4 Steps to Competitive Intelligence
31 March 2009
Read by 1910 persons
All companies practice business intelligence to some extent, but the data collected is often poorly exploited. Here is a procedure to implement a real "business intelligence" strategy.
How to practice business intelligence?
It is rare for a company not to practice business intelligence (isn't that right, Mr. Jourdain? ...). It is often a matter of isolated actions that are implemented as needed and which, ultimately, very often result in an accumulation of data that is not used later...
Product managers collect technical documentation and competitors' brochures, sales managers record prices charged by other competitors encountered during market negotiations, a quality manager subscribes to an automated monitoring service on standards in a field, etc.
How to improve this approach?
Here is a proposed method already successfully used in an SME. It focuses on collecting needs, collecting, formatting, and disseminating information in the BI cycle. The data analysis part is intentionally not in-depth, as it most often falls under the expertise of the information requester. Indeed, the latter is often best placed, especially in small structures, to carry out their own analysis. However, information processing, i.e., the intelligible formatting of data for quick and efficient use, is included in this approach.
A 4-step method:
The 4 steps of competitive intelligence are:
1. Identifying the "clients" of intelligence
This involves determining the potential users of the intelligence. We proceed by taking an inventory of possible users, then selecting the target users (or key functions). These will be the "clients" of the intelligence, whom we will call the users. The choice will depend on a selection of criteria, to be defined according to the company's situation. For example, by selecting managers of key processes, for an entity presenting a deficit of operational excellence; or by focusing on the sales department facing great difficulties in the face of competition...
2. Diagnosis of existing and new user needs:
• Inventory of existing: who receives what? With what frequency? How is the information used? What are the sources? How is the information received? How is it stored? What problems are encountered? What can be improved? What needs are not met? This inventory can be done through simple face-to-face interviews, using an interview guide.
• Fill out a summary grid: - User: the recipient of the information - Information/periodicity: information actually received and the frequency of reception - Use: purpose of the information, what will be done with the information? What will it be used for? - Existing E, new N: specifies whether it is a need for which solutions already exist (and perhaps imperfect) or a new need to be met. - Source: origin of the information - Dissemination/storage medium: medium for disseminating information and storage method - Problems/expectations: points to improve - Outline of solution: note the first ideas to calibrate the scale of the solution to be implemented.
3. Define priorities
Once the diagnosis is complete, it is necessary to prioritize the points to be addressed. Different approaches are then possible. For example: make a matrix, with on one axis the strategic importance of the information, and on another axis, the level of investment needed for the implementation of the solution.
More than a synthesis tool, a matrix is also an analysis tool. Indeed, it may be necessary to go further in the qualification of the solution and therefore rework this matrix. A multi-loop work works well with this type of tool: it encourages asking questions, exploring the feasibility of certain possible solutions for more precise arbitration.
4. Design the action plan
The last step is the design of the action plan. Once the priorities are defined, it is necessary to organize the action. To do this, it is advisable to design an action plan. This tool generally includes at least the following points:
What: the actions to be taken may be subdivided into micro-actions
Who: the actors
How: the means at their disposal
When: project deadlines
How much: the budget
Posted on January 26, 2009
entreprendre.ma
How to practice business intelligence?
It is rare for a company not to practice business intelligence (isn't that right, Mr. Jourdain? ...). It is often a matter of isolated actions that are implemented as needed and which, ultimately, very often result in an accumulation of data that is not used later...
Product managers collect technical documentation and competitors' brochures, sales managers record prices charged by other competitors encountered during market negotiations, a quality manager subscribes to an automated monitoring service on standards in a field, etc.
How to improve this approach?
Here is a proposed method already successfully used in an SME. It focuses on collecting needs, collecting, formatting, and disseminating information in the BI cycle. The data analysis part is intentionally not in-depth, as it most often falls under the expertise of the information requester. Indeed, the latter is often best placed, especially in small structures, to carry out their own analysis. However, information processing, i.e., the intelligible formatting of data for quick and efficient use, is included in this approach.
A 4-step method:
The 4 steps of competitive intelligence are:
1. Identifying the "clients" of intelligence
This involves determining the potential users of the intelligence. We proceed by taking an inventory of possible users, then selecting the target users (or key functions). These will be the "clients" of the intelligence, whom we will call the users. The choice will depend on a selection of criteria, to be defined according to the company's situation. For example, by selecting managers of key processes, for an entity presenting a deficit of operational excellence; or by focusing on the sales department facing great difficulties in the face of competition...
2. Diagnosis of existing and new user needs:
• Inventory of existing: who receives what? With what frequency? How is the information used? What are the sources? How is the information received? How is it stored? What problems are encountered? What can be improved? What needs are not met? This inventory can be done through simple face-to-face interviews, using an interview guide.
• Fill out a summary grid: - User: the recipient of the information - Information/periodicity: information actually received and the frequency of reception - Use: purpose of the information, what will be done with the information? What will it be used for? - Existing E, new N: specifies whether it is a need for which solutions already exist (and perhaps imperfect) or a new need to be met. - Source: origin of the information - Dissemination/storage medium: medium for disseminating information and storage method - Problems/expectations: points to improve - Outline of solution: note the first ideas to calibrate the scale of the solution to be implemented.
3. Define priorities
Once the diagnosis is complete, it is necessary to prioritize the points to be addressed. Different approaches are then possible. For example: make a matrix, with on one axis the strategic importance of the information, and on another axis, the level of investment needed for the implementation of the solution.
More than a synthesis tool, a matrix is also an analysis tool. Indeed, it may be necessary to go further in the qualification of the solution and therefore rework this matrix. A multi-loop work works well with this type of tool: it encourages asking questions, exploring the feasibility of certain possible solutions for more precise arbitration.
4. Design the action plan
The last step is the design of the action plan. Once the priorities are defined, it is necessary to organize the action. To do this, it is advisable to design an action plan. This tool generally includes at least the following points:
What: the actions to be taken may be subdivided into micro-actions
Who: the actors
How: the means at their disposal
When: project deadlines
How much: the budget
Posted on January 26, 2009
entreprendre.ma
