Ahead of the Game: Competitive Intelligence Strategies for Sustained Advantage Author: Soo Darcy Pages: 103 The report is aimed at new entrants to the discipline and those who would like to expand their existing activities, and will be useful for both the management group responsible for implementing CI and the professional or team responsible for conducting and maintaining the CI function itself. Pre-publication Offer: $200 off the cost of the cover price - offer ends Friday, 14 December 2012(sorry no extensions) Order Form http://www.arkgroupaustralia.com.au/documents/CompIntellOF.pdf Summary http://www.arkgroupaustralia.com.au/documents/CompetiveIntelligenceStrategiesSummary.pdf Ahead of the Game: Competitive Intelligence Strategies for Sustained Advantage Chapter 1: Introduction to competitive intelligence Chapter 2: The competitive landscape Chapter 3: Competitive intelligence – a practical guide from planning to review Chapter 4: Building the business case for competitive intelligence Chapter 5: Integrating the competitive intelligence function Chapter 6: The role of technology Chapter 7: Social media Chapter 8: Ethical and legal issues Case study 1: Greggs – Competitive intelligence in bakery retail Case study 2: GVA – Using competitive intelligence to create a service-led culture that reinforces the brand Case study 3: Acritas – Insight to sharpen your competitive edge Case study 4: Wates Group – Managing competitive intelligence in the construction industry Case study 5: Atos – The challenges of dealing with Big Data Relevant Forum Two-Day Workshop: $1295 plus gst to attend both days Applying and Implementing Business Analytics 4-5 February, 2013 Citigate Central, Sydney http://www.arkgroupaustralia.com.au/Events-E047BusAnalytics.htm About the workshop: This workshop gives the attendee a vendor-independent insight into the broad and much hyped field of analytics, what it should do for the business, how it should be managed throughout the organisation and how it should be implemented in conjunction with data warehousing and business intelligence.

1. Ahead of the Game: Competitive
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SOO DARCY
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3. Ahead of the Game: Competitive
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SOO DARCY
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5. Contents
Executive summary ............................................................................................................VII
About the author................................................................................................................XI
Acknowledgements ..........................................................................................................XIII
Foreword..........................................................................................................................XV
Part 1: Making Competitive Intelligence Work for Your Organisation...................................1
Chapter 1: Introduction to competitive intelligence ............................................................. 3
What is competitive intelligence?............................................................................................ 3
An introduction to some key concepts..................................................................................... 4
Common concerns and misconceptions.................................................................................. 6
Exploring the benefits of competitive intelligence… .................................................................. 7
Chapter 2: The competitive landscape .............................................................................. 11
The macro environment....................................................................................................... 11
The micro environment ........................................................................................................ 15
The business environment .................................................................................................... 20
Chapter 3: Competitive intelligence – a practical guide from planning to review............... 21
The competitive intelligence cycle ......................................................................................... 21
Planning............................................................................................................................. 21
Gathering information ......................................................................................................... 23
Analysis .............................................................................................................................. 29
Dissemination and action .................................................................................................... 33
Review ............................................................................................................................... 34
Chapter 4: Building the business case for competitive intelligence .................................... 37
Assessing the value of competitive intelligence ...................................................................... 37
Resources ........................................................................................................................... 38
Encouraging buy-in ............................................................................................................. 41
Chapter 5: Integrating the competitive intelligence function ............................................. 45
Auditing your existing resources ........................................................................................... 45
III

6. Contents
What else do we need? ....................................................................................................... 47
Who is responsible for the competitive intelligence function? .................................................. 48
Chapter 6: The role of technology .................................................................................... 51
Introduction ........................................................................................................................ 51
Choosing a solution for your organisation ............................................................................ 52
Chapter 7: Social media .................................................................................................. 55
Leveraging value from social media ..................................................................................... 55
From the inside out: information leaks .................................................................................. 57
Chapter 8: Ethical and legal issues ................................................................................... 61
Introduction ........................................................................................................................ 61
Legal compliance................................................................................................................ 62
Ethical compliance .............................................................................................................. 66
Drawing up guidelines ........................................................................................................ 68
Protecting your organisation against counter-intelligence activity ............................................. 69
Summary ............................................................................................................................ 70
Part 2: Case Studies ......................................................................................................... 73
Case study 1: Greggs – Competitive intelligence in bakery retail ...................................... 75
Identifying customer needs through the competitive intelligence programme ............................ 75
Monitoring the competitive environment in the changing high street........................................ 76
Innovation at Greggs .......................................................................................................... 77
Product development........................................................................................................... 78
Tracking success ................................................................................................................. 79
Case study 2: GVA – Using competitive intelligence to create a service-led culture that
reinforces the brand ......................................................................................................... 81
Case study 3: Acritas – Insight to sharpen your competitive edge...................................... 85
Achieving synergy ............................................................................................................... 86
Commissioning research – best practice ............................................................................... 87
Making the case for research ............................................................................................... 88
Case study ......................................................................................................................... 89
Case study 4: Wates Group – Managing competitive intelligence in the
construction industry ........................................................................................................ 93
Transforming the CI function from a dispersed to a centralised function .................................. 93
Using our intelligence ......................................................................................................... 95
Storing, disseminating, and using intelligence........................................................................ 96
The future .......................................................................................................................... 97
IV

7. Ahead of the Game: Competitive Intelligence Strategies for Sustained Advantage
Case study 5: Atos – The challenges of dealing with Big Data........................................... 99
What is Big Data?............................................................................................................... 99
How can Big Data help with competitive intelligence? ......................................................... 100
The back story to Big Data ................................................................................................ 101
The challenges of handling Big Data .................................................................................. 101
How Atos helps its clients .................................................................................................. 103
What technical solutions are available? .............................................................................. 104
The future ........................................................................................................................ 104
Further Reading ............................................................................................................. 107
V

9. Executive summary
TO THE seasoned professional, competitive Chapter 1 is a broad introduction to CI,
intelligence (CI) has long been an providing a working definition of ‘competitive
established discipline that delivers bottom intelligence’ and a consideration of what
line results. Several degree programmes this definition means to the CI professional
teach CI analysis techniques and the and his or her business. Next is a discussion
value of understanding the competitive of the key benefits of CI including the
landscape is well known to business identification of new opportunities and
graduates. Nevertheless, despite the growing potential threats to the business, customer
acceptance of CI as an ethical and valuable relationships, business development, pitching
activity, it seems to be an entrenched feature and tenders, marketing, and R&D. We
in only the largest organisations and is, all then move on to a consideration of some
too often, the first budget to be cut when key concepts that will recur throughout
economies have to be made. Yet gaining the book: what is the difference between
and maintaining a competitive advantage is information and intelligence, and how can
essential if we are to spot new opportunities intelligence be used to maximum effect?
or avoid being blindsided by an unexpected Finally for this chapter, we dispel some
entrant to our competitive set. This is all the common misconceptions about CI and
more important when times are hard and some potential barriers to adoption. These
businesses are forced to innovate or branch include arguing against the persistent
out into new markets in order to survive. perception that CI is unethical or illegal,
In this report we look at the process of as well as touching on points of resistance
CI from start to finish: what benefits will it such as a lack of resource to carry out
bring and how can it be incorporated into CI activities and a belief that the business
the business structure; how do we actually already knows everything it needs to know
carry out CI and who is the best person about its competitors.
for the job; what are the implications of The competitive landscape incorporates
technology and social media to CI; and both broad influences that are beyond
how do we ensure that our activities are the control of the company – the macro
legal and ethical? The report is aimed at environment – and factors that are closer
new entrants to the discipline and those to home and have a two-way interaction
who would like to expand their existing with the business, such as its customers,
activities, and will be useful for both competitors, and suppliers. Chapter
the management group responsible for 2 considers these issues, beginning
implementing CI and the professional with the PESTEL model for analysis of
or team responsible for conducting and the macro environment: what are the
maintaining the CI function itself. political, economic, social, technological,
VII

10. Executive summary
environmental, and legal forces that data collected during the gathering stage,
surround and act upon the organisation? to ensure that appropriate information is
We also include ethical factors within this being gathered and in volumes that can be
breakdown of the external competitive reasonably handled and analysed. As well
environment (the STEEPLE model). Moving as this interim review stage, the chapter also
on to the micro environment, we look at discusses the need to review the CI cycle
Porter’s classic ‘five forces’ model: the itself after dissemination, to ensure that KIQs
potential for new competition in the market; have been met and the CI has delivered on
the threat of substitute products and/or its objectives before the cycle begins again.
services; the buying power of customers; In Chapter 4 we look at the importance
the bargaining power of suppliers; and the of building a business case for CI to ensure
strength of rivalry that exists within these that the organisation has bought into the
forces. Finally, we look at the business concept at every level – from the board or
environment in terms of your immediate most senior managers to those at the front
competitor set. It should be remembered line of customer engagement. CI has the
that your organisation’s competitors may power to create bottom line gains but its
be gathering intelligence on the strength of effects, if conducted and used properly,
your recruitment pool, your new product, or should be felt at numerous points throughout
the likelihood of your best team members to the business and thus much of the benefit
defect, so this section offers an opportunity is intangible or unquantifiable. When
to reflect on how the business projects its budgets are cut, many CI professionals and
own image into the competitive landscape. researchers comment that their skills are the
After considering the competitive first to be dismissed yet the truth is that in
landscape, we turn in Chapter 3 to the difficult economic conditions, ensuring the
nature and process of CI itself. First we look business maintains a competitive edge is
at the CI cycle from planning through to more important than ever. In this chapter we
review, bearing in mind that CI can include look at ways to build the business case for
both ongoing activity and discrete projects CI and encourage organisation-wide buy-in
for a particular purpose, such as a marketing to the value of intelligence.
campaign. The planning stage looks at key Chapter 5 gives practical tips for
intelligence topics and questions (KITs and integrating the CI function into your
KIQs respectively); the section on gathering organisation. Beginning with a discussion
intelligence highlights some of the richest of the ideal structure, in which there is a
resources available to the CI professional; dedicated CI professional or team sitting
the analysis stage includes details on turning beside the organisation’s decision makers,
your data into actionable intelligence on we move on to consider how some of these
which to base strategic decisions; and the ideals can be incorporated into a more
dissemination section discusses ways to flexible model. In particular, Chapter 5
distribute and present intelligence internally outlines the need to audit your organisation’s
to ensure it is used and exploited by the right existing knowledge, information distribution
people, to maximum effect. systems, and employee skills in order to
This chapter also covers the ‘review’ identify where an intelligence function could
stage which, in fact, occurs more than once reasonably be incorporated. In addition, this
in the cycle. We look at the need to review chapter describes the attributes and skills
VIII

11. Ahead of the Game: Competitive Intelligence Strategies for Sustained Advantage
an organisation should look for in its CI as its starting point an assumption that the
professional or team. CI professional does not intend to carry
The role of technology in CI is in a out illegal or unethical activities in the line
constant state of flux, making it difficult to of duty, and it is hoped that accusations
choose the right technology for your needs. of ‘economic espionage’ against the CI
Moreover, once you have committed to community are now outdated. However, it
putting in place a CI function, a review is still essential to understand the legal and
of existing KM and CRM systems will be ethical landscape within which CI activity
important. CI requires not only solutions for will be carried out so that the intelligence
the gathering and analysis of information professional can not only be sure that their
but also systems to ensure the resulting activities are acceptable but also that the
intelligence is stored in a manner that makes ethical values of the profession are upheld
further analysis, retrieval, and distribution an and promoted. There is, of course, a flip
efficient process that encourages intelligence side to this argument: the point of CI is to
sharing. There are numerous dedicated create and maintain a competitive edge
CI software packages on the market and for the organisation, so having a clear
Chapter 6 is not intended to provide reviews understanding of where the line lies between
of the merits of these packages. However, ethical and unethical activity means that
it does consider the difficulties associated the CI professional can use every technique
with managing huge volumes of data and available provided it does not overstep that
outlines some of the options available, line. Being over-cautious about what is
including proprietary CI software, existing permitted could mean that the organisation
KM and CRM systems, and Software as a loses competitive advantage if its rivals are
Service (SaaS) solutions. gainfully employing more sophisticated CI
In Chapter 7 we look at the important techniques that are, in fact, perfectly legal
and growing role played by social media and ethical. Although this chapter is not
in CI. This chapter takes both an inside- intended to provide an exhaustive account
out and outside-in approach; in other of the legal and ethical rules that might
words, what can your organisation learn be applicable in every circumstance, it
about its competitors from analysis of their can be used as a basis to build your own
social media activity, and what can your understanding of the rules within which your
competitors learn about you from your own CI activity should be conducted.
online presence? The latter section covers Part II consists of case studies from
topics such as organised social media professionals and experts in the CI field
releases and ad hoc activity that might and covers a range of industries. We hear
be performed by individual staff members how Greggs, the UK’s leading bakery
or teams, highlighting the potential for retailer, keeps up with the challenges of a
inadvertent information leaks if this data changing High Street environment whilst
is analysed as a whole. We therefore ensuring that its customers are delighted
also address the importance of putting in with their experience. GVA, a leading UK
place social media policies to regulate the property management company, tells us
information flow from your organisation. how CI is used to support a service-led
Chapter 8 is dedicated to the legal and culture that reinforces the brand. Next we
ethical implications of CI. The book takes take a look at the benefits that market
IX

12. Executive summary
research – both bespoke projects and off-
the-shelf or syndicated programmes – can
bring to CI activity in a case study from
Acritas, a specialist professional services
research consultancy with clients spanning
the globe. Wates Group, one of the UK’s
largest building and construction companies,
describes how the competitive landscape
is monitored and highlights the value that
a centralised CI function can bring to a
busy organisation with multiple information
streams. Atos, a global IT services company
and worldwide IT partner of the 2012
Olympic and Paralympic Games, talks us
through the challenges faced by businesses
when dealing with ‘Big Data’ – the huge
volumes of information that need to be
gathered and analysed by CI professionals
on a daily basis.
X

13. About the author
SOO DARCY has more than 12 years’ experience as a market researcher and writer, and has
worked for clients ranging from one-man start-ups to blue chip corporates. Her expertise includes
new market assessment, product concept testing, customer and employee satisfaction, and
competitor analysis. Soo is Managing Director of Papyrus Research, a market research consultancy
she established in 2010 and now runs with her husband, Kieran. In 2008, Soo authored Competitive
Intelligence for Law Firms (Ark). She holds a first degree in English literature and a Masters in Modern
and Contemporary Studies, along with a Graduate Diploma in Law; in her spare time Soo is now
studying for a PhD in contemporary literature. She lives in north east England with her husband and
three children.
Soo can be contacted at soo.darcy@papyrusresearch.com.
XI

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