An intelligent business plan

COMPETITIVE, low-cost intelligence is a systematic and ethical program for gathering and analysing information about a competitor’s activities and general business trends to further your own company’s goals. It does not involve covert and shadowy behaviour, nor does it involve fast cars and walkie-talkies.

The process is quite logical and scientific. Basically, data is collected and compiled into information that is then analysed, providing intelligence that can be applied to assist decision-making, support implementation of actions and hopefully, culminates in successful results. In this respect, SMEs can be at a disadvantage to larger competitors with more resources and cash.

However, with great size can often come great inability to react quickly to changes in the business environment and customer demands. SMEs are often in a better position to react quickly to change, have fewer internal barriers and are usually owned by someone who can make a timely decision, rather than go through layers of process and/or managers. It is a significant competitive advantage, but it can be one that is rarely used because without relevant, timely and accurate understanding of the business environment and customer needs, SMEs may be unaware of an opportunity or gap they can take advantage of.

By encouraging staff to value competitive intelligence gathering and ensuring there are internal mechanisms to capture and share the information, SMEs can be competitive against competitors. SMEs may consider they are too busy working in the business to undertake competitive intelligence gathering, or even believe that it is costly to obtain.

However, this may have more to do with the focus in the media on competitive intelligence gathering undertaken by large companies and perhaps a misunderstanding of what exactly is meant by competitive intelli-gence and understanding how simple and low cost it can be to do the research. The type of intelligence required will be unique to the business undertaking the research.

However, typical topics include competitor activity (existing, potential and new), advances in technology in the industry, changes in legislation, shifts in consumer needs/ perceptions, potential for new markets and changes in existing markets. Before going into a list of sources, it should be pointed out that intelligence should be gathered in a legal and ethical way. This should not be too difficult as over 80 per cent of all information is public knowledge.

There are two categories of sources, internal and external to your organisation. Depending on the type of organisation, internal sources include staff, customers, sales data, internal documents/databases, direct observation and information from suppliers. External sources include trade journals/magazines, online databases, industry experts, trade organisations, trade shows and conventions, general business media, government records, media monitoring and direct contact with competitors.

Make staff aware that intelligence gathering is valued and time will be allocated to such activities. Break up the tasks between staff recognising things they already do, such as reading trade journals or attending trade shows. Pick a topic that is vital to the organisation and provide time for staff to undertake research at the library, or to undertake a mystery shop at competitors’ stores. Sign up for competitors’ loyalty programs and clubs. Subscribe to free e-newsletters from competitors and trade bodies on the internet. Sit down with staff and have a look at the information already floating around internally. Discuss how best to capture that information, which bits are the most useful, how to store it and disseminate it.

Regardless of size, many companies fail to ensure that, even if they have effectively gathered intelligence, the knowledge gets distributed within the organisation. So before you engage in a process of gathering the intelligence, give some thought on the format and processes that will work best to disseminate the information effectively to your colleagues. “Effectively” will mean different methods for different organisations, depending on the number of staff, their location/shifts and culture of the organisation. For some this means an informal presentation, in person, over a coffee.

For others, it means by email or a formal report summary. Another idea is to set up competitor files where everyone can place infor-mation using a standard document format and everyone can refer to in their own time. Ideally the system should be computerised in a simple database and contacts program.

Despite the best intention of intelligence gathering, enterprises can still not make the most of the knowledge they have. Common errors include, not acting in a timely fashion, not checking facts to ensure they are correct, or complete, or updated, and misinterpreting the information.

Sifting of the information gathered, correctly analysing it and checking its validity should be a step in the information gathering process before it is circulated to staff. The best thing about intelligence gathering is that, apart from time to gather and write down the information, it has no cost or a low cost.

Most of the intelligence can be gathered as staff go about their daily business. Using the local library is free of charge and gives unprecedented access to newspapers, journals, online databases, books and corporate videos/reports.

Contact:

Julia Zivanovic

AMSRS, WA.

Email: amsrs@amsrs.com.au

Phone: 1300 364 832