Benchmarking Study - Achieving Competitive Intelligence Power December 18, 2006
Posted by admin in : In The News , trackbackInformation is power. True enough. But synthesizing information into critical competitive insights that drive corporate strategy is the real art of the competitive intelligence function. Indeed, highly effective CI leaders at top pharmas can attest to the profound return on the bottom line that their departments have been able to generate. Moreover, increased pricing transparency in the marketplace means CI insights will play a more powerful role than ever in besting the competition and driving significant value add in the future.
To aid CI leaders in search of excellence, specific CI best practices are revealed in Managing the Competition: Turning Competitive Intelligence into Strategy, a benchmarking study conducted by Best Practices, LLC. (To download a complimentary study excerpt http://www3.best-in-class.com/rr768.htm).
The study presents provocative sharing compiled from surveys and in-depth interviews with 29 top CI executives at such world-class companies as AstraZeneca, IBM, Merck, GlaxoSmithKline, Kodak, Eli Lilly, Abbott Labs, Progress Energy and SAS.
Interviewed class participants offer informative case studies and best practices that speak to such key CI processes as:
- Collection of competitive information
- Synthesizing findings into critical action steps
- Disseminating data to key stakeholders
- Integrating recommendations into strategy
A brief sampling of harvested insights and best practices include:
- Separate commercial and R&D competitive intelligence functions to align CI personnel to appropriate roles.
- Send competitive intelligence gatherers to conventions to collect specific information based on product team needs.
- Incorporate competitive intelligence personnel at sales and marketing staff meetings to provide updates and exchange information.
Comments»
Competitive intelligence methodology can provide great dividends if the initiative receives proper sponsorship. In my experience, the key determinant of a successful CI program is the status of the department head. If the program has executive sponsorship and a strategic direction, the company benefits. But, too many CI people are under the direction of the Marketing department and often tucked away with some brand of market research. They become order takers.
In one of my recent posts, I describe the importance of providing the CI initiatives with strategic support and guidance. (http://primaryintelligence.blogspot.com/2007/03/be-consultant-not-waitress.html)
I would enjoy a comment on the insights. If I have it all backwards, I’d be interested in hearing why.
Thanks for the post. Keep up the good work.
I respectfully disagree with the previous post. Even if a CI function is positioned within the marketing group it can still gain a high degree of visibility. It all depends on the groups ability to reach out across functions and provide value-added CI to non-commercial teams (i.e. R&D, Legal, Mfg., Finance) within the organization. This enables the CI group to have a company-wide network and ultimately gain exposure in front of senior managament where you are able to communicate strategic implications/recommendations based upon competitive analysis–our time to shine!!
Just one CI pratitioner’s thoughts…………
Sorry, but I consider Eric’s post (June 12) to be naive. Intelligence always was and remains a tool to support decision making ultimately right at the top. If the route there is in any way inhibted by interim executives with their own responsibilities and, thus, preferences then those at the topc don’t always get the intelligence product in its original form.
No, I am not a purist; merely a long-term practitioner who has seen all too often decision-makers being mislead or misinformed by the mid-level functionaries who - for their own (often right and proper) reason - put a spin on the intelligence picture.
The best and most consistent success I have had (or been instrumental in fostering) has been when the intelligence support group has direct access to the top via, say, a deputy CEO or somesuch position … not through an individual division head.
None of this diminishes the support capabilities of the intelligence group to help the entire organization; rather it avoids vested interest coming into play as the product climbs the organizational ladder.