Competitive intelligence system

Competitive intelligence means different things to different people within an organization. For example, to a sales representative, it may mean tactical advice on how best to bid for a lucrative contract. To top management, it may mean unique marketing insights to gain market share against a formidable competitor. For any group, the ultimate goal of competitive intelligence is to help make better decisions and enhance organizational performance by discovering risks and opportunities before they become readily apparent.

Competitive intelligence system

Texelart Intelligence is information that has been Competitive intelligence system for decision making. It is important to understand the difference between information and intelligence. Information is the starting point; it is readily available numbers, statistics, bits of data about people, companies, products, and strategies.

Information becomes intelligence when is it distilled and analyzed. Combining this idea with those of competition or competitors leads to the concept of gathering and analyzing information about competitors for use in making management decisions.

Competitive intelligence provides a link between information and business strategies and decisions. It is the process of turning vast quantities of information into action. The field of competitive intelligence, as a profession, is relatively new in the U. An indication of the importance of competitive intelligence is the growth, sinceof the Society of Competitor Intelligence Professionals SCIPan organization committed to developing, improving, and promulgating the methods, techniques, and ethical standards of the group.

Competitive intelligence offers approximations and best views of the market and the competition. EXAMPLES Examples of competitive intelligence include stock traders Competitive intelligence system analyze the data on prices and price movements to determine the best investments.

These stock traders have the same data as other traders, but analysis of the data separates them from others. High gasoline prices and smaller families created a demand in the United States for smaller, more fuel-efficient cars.

Japanese automakers employed competitive intelligence methods to determine this trend and then made manufacturing decisions based on it, beating the U. Big Three to market with high quality, fuel-efficient cars. Part of this service is the monitoring of companies with which their own employees are most interested.

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This led to some early insights of emerging competitors. It has been associated in the past with the political and military intelligence used during the Cold War era.

Because of this association, many people think that competitive intelligence uses illegal, shady, or unethical means to gather information about competitors. This is not true today. Such techniques can damage the reputation and image of corporations and are not worth the risk. SCIP takes a strong position on the importance of ethics and developed a code of ethics for members.

Note the words, "legal and ethical," and the emphasis on retrieving data from "open sources. They do dig into public records and government databases and use the latest technology such as satellite photoreconnaissance and software tools such as spiders to help gather and analyze large datasets.

However, the professionals and companies for which they work do not use illegal methods. A recent survey by The Futures Group found that 80 percent of large, U. In the future, competitive intelligence activities will become standard.

The wide availability of information on the Web makes competitive intelligence more accessible to medium-size and small firms.

Software tools to analyze and disseminate intelligence also make it easier to implement competitive intelligence tools. The process of competitive intelligence is outlined in the following steps: Setting intelligence objectives i. A clear statement of the intelligence needs of the organization should be outlined by management.

If this step is ignored, the competitive intelligence department will be bogged down with too much information and possibly distracted by ad-hoc requests for data.

This step is necessary regardless of where in the organization the competitive intelligence department is located. Some corporations have competitive intelligence report directly to the CEO; in others, it is located in marketing or in research and development.A smart intelligence operation can serve as an early-warning system for disruptive changes in the competitive landscape, whether that change is a rival's new product or pricing strategy or the.

Competitive intelligence is, in part, an outgrowth of the military intelligence field. Within corporations, it is a direct outgrowth, or evolution, of market research, which uses investigation (especially understanding the strategies, capabilities, and options of competitors or rivals) to examine the marketplace.

Competitive intelligence system

Competitive intelligence systems help decision makers identify opportunities to improve the company or organization’s strategic position among competitors, customers, and suppliers. Such systems rely upon heavily qualitative information and the intuition of decision makers.

Competitive intelligence (CI) is the action of defining, gathering, analyzing, and distributing intelligence about products, customers, competitors, and any aspect of the environment needed to support executives and managers in strategic decision making for .

What is 'Competitive Intelligence '

Competitive intelligence is, in part, an outgrowth of the military intelligence field. Within corporations, it is a direct outgrowth, or evolution, of market research, which uses investigation (especially understanding the strategies, capabilities, and options of competitors or rivals) to examine the marketplace.

Competitive intelligence is the core of competitive strategy Why do evidently great organizations with great products, wise managers, and other successful strengths, go out of business? Economies of scale, the foundation on which big companies have based their dominance in the Industrial Era, is no longer an advantage.

Competitive Intelligence Definition | Investopedia