COMPETITOR
INTELLIGENCE
- the difference between information and intelligence - techint, humint, osint etc. |
Competition | ||
Competitor Intelligence | witiger.com/ecommerce/competitorintelligence.htm | |
Competitor Intelligence - Asia | witiger.com/ecommerce/competitorintelligence-asia.htm | |
Competition | witiger.com/ecommerce/competition.htm | |
Competition Types | witiger.com/marketing/typesofcompetition.htm | |
Cannibilization | witiger.com/ecommerce/cannibalization.htm |
INTRODUCTION | This unit on
Competitor Intelligence is sometimes taught in the context of the "New
Product Development" process, alluding to the fact that many new products
are developed from looking at competitors successes, and failures.
This unit is also important in the context of developing business objectives, plans and strategies since the ability to craft measurable objectives (to accomplish the corporate goal) depends upon knowing the Competitive Environment. Secondly, part of a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) requires
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RATIONALE | In 2001,
Iona-Marie Gölin and Marjolijne Withvoet were graduate students
at the Göteborg, Graduate Business School. They published a thesis
with the title
Managing the dynamics of e-commerce -The importance of competitive intelligence http://www.handels.gu.se/epc/archive/00002498/ (link not working Oct 2012) Gölin and Withvoet established that "it is clear that the use of competitive intelligence has grown in importance as corporate activity. Furthermore, companies are increasingly facing an environment characterized by speed of development and uncertainty." Gölin and Withvoet said "competitive intelligence has a major importance in bringing the possibility of managing speed of development and uncertainty. If competitive intelligence is continuously gained, within as well as outside the industry it brings security to the e-strategy development through a clearer picture about reality and it may also lead to seeing trends, which increases the possibility of reacting quickly to changes and not being surprised." It is the key point about being able to "react quickly" which is a particularly important point for us to remember studying e-commerce in the global environment. WTGR |
Intel
Terms |
Techint =
Technical Intelligence
That is to say intelligence that is gathered by technical means, such as
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Intel
Terms |
Humint =
Human Intelligence
Meaning a person collects the information for you by direct contact. In a military context it can mean direct contact with
etc. In terms of Competitor Intelligence, it can be the difference between spending a lot of money on technical resources to acquire information and intelligence, or use money to bribe someone, or cause someone to reveal corporate secrets. Sometimes technical access to another company's secrets could put the perpetrator in a risky situation of being discovered - ie. hacking in to their server could get you in to a lot of trouble if you are caught. So instead of doing something that may be illegal, and may cause the perpetrator to be caught, one of the simple ways companies acquire critical information from another company is to simply hire away the key people by offering them a very very large salary increase, or offering them the chance to do something very kewl that they could not do with their former employer. Competitor Intelligence can be acquired by acquiring the competitor's people. Some companies call this
poaching, other companies simply call this "competitive executive recruitment"
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Intel
Terms |
Osint - Open
Source Intelligence
. Information from public media sources such as foreign language newspapers and websites, lists of participants at events, conferences, trade missions, exhibitions and seminars. Membership lists and contacts for industry associations. Increasingly used by law enforcement in such simple ways as checking social media for information about a person of interest - such as their Facebook page or tweets from their contacts OSINT can also be used by recruiters scrolling through LinkedIn profiles or YouTube channels |
Intel
Terms |
Geoint =
Geospatial Intelligence
(some say a sub-set of Techint) That is to say intelligence that is gathered by means, such as aerial photographs from a reconnaissance drone or high flying spy plane; also detailed topographic maps which allow assessments of accessibility
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Intel
Terms |
Masint -
Measurement and Signature Intelligence
Information such as "Airborne Electro-optical Missile Tracking" or use of infrared technology such as a Thermal Imaging Sensor System. Sigint - Signals Intelligence
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Group
A Part A
Group A Part B |
Group B | Group C | Group D |
..
Competitor
Intelligence Strategy
Historical
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Machiavelli (1469-1527)
-- Italian political and military theorist
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Competitor
Intelligence Chapter 4
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Larry Chase, author of Essential
Business Tactics for the Net jokingly titles this chapter http://007
subtitle is "Spying on Your Competitors and Yourself" beginning on p. 92, and
List of things you should look for on a competitor's web site: sources of competitor's data
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Competitor
Intelligence Info?
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The difference between
information and intelligence
First - keep in mind not all information is useful. Sometimes the collection of massive amounts of data has no consequence unless that collection can be done in a way which allows the data to be synthesized, indexed and retrieved - then it becomes information Secondly - the prime difference
between information and intelligence is that
A former CIA officer explains that, for them, intelligence was a subcategory of information and for them this meant information that was obtained in a clandestine way, largely through covert methods. These days (2006) information
does not necessarily have to be collected in a covert way to be considered
intelligence, basically, it is information that is collected, then manipulated,
ranked, verified such that it can be used to make a strategic decision
of great importance.
WTGR http://dialspace.dial.pipex.com/aware/competitor-analysis.shtml#Convert
(link not working Oct 2012)
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Competitor
Intelligence Info?
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The difference between
information and intelligence
Many North American military units use the term "actionable intelligence", meaning "really good info they can use" Here is an example Country "Z" has 4 nuclear
reactors. These reactors are in the process of being converted to make
enriched uranium. Enriched uranium can be used for making nuclear weapons
Dr. XXXXX YYYYYYYY of the
Z Agency has succeeded in making "X" amount of enriched uranium on January
4th 2006 and this is being carried in a truck driving from A to B at 4:30
PM on Jan 5th. The truck is black and in the center of a convey of 2 other
vehicles northbound on Hwy 123
WTGR |
Competitor
Intelligence Info?
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The difference between
information and intelligence
Most people know that all cell phones sold since 2004 have GPS capability which may or may not be activated depending on the jurisdiction. Here is an example Rogers has a joint venture
with Nokia to develop a chip that can be used for e-payment systems.
Rogers is two weeks away
from signing a 2 year agreement with Royal Bank to allow all Rogers Cell
phones to be used as e-payment proximity devices, based on RFID
technology with all RBC interac stations in the greater Toronto
region beginning in July 2006.
WTGR |
Competitor
Intelligence Techint Strategies |
Techint Strategies
Sometimes technical access
to another company's secrets could put the perpetrator in a risky situation
of being discovered
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Competitor
Intelligence Humint ! competitive
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In early Feb 2007, UTM student
George N. in MGD415 emailed to provide some comments, and an example of
"competitive executive recruitment"
George said "I enjoyed the lecture about competitive intelligence that we had last Tuesday especially when you spoke about human intelligence. I find that this topic is extremely interesting as very often we forget that competitive intelligence is not limited to having the best hardware or software. Employees play an important role in intelligence as they even the best hardware and software cannot compete with what the human mind knows. The F1 racing industry is an industry that prizes human intelligence highly. Since the number of people working within the industry is fairly limited, the people in there are highly valued. One such person that I've read about is Adrian Newey. He is considered to be one of the top designers in the Formula One world. I've found an article that shows how human intelligence is valued and how different teams within the company tries to outbid each other to get the best human intelligence available." George provided the URL to
the story at
Meaning, one of the strategies and tactics used by enterprises to hire away select talent is to create a situation that would be attractive by giving the "target" to rejoin people he/she had previously worked with. This is playing to the well understood aspect of employment - that being one of the main reasons people do the job they do is because of the workplace environment and who they get to work with. |
Competitor
Intelligence = equals Spying? Air Canada
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Competitor Intelligence
= Corporate Espionage = Spying ?
The companies agreed Thursday to find an expert to search for relevant documents at WestJet in connection with Air Canada's lawsuit alleging corporate spying. Air Canada claims that "espionage
on a massive scale" took place at the home of WestJet vice president Mark
Hill. It wants to search WestJet's records for evidence that WestJet used
information from an Air Canada employee-only website to plan its flight
schedule and expansion."
BY ALLAN SWIFT
Swift writes "Discount airline Jetsgo has been caught up in the legal battles between Air Canada and WestJet Airlines over alleged corporate spying. Jetsgo president Michel Leblanc said today it was "highly disturbing" to discover that Air Canada private eyes found shredded documents related to Jetsgo's operations in a waste bin outside the home of a former WestJet executive who allegedly spied on Air Canada. Swift explains this comes from an earlier story in 2004 about how "Air Canada sued WestJet and two of its employees earlier this year, claiming they gained access to an Air Canada employee website last year and this year to check seat availability....In court documents, WestJet vice president Mark Hill has admitted that he did access the Air Canada employee-only website using the password and PIN of a former Air Canada employee now working for WestJet. Air Canada claims WestJet logged onto the website thousands of times between May 15, 2003 and March 19, 2004. The site provides all of Air Canada's ticket sale information. A WestJet executive had used the Password and Userid of an Air Canada employee to look at confidential information on the Air Canada intranet. |
Competitor
Intelligence = equals Spying? A.K.A.
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Competitor Intelligence
= Corporate Espionage = Spying ?
"According to a research, conducted by Pricewaterhouse Coopers, corporate espionage costs the world's 1000 largest companies more than $45 bn every year. The losses doubled between 1990 and 2000. It is important to notice that the corporate espionage is increasing rapidly, as more information is put onto corporate networks, which consequently means it is increasingly in the reach of hackers." in the article http://resources.zdnet.co.uk/articles/0,1000001991,39291900,00.htm
Simeon adds
WTGR explains
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Competitor
Intelligence = equals Spying? Air Canada
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Newspaper stories explain that WestJet was able to access the Air Canada intranet by having a former Air Canada employee come to work for WestJet - and, they were able to logon with their old Userid and Password. One could say that Air Canada was just as much to blame for this problem developing because they should have deleted the ability for former employees to still use old passwords on the system. While it seemed wrong for WestJet to take advantage of this opportunity, it was bad for Air Canada to have ignored an obvious procedure when dealing with the process of de-hiring. |
Competitor
Intelligence = equals Spying? Air Canada
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I (WTGR) explained that the reason the WestJet situation took place is directly related to the intense competitive environment of the airline industry. The intensity of competition causes all airlines to use competitor intelligence as strategically as possibly in order to obtain small margins of advantage in a tough economic environment hit by the aftershocks of tourism travel dropping post 9/11 and the high gas prices beginning in 2005. I also told Kaur that while it was bad for WestJet to have used some particular methods to access Air Canada passenger traffic data, on the other hand, Air Canada should have been more diligent in following SOPs (standard operating procedures) to 1. change the IT database access that former employees may have after leaving the company. Unlike the movies, stealing corporate information is not common - however it is perfectly reasonable to "steal people" ;.... but it is not called that, it is called Competitive Executive Recruitment. Therefore another SOP that companies employ is to 2. have non-compete clauses signed by executives so that if they leave the company, for any reason, they agree not to take up employment with any other company in the industry sector for a particular period of time. In the case of the WestJet - Air Canada situation, Air Canada was vulnerable because they did not follow two basic SOPs for business intelligence. WTGR |
Competitive Executive Recruitment | As reported
in the Wall Street Journal 2009 Aug
Beijing Automotive Industry Holding Co. has hired away the product-development chief (Gu Lei) from rival Chery Automobile Co.
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Competitor
Intelligence = equals Spying? McLaren |
McLaren Fined $100M
in Spying Scandal
was the title of an Associated Press story in September 2007
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Using
Competitor Intelligence |
A.
Weiss explains there are four stages in monitoring competitors
- the four "C"s:
1. Collecting the information 2. Converting information
into intelligence
3. Communicating the intelligence.
4. Countering any adverse competitor actions. |
Using
Competitor Intelligence ineffectively |
Intelligence
about the competition is of no consequence unless it is used
A. Weiss explains
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Defending
against Competitor Intelligence ...be discreet
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I'm guessing,
as I update this unit in early 2006, that a lot of companies are spending
time and money trying to acquire information about their competition, without
thinking of how they can protect their own information from being acquired
- and, sometimes this is difficult to do because in a large and medium
sized company, there are too many people who have some partial responsibility
for letting information out - meaning allowing information about the company
to be known by people other than employees.
WTGR
Larry Watson, program manager for the FBI's Awareness of National Security Issues and Response unit says "Publishing employee phone lists facilitates "social engineering" -- essentially sweet-talking secrets out of employees". |
Social Engineering
witiger.com/ecommerce/SocialEngineering.htm is a slang expression to describe things you do to another person to trick them into believing something, usually by pretending to be part of their company, or making a lie about your true identity in order for them to give you a password or some secret info. Using "social engineering" tricks can be a valuable part of accessing competitive information but the specific techniques and tactics may be immoral even if they are not illegal so some people may find it uncomfortable to be involved in this method of collecting information. |
the
"Business" of
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Some sites of
companies that provide Business Intelligence and Competitor Analysis services
Mnemotrix Systems, Inc. http://www.mnemotrix.com/bi.html describe themselves as "provides online tools, training, and support for Business Intelligence Officers and Security Professionals.." .
In the past few years (2011-2013) there has been a great increase in the number of companies using Competitor Intelligence and although there is no peer-reviewed study that explains why the trend is occuring or what exact tools they use, it has been suggested that some of the reasons for this trend are
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Competitor
Intelligence Gathering too much info is not good |
Professor
Richardson's comments on the tendancy for people to gather information
indiscriminately
"The possession of information is often considered a critical part of corporate competitiveness. Information itself is not so valuable - what is valuable is the tools to aggregate the information, manipulate it, synthesize it so you can draw conclusions which can assist in decisions"www.witiger.com/quotes.htm
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Canadian
Government sources of information on
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There are a
number of federal, and some provincial government ministries, agencies
and departments that provide information, directly and indirectly that
can be used by companies seeking competitor intelligence
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Competitor
Intelligence Sources in-class
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Sources and resources for
intelligence
List as many possible sources and resources for intelligence (humint and teckint) on the competitors of a company
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As Frederick the Great said:
"It is pardonable to be defeated, but never to be surprised."
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