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Competitive intelligence: best practices in managing the competition

CHAPEL HILL, N.C., March 2, 2005 -- For companies that dominate the competitive landscape of their industries, it's not enough to just react to events and competitors in the marketplace.

Leading-edge companies have discovered that a key to the solution is formalized Competitive Intelligence structure that is centralized inside the company and empowered to make decisions. Such structures are supported by critical analytical tools and engage in constant communication, according to a study - Managing the Competition: Turning Competitive Intelligence into Strategy - by research firm Best Practices, LLC. The study can be found online at http://www3.best-in-class.com/rr382.htm . The study provides an in-depth investigation on how the world's most respected CI organizations collect and act upon competitor data to manage the competitive landscape.

The study reveals tactics to advance CI impact employed by world-class organizations, such as 3M Pharmaceuticals, Abbott Laboratories, Amgen, AstraZeneca, Bristol-Myers Squibb, Eli Lilly, IBM, GlaxoSmithKline, Kodak, Merck, Pfizer, Progress Energy, Roche and SAS. Specifically, some of the aspects examined by the study include:

-- Structure - Comparison of centralized and decentralized structures

-- Information gathering - Tools and processes are critical for competitive information collection

-- Communication of information and information use - Tactics used for disseminating data to key stakeholders and integrating recommendations into strategies to effectively manage the competition

The result of exclusive interviews with 27 competitive intelligence and marketing executives at 17 global companies, "Managing the Competition: Turning Competitive Intelligence into Strategy also details:

-- Performance measurement systems

-- Benchmark partner case studies

-- Comparison matrix of companies' CI operations

"During difficult economic times, excellent competitive intelligence can be the differentiating factor in the marketplace," explains Best Practices, LLC President Chris Bogan. "Companies that can successfully gather and analyze competitive information, then implement strategic decisions based on that analysis, position themselves to be ahead of the pack."

Download an online summary of "Managing the Competition: Turning Competitive Intelligence into Strategy" at http://www3.best-in-class.com/rr382.htm .

Key Findings

The success of any competitive management group is a function of its operational processes and capabilities. Certain CI groups are better positioned to manage the competitive environment because of their structure, reporting relationships, collection tools, analytical techniques and skills and capabilities embedded within their core competency. Best-in-class competitive intelligence companies manage the environment by establishing ideal CI structures, hire the best people and use even the most common tools innovatively to provide the most impact on brand strategy.

  • The greatest strategic impact of competitive intelligence on managing the competition results from an empowered centralized structure, with decentralized function-specific groups – The competitive intelligence group’s structure can be directly tied to the impact it will have on brand team strategies. The differences between a centralized CI group and a decentralized one vary in the effectiveness each has on managing the competitive environment. Benchmark research shows that centralized CI groups are better positioned to impact overall brand strategy, whereas decentralized groups are highly successful at affecting tactical initiatives. The ideal structure is a strong empowered centralized structure with function or brand-specific groups more closely aligned to those functional or brand teams.

  • Company-wide support for competitive intelligence is vital to the success of the group - The appropriate level of support is vital to the success of CI groups since multiple stakeholders must buy into the groups’ recommendations to make the process valuable. Senior support is important to establishing legitimacy and importance, while sales rep support and trust is linked to gathering critical field-level data. One CI group established a competitive network to circulate competitive intelligence through the organization, collect competitive information from internal sources, and raise credibility and awareness of their goals and role.

  • Empower competitive intelligence groups to take a greater leadership role in developing and implementing competitive strategies - Embedding a culture of competitive intelligence throughout the company encourages company-wide support of CI initiatives. Benchmark companies embed CI capabilities throughout the organization by proactively pushing information out to users, establishing regular communication with groups, conducting informative seminars and by establishing reciprocal relationships with key stakeholders. With multiple departments supporting CI activities, competitive intelligence teams can leverage their influence to develop and implement recommendations to brand strategy.  

    ABOUT BEST PRACTICES, LLC

    Best Practices, LLC conducts work based on the principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class organizations. For more information, call 919-403-0251 or visit http://www.best-in-class.com .

    SOURCE Best Practices, LLC

    Web Site: http://www3.best-in-class.com/rr382.htm



    Cameron Tew at 919-767-9246 or at ctew@best-in-class.com

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