Fundamentals of Competitive
Intelligence (CI)
This slide presentation will outline
the “nuts and bolts” behind the
competitive intelligence process.
Matt H. Evans, CPA, CMA, CFM
1
7/24/2016
Why Competitive Intelligence?
The only company’s that don’t need competitive
intelligence are those with no competition. In a
world of hyper-competition (lower barriers to entry,
global marketplace, customer focus, etc.), few
companies can abstain from some form of
competitive intelligence. Even if you don’t have
competition, competitive intelligence will generate
numerous benefits: early warning systems, more
accurate forecasting, business development, market
research, due diligence, etc.
Matt H. Evans, CPA, CMA, CFM
2
7/24/2016
The Essence of CI
Competitive Intelligence is about Strategic
Business Analysis.
 Strategic Business Analysis answers all
types of questions confronted by business.
 In order to answer strategic business
questions, we need “intelligence” and not
information.

Matt H. Evans, CPA, CMA, CFM
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7/24/2016
What is Intelligence?
Unlike data or information, intelligence
gives us insights into what we think will
happen based on past behavior.
 Competitive Intelligence is forward
thinking and the most recent information
has the most relevancy to giving us
insights into the future.
 In order to create intelligence, we must go
through a conversion process.

Matt H. Evans, CPA, CMA, CFM
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7/24/2016
The CI Conversion Process
By synthesizing and analyzing data, we
can transform data into information.
 Next we apply high levels of experience
and insights to information, transforming it
into intelligence.
 And if we can “act” on the intelligence,
then it is value added by helping us in
strategic decision making.

Matt H. Evans, CPA, CMA, CFM
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7/24/2016
CI Conversion Diagram
Matt H. Evans, CPA, CMA, CFM
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7/24/2016
Major Goal of CI
The main objective behind competitive
intelligence is to create and / or maintain a
competitive advantage against the
competition.
 By using “intelligence” we can anticipate
what will happen in the future and this
helps us create / maintain a competitive
advantage and ultimately allows us to
become a market leader in our industry.

Matt H. Evans, CPA, CMA, CFM
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7/24/2016
Numerous Benefits of CI
Although competitive advantage is the main
benefit of CI, there are numerous ways of
leveraging CI:





Benchmarking for Best Practices
Product Pricing
Merger & Acquisition Research
Validate or Invalidate Rumors
Speculating in Uncertain Markets
Matt H. Evans, CPA, CMA, CFM
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7/24/2016
Define the CI Universe
CI Professionals often need to define a CI
Universe so they can focus on the most
important things first.
 A business environment map will outline
forces that impact a company, such as
social change, customers, new
competition, regulatory change, etc.
 We can layer these forces to distinguish
levels of importance for each force.

Matt H. Evans, CPA, CMA, CFM
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7/24/2016
Business Environment Map
EXTERNAL
Technology
FORCES
Demographics
D IR E C T
FORCES
Partners,
Suppliers,
Distributors
Political
Your Company
Customers
Economy
Current
Competitors
New Competitors
Regulatory Changes
Matt H. Evans, CPA, CMA, CFM
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7/24/2016
CI Project Management
For the most part, competitive intelligence is
executed as a project. And most projects are very
fast and tight since management needs answers
quickly.
Example: On September 12, 2001, almost every
American Corporation with operations in
Pakistan went to their CI Departments and asked:
Do we need to pull out of Pakistan and what
financial impact will this have on our company?
And I need an answer by the end of the week.
Matt H. Evans, CPA, CMA, CFM
11
7/24/2016
The CI Analytical Process
Competitive Intelligence Projects follow the
scientific approach to problem solving:
1. Define the Question
2. Gather Data
3. Organize the Data
4. Synthesize and Filter the Data
5. Analyze appropriate data
Matt H. Evans, CPA, CMA, CFM
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7/24/2016
The CI Analytical Process
(continued)
6. Prepare your findings
7. Draw meaningful insights
8. Prepare recommendations
9. Draft CI Report
10. Review and Approve Report
11. Issue Report
12. Follow-up and correct process.
Matt H. Evans, CPA, CMA, CFM
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7/24/2016
The Most Important Step
Defining the Question is critically important since
all remaining steps feed from this initial step.
Example: CEO requests information on the
consumption of wine in the United States. CI
process must narrow the question down. CEO now
says he really is only interested in male
consumption of red wine in Northern California. By
defining the exact question, we create a realistic
scope for our CI Project. We can also flip the
process backwards and ask the CEO: How do you
plan on using this CI information?
Matt H. Evans, CPA, CMA, CFM
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7/24/2016
CI Life Cycle
CI Projects typically have very short cycles:
Define Question (time varies widely)
Gather Data (two weeks)
Organize Data (two weeks)
Analyze Appropriate Data (two weeks)
Prepare Findings (1 week)
Draft Report (1 week)
Review / Approve ( 1 to 2 weeks)
Matt H. Evans, CPA, CMA, CFM
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7/24/2016
CI Filtering
CI Projects almost always go through some type
of filtering process:
 Some projects must be turned down to focus
on the most strategic projects.
 CI resources may not be able to answer the
question.
 Can the question be answered more quickly by
another department?
 Does the question fit with the skills and
capabilities of the CI Department?
Matt H. Evans, CPA, CMA, CFM
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7/24/2016
Sources for CI
Most sources (70%-80%) for CI are secondary
(not first hand), such as newspapers, journals,
press releases, ads, web sites, etc. Primary sources
(first hand) include interviews, surveys, and other
direct research techniques.
CI should try to enlist in-house experts. Larger
companies should create and maintain a Yellow
Pages of in-house experts.
And yes, CI Professionals live by their rolodexes
– the contacts and sources for completing their CI
Projects.
Matt H. Evans, CPA, CMA, CFM
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7/24/2016
CI Characteristics
Competitive Intelligence should:
 Link behavior and patterns so that we can
gain insight into the future.
 Serve as an internal advisory service within
the company.
 Not be afraid of telling the truth.
 Be accepted by management as a reality
check for making strategic decisions.
Matt H. Evans, CPA, CMA, CFM
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7/24/2016
CI Prevention
One of the most “forgotten” components
within competitive intelligence is prevention.
Don’t forget, your competition is doing
competitive intelligence against you. You
need CI Prevention. For example, only put
minimal information into your regulatory
filings. Be careful how you release
information! And best of all, don’t be
predictable in your strategic behavior.
Matt H. Evans, CPA, CMA, CFM
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7/24/2016
Getting Started
Finally, one way to get started in the field
of CI is to join the Society of Competitive
Intelligence Professionals:
SCIP
1700 Diagonal Rd Suite 600
Alexandria, VA 22314
(703) 739-0696
www.scip.org
Matt H. Evans, CPA, CMA, CFM
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7/24/2016