In this analogy, the captain of a ship in the ocean cannot worry about only what occurs on board. In order to stay on course and avoid rough waters, uncharted territory, or unforeseen dangers, the crew and the captain need to also keep a close eye on the surrounding environment and changing conditions. Are there any threatening ships in the distance? Is the ship on the charted course? What lies ahead? In order to navigate effectively attention needs to be focused within the ship and without.
Competitive intelligence is the outward attention that companies need to dedicate to their markets to ensure they are headed in the right direction and they are not blindsided by unknown activity. Competitive intelligence, as it applies to your company, focuses on three main aspects:
When your company gets a deeper understanding of each of these factors, you will know how to maximize success in each arena to sharpen your competitive edge and excel.
Competitive intelligence as it stands today is often industry driven. Certain industries have adopted it as a necessary practice and regularly focus attention on it to better inform their business strategy. For instance, pharmaceutical, software, and aerospace and defense companies use CI as a key function to develop and deliver unique products to market ahead of their competition. In fast-paced markets with long development cycles such as these, not looking at outward developments is a risk these companies are not willing to take.
Companies use competitive intelligence to look outward to monitor market trends, predict competitor developments and plan a dynamic strategy that maximizes opportunities and mitigates damage from threats.
However, competitive intelligence also works to protect intellectual property. Counter-CI tactics can be used to protect your intellectual property and doing so is crucial when planning to launch a new product or announce a market-changing merger. The time and money it takes to fund, develop and market a new product could be wasted if a competitor intercepts information about your plans and launches a similar product before your own goes live.
Intellectual property has a range of importance and is managed differently across industries, so it is important to consider the value CI and Counter-CI might play into protecting the intellectual property at your organization as it relates to the rest of your market and industry. Just remember, if you are watching your competitors, your competitors may also be watching you.
In a recent trend, marketers have increased their reliance on competitive intelligence and have turned to it as a way to help spark innovation and stay fresh in a constantly evolving industry. Marketers have the unique challenge of communicating value propositions and information about the business in a new and interesting way that sets an organization apart from their competitors.
Marketers often feel the pulse of the consumers, but when a product is preparing to launch, it is especially important to have a pulse on your competitors as well. Ensuring your angle of approach is unique to competitors', but is still accessible and beneficial to consumers, is key.
Marketers have turned to CI out of necessity, taking on more of the responsibility of competitor research due to the downtrend in companies staffing independent competitive and market intelligence departments. Modern competitive intelligence is a collaborative effort and this responsibility is easily lumped in with a marketer's normal tasks. As a core function that relies heavily on collaboration with other departments, the marketing department is uniquely suited to take on competitive intelligence and act as the "CI Quarterback" for the organization.
In order to make the most of the competitor research a team tasked with CI collects and to manage the increased workload, there needs to be an easy way to share competitor analysis and collaborate across departments. Sharing information effectively ensures there are no knowledge gaps and competitor research won't be siloed to only the marketing department.
Getting a lay of the land on how competitors are positioning certain products will help to inspire different takes on the same idea. Likewise, competitive intelligence can determine and assess the different marketing channels competitors are using to market their product. Analysis of these channels will show which are effective and which channels are open for optimization. Marketers can use this information to fuel creativity and solidify their competitive advantage.
A number of resources exist to educate you on competitive intelligence and the way the field has evolved over the years. Learning more about the basics of competitive intelligence will assist you in your attempts to develop a competitive intelligence function inside your organization.
The following are some recommended competitive intelligence resources to explore:
Once you understand how competitive intelligence will be important to your company's success moving forward, you need to map out how you plan to accomplish attaining actionable competitive intelligence. Map out your competitive intelligence plan in layers. First, you need to identify what it is you want to know from your competitor research. Second, identify the time, cost and overall scope of your competitor research. Creating a competitive intelligence plan is crucial to get the most actionable insights from your competitor research and prevent wasted time focusing your attention in too many different directions. It is important to stay focused to strategically invest your team's time, money and effort into the competitor research. In some cases, your competitive intelligence plan will require additional resources to execute. These could include a consulting firm to support competitor research and analysis and/or a competitive intelligence software to support knowledge management and ongoing competitor monitoring.
We've broken our suggested workflow into the 5 Stages of Competitive Intelligence Maturity. Here are some key takeaways from that resource and some questions to consider when starting out with competitive intelligence.
1. Information Planning:
2. Information Collection:
3. Information Organization:
4. Information Analysis:
5. Information Production and Dissemination:
Use competitive intelligence tools to make your competitive intelligence efforts as streamlined and beneficial to your company as possible. Making the most of your strategic efforts, as well as researching consulting and software options to additional support, will make competitive intelligence a regular part of your business plan to identify new opportunities and reduce the risk of market surprises.
Ensuring your competitive strategy can stand the test of time and remain flexibility to change is a matter of defining a strategy that is dynamic and can adapt easily to address changing market trends. Dynamic strategic planning incorporates a higher level, end-goal vision. Instead of thinking in strategic increments, make sure you can loop each activity back to the end goal. This will ensure that if unforeseen difficulties or hurdles arise, your team will be able to plan ahead, instead of getting caught up in the issue of the moment.
Make sure you and your team regularly check in and ask: How does this trace back to our long term goals and how will we maneuver around possible issues to stay focused on our end goal? Work to keep each other on track, or gain an outside perspective to help advise on strategy.
Competitive Intelligence Analysts
Competitive intelligence analysts offer industry expertise and can help to guide your competitor research to be more productive. When high-stakes decisions are on the line, make sure your business plan is backed by more than emotion and personal experience. An outside, expert perspective will offer clarity that internal team members might have lost. A certain level of objectivity and the ability to back decisions with data can be the difference between a successful product launch and taking a large financial hit due to bad timing, marketing or strategy.
Competitive Intelligence Software
Competitive intelligence software can help you filter information, as well as organize and produce competitor analysis, reduces a certain amount of internal effort, money and time spent on competitive intelligence efforts. Often, dedicating an internal team to the task of competitive intelligence will take those people away from their normal tasks, which can decrease productivity and ultimately produce lesser quality internal work. Competitive intelligence software will minimize this impact and can be used as a centralized source of competitor research and analysis for your organization to reference. This results in less time spent on competitor research and a reduced chance of unnecessarily duplicating effort across your organization.
Referring back to our original analogy for competitive intelligence as the external forces (other ships, etc.) impacting the voyage of a ship, ensure your ship is headed in the right direction and is well-equipped to handle and avoid whatever obstacles might arise. Strategic planning, competitive intelligence analysts and software can improve the way your company uses competitive intelligence to its benefit to lookout for new opportunities and potential threats. Likewise, implementing competitive intelligence into your strategy will protect your company's intellectual property, your prospective product plans and your ability to maintain a strong and prosperous standing in your market.
Gain and maintain a competitive advantage with competitive intelligence tools and resources.
Two pillars of the strategic intelligence triad, competitive intelligence and knowledge management, are essential for businesses in high-risk industries. Explore the "who" and the "how" of investing in these functions as part of a comprehensive intelligence strategy.Register Today