What Competitive Intelligence Is And Is Not

Dr. Ahmed Nassar

Summer 2011

1. CI Is

CI Is Not

Information that has been analyzed to the point where you can make a decision.

Spying or espionage. Spying implies illegal or unethical activities.

While spying does take place, it is a rare activity.

Corporations do not want to find themselves in court, nor do they want to upset shareholders.
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Dr. Ahmed Nassar

What CI Is And Is Not

2. CI Is

CI Is Not

A tool to alert management to early warning of both threats and opportunities.

A crystal ball. There is no such thing as a true forecasting tool. Intelligence gives corporations good approximations of reality, near- and longterm. It does not predict the future.
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Dr. Ahmed Nassar

What CI Is And Is Not

3. CI Is

CI Is Not

A means to deliver reasonable assessments. CI offers approximations and best views of the market and the competition. It is not a peek at the rival's financial books.

Database search. Database searches offer just that data. They do not replace human beings who need to make decisions by examining the data and applying their common sense, experience, analytical tools, and intuition.
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Dr. Ahmed Nassar

What CI Is And Is Not

4. CI Is

CI Is Not

CI can mean many things to many people. A research scientist sees it as competitor's new R&D initiatives. A salesperson considers it an insight on pricing. A senior manager sees it as a long-term view on markets & rivals.

The Internet is not a deliverer of intelligence. It is a communications vehicle. You can find hints at competitive strategy, but also rumors. Its reach is great, but you need to sift, sort, and be selective on its content.
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Dr. Ahmed Nassar

What CI Is And Is Not

5. CI Is

CI Is Not

A way for companies to improve their bottom line. Companies, such as NutraSweet, have attributed many millions of dollars in earned revenue to their intelligence usage.

Paper info. Paper info does not deliver intelligence. Face-to-face discussions are most effective to convey CI information.

Dr. Ahmed Nassar

What CI Is And Is Not

6. CI Is

CI Is Not

A way of life, a process for everyone in the company not just the strategic planning or marketing staff. It is a process by which critical information is available for anyone who needs it and their ability to use it.

Its not a job for one smart CI person, as he/she cannot do it all ! The CI specialist keeps management informed and ensures that others in the organization become trained in ways to apply this tool within each of their SBUs.
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Dr. Ahmed Nassar

What CI Is And Is Not

7. CI Is

CI Is Not

Part of all best-in-class companies. High-quality, best-inclass corporations apply CI consistently.

CI is not an invention of the 20th century. CI has been around as long as business itself. CI may have operated under a different name or under no name at all, but it was always present.
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Dr. Ahmed Nassar

What CI Is And Is Not

8. CI Is

CI Is Not

The best-in-class intelligence efforts receive their direction and impetus from the CEO. While the CEO may not run the program, he dedicates budget and personnel and promotes its use.

Software. Software does not yield intelligence nor truly analyze it. It collects, contrasts, and compares. True analysis is a process of people reviewing and making sense of the information.
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Dr. Ahmed Nassar

What CI Is And Is Not

9. CI Is

CI Is Not

Seeing outside yourself. Companies that successfully apply CI gain an ability to see outside themselves. CI more often than not triggers new innovative ideas and products.

A news story. Media reports may contain interesting CI info, but they are very broad and are not timely enough for managers concerned with specific competitive issues.

Dr. Ahmed Nassar

What CI Is And Is Not

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10. CI Is

CI Is Not

Both short- and longterms. A company can use CI for many immediate decisions: e.g. How to price a product or place an ad. The same set of data can also be used to decide on long-term product development or market positioning.

A spreadsheet (Excel). Spreadsheets give some quantifiable result. Numbers only address one aspect of the problem. Other aspects are qualitative. They include management thinking, marketing strategy, and ability to innovate.
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Dr. Ahmed Nassar

What CI Is And Is Not

Thank You Very Much

Dr. Ahmed Nassar

What CI Is And Is Not

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