Today's Economic Uncertainty Increases Necessity of Competitive Intelligence

Story Filed: Tuesday, October 02, 2001 12:34 PM EST

ALEXANDRIA, Va., Oct 2, 2001 -- Competitive intelligence is a critical business practice that now carries expanded economic implications as businesses everywhere ask what they should be doing in these uncertain times.

Competitive intelligence (or "CI") is the deliberate practice of analyzing publicly available information and then applying it to enlightened business decision-making. With so much at stake, and so much information currently available and being newly generated, not utilizing CI effectively now is tantamount to poor management.

"Now, more than ever, CI is a key element of successful business strategy and risk management," said Bill Weber, executive director of the Society of Competitive Intelligence Professionals (SCIP).

CI has broader economic implications, as well. In a September 25 statement, Tom Donahue, President of the U.S. Chamber of Commerce, urged businesses to "come roaring back strong" in the face of local, national and global business climates that have changed dramatically.

The altered psychology of customers (and competitors, regulators, suppliers and others) creates new, uncharted territory. Old assumptions must be challenged and new insights created if strategic business decisions going forward are to succeed. New thinking is what will restore customer confidence, help businesses rebound, and promote economic well being. That new thinking is what CI provides.

Successful companies rely on CI to ensure that top executives in product development, sales, marketing, finance and elsewhere are equipped with what they need to know to make cutting edge decisions. They rely on CI to "interpret" their competitive environments. Who are (and will be) their competitors, and what strategies are they likely to pursue? What is the sense and direction of key customer groups, opinion leaders, suppliers, distributors, regulators and others who affect a company's own strategies and can help or hurt its competitive position?

On a very practical level, CI differentiates one company's products and services from another's, and demonstrates their superiority. It also identifies and targets the most productive relationships with suppliers, major customers, regulators and other key players in the competitive environment.

"In these times, it's important to keep in mind what costs money and what makes money. CI helps a company make money," added Mr. Weber. "Effective CI also cuts duplication of effort, increases efficiency, and improves decision- making, which reduces costs in the long run."

For those harboring the false perception that CI is "corporate espionage" or spying, Weber explained that any such impression reflects bad information and needs to be discarded. "Espionage is to CI what organized crime is to legitimate business. They don't equate," he emphasized. SCIP's clear-cut Code of Ethics sets forth the proper standards to be applied to any CI activities.

For more information about competitive intelligence and the Society of Competitive Intelligence Professionals, visit http://www.scip.org .