Competitive Intelligence as a Strategic Decision Making Tool The Gap Between Theory and Reality

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Competitive Intelligence as a Strategic Decision
Making ToolThe Gap Between Theory and Reality

• Nancy Shapira-Aronovic
• Formerly Director of Marketing
• The Formula Group
• Manager, Gelbart Kahana Analyst Relations
• Israel Export Institute
• The Annual Competitive Intelligence Event
• February 18th,2008
• .

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(No Transcript)
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Categories of Competitive Intelligence

• Market Intelligence
• Industry level information on
• Trends
• Government regulations
• Geopolitical issues
• Partner Intelligence
• Monitoring activities of
• Companys major suppliers
• Strategic partners
• Competitor Intelligence
• Detailed monitoring analysis of
• Key competitors
• High-level scans of other competitors
• Ongoing identification of new entrants
• Technical Intelligence
• Monitoring advancements of
• Technical developments
• Customer/Prospect Intelligence
• Determining monitoring

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Theory Vs. Reality

• Use Formal CI Model
• Use Many Sources of Information
• Monitor Competitors on a Matrix
• Gather information for a total picture
  geopolitical, regulations, trends, etc.
• CEO gets briefed regularly

• Use Informal Brainstorming Sessions
• Use Top Management and Industry Analysts
• Use informal information gathered from sales
  people and industry analysts
• Use informal information from employees and
  industry analysts
• CEOs are sales driven and want more sales/leads

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Results of Survey of the Formula Group 2007

• What Business Decisions are supported by CI?
• Corporate Strategy
• Market Entry
• MA
• Product Development/RD
• Sales and BD

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Results of Formula Group Survey

• What CI Tools are Used in the Company?
• Competitor Profiles
• Competitive Benchmarking
• Alerts for Threats
• Customer/Supplier Profiles
• Technology Assessments

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Results of Group Survey

• What sources of information do you use to make
  decisions?
• Employees
• Suppliers
• Customers
• Trade Shows
• Industry analysts
• Consultants
• Print Publications
• Internet

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Results of Group Survey

• What Tools did the company use to define a USP
  Unique Selling Point
• Industry Analysts
• Employees
• Customers
• Consultants
• CI
• Market Intelligence
• 3 Most popular Industry Analysts, Employees and
  Customers

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Group Case StudiesSuccesses and Failures

• Used Industry Analysts to get into
  RFIs/Shortlisted
• Used Industry Analysts to reach top levels of
  Large Companies (Oracle, Accenture, IBM, etc.)
• Used Reports from Industry Analysts to Gain
  Credibility with new customers
• Used Industry Analysts info to assist with Due
  Diligence and Investment processes

• Did not Use local consultant in China who warned
  against entering into a JV with the local
  partner. Cost 300k
• Heard of new license being issued and alerted
  Sales and BD staff before RFI issued
• Found out that the Competitor was being thrown
  off the project and went back to the Customer to
  be reconsidered for the project

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Most Popular CI ToolIndustry Analysts

• Heavy Use of Industry Analysts in the Group
• Gartner, Forrester, Celent, Datamonitor, Yankee
  Group, Aberdeen, Jupiter
• Use Analysts for
• MA guidance
• Feeback on existing markets
• Proactive data on new market opportunities
• Input on Product/Solutions
• Being shortlisted
• Shorten the Sales Cycle
• High Level Customer/Partner Contacts
• Competitor Information

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Content Generation
Business Action
Business Action
Strategy
Strategy
Competitive Intelligence
Competitive Intelligence
Information Aggregation
Information Aggregation
Content Generation
Content Generation
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Gap Between Theory and Reality

• Lack of Resources
• Lack of Long Term Planning
• Opportunistic Sales Process
• CI tools are underutilized
• An Ongoing Educational Process about the Benefits
  of CI for Decision Making

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• Thank you for your time
• Nancy Shapira-Aronovic
• 054-4863888
• nancy_at_gk-biz.com