions; its search engine searches across all government websites, making it easier to find government information (http://www.firstgov.gov/) U.S. Securities and Exchange Commission website provides Company financial data (http://www.sec.gov/) U.S. Patent and Trademark Office website can be used to search for patents and trademark information (http://www.uspto.gov/) Library of Congress Thomas site searches Congressional legislation and proceedings dating back to the 1700s (http://thomas.loc.gov)
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Internet Sources for CI

Scientific and technical research information is also available from government agency websites (citations, full-text documents, fact sheets, etc.) DoDs Defense Technical Information Center (http://www.dtic.mil/) DOEs Office of Science and Technology Information and Resources (http://www.osti.gov/) NIHs National Library of Medicines MedlinePlus (http://www.nlm.nih.gov/medlineplus/)
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Internet Sources for CI

NASA Scientific and Technical Information Program Office (http://www.sti.nasa.gov/)

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Using the Web for CI Gathering

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Internet Sources for CI

NASAs Technical Reports Server (http://techreports.larc.nasa.gov/cgi-bin/NTRS)

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A Word About Web Research

Great place to start Information about companies of any size Tables, charts, graphs, etc. Several sources of quality information for free With a number of shortcomings Marketing tool for companies, offering subjective information Small percentage of information on web is indexed Difficult to search for subsidiaries, affiliates, etc. Questionable accuracy/reliability (anyone can be a web publisher) Validate and supplement with additional sources.
Competitive Intelligence Analyzing Your Competition

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Primary Sources
(human sources) Industry observers Researchers Industry analysts Stock analysts

Industry participants Suppliers Customers Consultants

Competitive Intelligence Analyzing Your Competition

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Primary Sources
(human sources) Your sales force

Trade shows go with a plan

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Competitive Intelligence Analyzing Your Competition

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Primary Sources
(human sources) Competitors Within or outside your industry

Former employees Adherence to non-disclosure agreements

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Secondary Sources
Advertisements Annual reports Business credit reports Company profiles Help Wanted Ads Foreign periodicals Newspapers Marketing literature Legislative information Patents and trademarks Press releases Speech transcripts Trade publications Whos Who and other biographical information
Competitive Intelligence Analyzing Your Competition

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Conclusion
CI is available via legal and ethical means not spying CI is critical factor in companys success strategic planning and return on investment (ROI) Internet and web-based products can enhance CI data collection Advantages and disadvantages of relying on free versus fee information for CI Companies should capitalize on the accessibility of CI and incorporate CI into strategic planning activities Failure to utilize CI will result in missed opportunities and/or unwelcome surprises
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Thank You Very Much

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