Today's Business Environment of organisations is characterized by hypercompetition, where too many organisations are pursuing too little business. There is not enough demand to go around for all providers and services.
The knowledge base and capability to manage in this hyper- competitive world is called Competitive intelligence. It is the process of insight about future scenario and requires that we go from data to intelligence.
for example-
Data- Prices for our products have dropped by 5%
information - It is because of lower labor costs
intelligence- our key competitors is about to acquire new facility in India and that will increase the competition in next year/months.
Difference between data, information and intelligence
Data- Unrelated pieces of information and
Information- Increase knowledge derived by understanding the relation of data.
Intelligence- Organizing information to fully appreciate the implication and impact on the organisation.
Competitive intelligence has some basic forms such as market research and benchmarking. Good Competitive goes beyond simple research. It attempts to answer specific critical questions that can impact the organisations.
1. How is the competitor XYZ is able to to grow XYZ able to grow and capture market share.
2. What new products will competitor ABC develop and when will release this products.
3. What are the core competencies of competitor DEF?
4. Can we compete with new business lines or should we acquire another company to establish our market share.
Competitive Intelligence requires old fashioned analysis and filtering, somewhat like a detective who wants to solve a case- you can't automate the insights derived form C.I. It takes very intense and serious focus in a very short period of time.
Regardless of the tools businesses use, the single indispensable element to C.I is the human factor : the smart experience and instinct that can turn huge collection of dead facts into live intelligence that plays a central part in making business decisions
Competitive intelligence helps in decision making in the illusive and uncertain conditions. Strategy formulation process deals with incomplete options, ambiguous strategic options, difficult to evaluate . Competitive intelligence helps in this process.
Importance of Competitive intelligence
1. Sources of best practices
2. Strategy formulation and strategic analysis.
3. Isolates performance gaps in relation to competion.
4. Helps areas of improvement risks threats opportunities.
Tools of C.I
1.Environmental mapping - five forces model.
2.Organisational Appraisal
3. Wargames
4.Four Concerns analysis
The knowledge base and capability to manage in this hyper- competitive world is called Competitive intelligence. It is the process of insight about future scenario and requires that we go from data to intelligence.
for example-
Data- Prices for our products have dropped by 5%
information - It is because of lower labor costs
intelligence- our key competitors is about to acquire new facility in India and that will increase the competition in next year/months.
Difference between data, information and intelligence
Data- Unrelated pieces of information and
Information- Increase knowledge derived by understanding the relation of data.
Intelligence- Organizing information to fully appreciate the implication and impact on the organisation.
Competitive intelligence has some basic forms such as market research and benchmarking. Good Competitive goes beyond simple research. It attempts to answer specific critical questions that can impact the organisations.
1. How is the competitor XYZ is able to to grow XYZ able to grow and capture market share.
2. What new products will competitor ABC develop and when will release this products.
3. What are the core competencies of competitor DEF?
4. Can we compete with new business lines or should we acquire another company to establish our market share.
Competitive Intelligence requires old fashioned analysis and filtering, somewhat like a detective who wants to solve a case- you can't automate the insights derived form C.I. It takes very intense and serious focus in a very short period of time.
Regardless of the tools businesses use, the single indispensable element to C.I is the human factor : the smart experience and instinct that can turn huge collection of dead facts into live intelligence that plays a central part in making business decisions
Competitive intelligence helps in decision making in the illusive and uncertain conditions. Strategy formulation process deals with incomplete options, ambiguous strategic options, difficult to evaluate . Competitive intelligence helps in this process.
Importance of Competitive intelligence
1. Sources of best practices
2. Strategy formulation and strategic analysis.
3. Isolates performance gaps in relation to competion.
4. Helps areas of improvement risks threats opportunities.
Tools of C.I
1.Environmental mapping - five forces model.
2.Organisational Appraisal
3. Wargames
4.Four Concerns analysis
5. Market Research
6.Bench Marking-
Imitating the industry leader, comparing resource, capabilities, processes strategy at the industry best practices
.
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