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Starting a OrganizationalCompetitive Intelligence Function

Basic Steps to Implement or Improvea Valuable Resource for Strategy

Decision-Makers

Tom Hawes, JTHawes Consulting, LLC October 2009

The Case for Action

Value Needed Basic Assumptions Warning Signs Maturity Model Essential Elements Organizational Diagnostics Improvement Steps

October 2009 Slide 2Copyright 2009, JTHawes Consulting, LLC

Competitive IntelligenceContributions to Key Roles


CEOCEO

GeneralManager(s)

GeneralManager(s)

StrategicMarketingStrategic

MarketingProduct

ManagerProduct

Manager EngineeringEngineering

Competitive Intelligence is Tailored toTypes of Strategy Decision-Making

Competitive IntelligenceContributions to Key Roles


CEO GeneralManager(s)Strategic

MarketingProduct

Manager Engineering

Monitor thecompetitiveenvironment

Establishstrategicpriorities

Makestrategydecisions

Motivate theorganization

Evaluatestrategies

Understandthe marketdirection

Characterizecompetitorstrategies

Define theproduct lines

Create thestrategies

Justifyinvestments

Protect thecurrentbusiness

Mobilize theorganization

Track thecompetitors

Prepare forthe Future

DeliverResults nowand in thefuture

Understandthe marketneed

Characterizecompetitors

Define theproduct

Develop theproduct

Promote theproduct

Understandtechnologystrategies

Maparchitecturaldecisions

Benchmarkprocesses

Track people Judge

capabilities

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Competitive IntelligencePrime Directive


In all that we do,

deliver valuable answers and insights

in a timely manner

to strategy leaders

to help them make better decisions

about the competitive environment.

Focused value that makes a difference tostrategy decisions and outcomes

Competitive IntelligenceInformation Flows


Effective flows integrate, reconcile and interpretinformation to serve senior management

Common CompetitiveIntelligence Warning Signs

Buried in the organization or executed inconsistently

Concentrates exclusively on tactical questions or product issues

Focuses on undifferentiated information with little interpretation

Function has little credibility with or access to strategicdecision-makers

Value is unmeasured and often questioned

Competitors regularly do something unexpected

Limited sense of intelligence possibilities


Organization is not effectively mobilized to gatherand use competitive intelligence

Competitive IntelligenceMaturity Indications


Value(measure)

Options(decide)

Intelligence(communicate)

Information(process)

Data(collect)

ROI FOCUSSTRATEGIC IMPACTS

CI AT THE TABLEINTEGRATED IN DECISIONS

INFRASTRUCTURESTANDARD MECHANISMS

SIMPLE SHARINGEARLY MODELS

AD HOCSECONDARY

Each stage illustrates activities and competencies

Competitive IntelligenceMaturity Indications


Value(measure)

Options(decide)

Intelligence(communicate)

Information(process)

Data(collect)

Greater maturity leads to greater value

GET ASSIGNMENT

ESTALISH FOUNDATIONDS

FORMALIZE PROCESS

DELIVER VALUE

FindThe Pain

GetThe Job

TeaseThe Vision

1 2 3

GET ASSIGNMENT

Frame TheFoundation

Setting SomeStandards

IntroduceThe Brand

AccumulateThe Tools

4 5 6 7

ESTALISH FOUNDATIONDS

Back To TheVision

SecureThe Budget

Build ThePresence

ExpandThe Brand

8 9 10 11

FORMALIZE PROCESS

Go For TheValue

RecruitA Staff

Go On TheOffense

EvangelizeThe Mission

12 13 14 15

DELIVER VALUE

Essential Elements forCompetitive Intelligence

Predictable development steps for anorganizational CI function


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FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Identify a small number (1-3)critical business issues

Find the person that values andwill act on credible information

Make sure that an answer ispossible

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Properly identify the function myname

Prioritize internal relationshipbuilding

Emphasize improvements ratherthan miracles

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Use decision-maker terminologyand success measures

Demonstrate collaborative skillsand results

Show evidence of interpretation(not just information)

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Establish CI vision blueprint (anoutline)

Set execution principles (e.g.ethics, prime directive, audience)

Broaden relationship focus (e.g.analysts, peers, functionalgroups)

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Decide on information,presentation and representationintegrity approach

Set work value success criteria

Establish work quality minimums

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Create and publicize a CI logo tosignify acceptable work products

Stratify customers and developtargeted work products for each

Begin formalizing quid pro quorelationships throughoutorganization

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Create tools categories and listacceptable existing solutions

Obtain and use low cost toolsbefore large scale automation

Identify external resources (e.g.,suppliers, analysts, partners)

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Get formal approval for CI visionfrom senior management sponsor

Sketch implications of adoptingvision

Propose practical steps to realizevision over next 12-24 months

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Formally request a budget fromthe senior management sponsor

Make sure that the total ismoderate to low

Use the money for infrastructuresupport that aids in informationdissemination or collection

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Formalize CI presence throughcompany website

Create personalization strategyfor classes of CI customers

Proactively push information foranticipated strategy issues

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Solicit and incorporate functionalorganization CI issues

Publish multiple regular CIpublications

Create internal and external CIalliances

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Create CI project process anddemonstrate executionefficiencies

Ask multiple senior manager forkey intelligence topics

Facilitate CI project prioritizationamong strategy decision-makers

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Identify and train part time CIanalysts in the organization

Create templates, tools andexamples to support staff

Define integration process todiscuss and combine information

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Proactively formulate strategicpriorities for CI

Present regular briefings on broadCI topics to senior management

Expand defensive and offensiveCI activities to combat threats

FindThe Pain

1Get

The Job

2

TeaseThe Vision

3

Frame TheFoundation

4


5

IntroduceThe Brand

6

AccumulateThe Tools

7Back To The

Vision

8Secure

The Budget

9Build ThePresence

10

ExpandThe Brand

11

Go For TheValue

12

RecruitA Staff

13

Go On TheOffense

14Evangelize

The Mission

15



Become the face of competitiveintelligence internally andexternally

Present, teach and encourageothers about CI topics

Sponsor and perpetuate CI skillsand value in organization

Abbreviated Diagnostics Survey


1. PROBLEM RECOGNITIONSenior management specifically requests competitiveinformation to make strategy decisions.

6. INTERPRETATIONDiscussion, analysis, debate occur to derivemeaningful answers/recommendations fromdata.

2. SPONSORSHIPA specific senior manager sponsors the competitiveintelligence function and process.

7. RETURN ON INVESTMENTCI value is measured qualitatively andquantitatively based on the returns receivedversus invested money and effort .

3. FUTURE ORIENTATIONStrategic planning assumes that methodical CI isrequired for long range plans.

8. ACTION BIASThere are expectations and evidence that CIaffects concrete decisions and motivates specificactions.

4. INTERNAL LEVERAGEProcesses are established and effectively executed touse employees for competitive intelligence questions.

9. STRATEGY IMPACTCompetitive intelligence is integral to strategyplanning at all levels of the organization.

5. INTELLIGENCE GATHERINGA rich set models, techniques, relationships, etc., areused to find useful CI information.

10. REPEATABLE PROCESSCI projects are executed consistently using projectmanagement guidelines to deliver superiorresults.

Never Infrequently Usually Alwaysabbreviated survey detailed survey

Competitive IntelligenceDiagnostics Steps


SelectScope

IdentifyRespondents

AdministerSurvey

ReviewAnswers

RankGaps

PrioritizeImprovements

ImplementChanges

MeasureResults

SENIOR MANAGERSSTRATEGISTS

ELECTRONIC/INTERVIEWS

TABULATIONSINITIAL CLUSTERING

FACILITATED DISCUSSION

TOP ISSUESIDENTIFICATION

ACTION PLANSCHAMPIONS

EVALUATION PLANMETRICS

COMPANY, DIVISION, OTHER

Competitive IntelligenceImprovement Steps


BUILD CIFRAMEWORK

SURVEYLEADERS

CLARIFYMODEL

PRIORITIZEIMPROVEMENTS

DEVELOPDIAGNOSTICS

IMPLEMENTACTIONS

Comprehensive, EffectiveCompetitive Intelligence

Fundamentals

Starts with an expectation of value

Designed to serve strategy decision-makers

Methodical development supports recurringbenefits

Improvement possible from any stage

Higher maturity means higher value


Contact Information


Type Address

Website www.jthawes.com

Strategically Thinking Blog http://blog.jthawes.com

Phone Number +1.214.620.9366

FAX +1.972.727.2462

SKYPE tomhawes2

Twitter JTHawes

LinkedIn http://www.linkedin.com/in/tomhawes

Mailing Address 818 Sycamore CreekAllen, TX 75002

Email [email protected]

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