Marketing Management
Introduction to
Intelligence
Paul Dishman, Ph.D.
Department of Business Management
Marriott School of Management
Brigham Young University
Lecture 7
Marketing Management
How do you get to be
competitive?
• Out-think and out-perform the
competition
• Proactive, offensive actions
– reduce decision uncertainty
– spot new threats
– monitor competitive initiatives
– exploit competitive vulnerabilities
Paul Dishman, Ph.D.
Marketing Management
Intelligence and Competition
“In a competitive world whose companies have access to
the same data, who will excel at turning data into information
and then analyzing the information quickly and intelligently
enough to generate superior knowledge?”
-Max Hopper, former Chair
“Scale is not all positive in this business.
Cleverness is the positive in this business.”
- Bill Gates, 1993
Paul Dishman, Ph.D.
Marketing Management
What is Competitive Intelligence?
“Competitive Intelligence is…
a systematic & ethical program
for gathering and analyzing
information about your
competitors’ activities
and general
business trends
to further your own
company’s goals.”
Larry Kahaner, 1996
Paul Dishman, Ph.D.
Marketing Management
What is Competitive Intelligence?
• Any intelligence product or process that
makes you more competitive
• Includes
– marketing intelligence, business intelligence,
competitive technical intelligence, competitive
financial intelligence, competitor intelligence,
competitive analysis, etc.
• Converting information into actionable
intelligence
Paul Dishman, Ph.D.
Marketing Management
Who uses CI?
vs.
Paul Dishman, Ph.D.
Marketing Management
What is Competitive Intelligence?
Source
Purpose
Target
Internal
Strategic
Competitors
External
Tactical
Customers
Operational
Suppliers
Quantitative
Individuals
Qualitative
Relationships
Environmental
Process
On-going
End Product
Project-based
Multi-disciplinary
Paul Dishman, Ph.D.
Marketing Management
Where does CI fit in the Firm?
Business Intelligence
Operations
Research
- production
- audits
- benchmarking
- etc.
Technical
Research
- R&D
- IP
- competitors
- etc.
Company
Research
- suppliers
- customers
- competitors
- relationships
Market
Research
- products
- customers
- competitors
- etc.
Environmental
Research
- legal/political
- competitive
- demographic
- etc.
Competitive Intelligence
Paul Dishman, Ph.D.
Marketing Management
Model of CI
Intelligence Process and Structure
Planning
and Focus
Collection
Analysis
Communication
Decision
Organizational Awareness and Culture
Calof & Dishman 2000
Paul Dishman, Ph.D.
Marketing Management
Essence of CI
• CI is legally gathering available information
• Not James Bond, more like “Sherlock Holmes
meets Bob Woodward”
• Systematic, ethical research approach to
knowledge acquisition
• Virtually everything you need to know is
available, albeit hard to find
• Collection techniques, analysis mentality,
decision makers
Paul Dishman, Ph.D.
Marketing Management
The State of CI in Industry
• 22% of Fortune 500 have CI divisions
• 80% less than 10 years old
• P&G, Cisco, Motorola, Shell, AT&T, Lucent,
Dow, Kodak, 3M, Quest, IBM, intel…
• Baldridge Award Winners: 7 of last 10
• 10 universities in US including:
– BYU, Wharton, UCLA, U. Pitt., Drexel, AGSIM,
Indiana, Tennessee, Mercryhurst, Idaho State
Paul Dishman, Ph.D.
Marketing Management
Applications of CI
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New product introductions
Changes in market conditions, structure
Actions of competitors
Industry trends (and lessons)
Acquisition targets
New technologies, processes, IP
Benchmarking
Supplier evaluation
Negotiation preparation
Talent searches
Paul Dishman, Ph.D.
Marketing Management
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6,000 members
2,500 attendees to annual conference
March 8-9, 2001, Seattle
57 Information vendors
Membership is highly recommended
Student dues only $25.00
Paul Dishman, Ph.D.
Marketing Management
SCIP Overview
• Educational seminars & conferences throughout year
• Refereed journal of competitive & business strategies
(Competitive Intelligence Review), a quarterly
magazine of CI issues, a monthly Actionable
Intelligence newsletter, on-line Membership Directory
• Supports the research and publication of materials
on competitive & business strategy.
• 30 world-wide chapters
Paul Dishman, Ph.D.
Marketing Management
Competitive
Intelligence Review
Paul Dishman, Ph.D.
Marketing Management
For more info:
www.scip.org
Paul Dishman, Ph.D.
Marketing Management
Other groups with interests in CI
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American Marketing Association
Academy of Management
Special Libraries Association
International Association of Law
Enforcement Intelligence Analysts
• American Accounting Association
• Account Management Association
Paul Dishman, Ph.D.
Marketing Management
CI Requires…
• Research and Investigation
• Intensive Reading
• Group Effort
– Analysis Capability
– Multi-disciplinary: marketing, management,
finance, accounting, information systems, law,
policy, science, math, products, psychology,
etc.
– Multi-talented
• Dogged determination
Paul Dishman, Ph.D.
Marketing Management
What tools do we really need?
Analytical Tools
• Boston Consulting
Group Grid
• SWOT Analysis
• DuPont Analysis
• Bayesian Analysis
• etc.
Intuitive Insight
• Pattern matching
• Exception
Identification
• Complexity
Reduction
• Contextual
Apperception
• etc.
Paul Dishman, Ph.D.
Marketing Management
Can you find meaning in this?
Per-Share Data
Book Value (mrq)
Earnings (ttm)
Earnings (mrq)
Sales (ttm)
Cash (mrq)
$12.87
$4.69
$1.15
$50.29
$2.18
Valuation Ratios
Price/Book (mrq)
Price/Earnings (ttm)
Price/Sales (ttm)
7.77
21.33
1.99
Income Statements
Sales (ttm)
EBITDA (ttm)
Income available to common (ttm)
$90.0B
$17.4B
$8.4B
Paul Dishman, Ph.D.
Marketing Management
Can you find meaning in this?
Paul Dishman, Ph.D.
Marketing Management
Can you find meaning in this?
Paul Dishman, Ph.D.
Marketing Management
Can you find meaning in this?
IBM Semiconductor Executive King Leaves to
Head AMI Semiconductor
Christine King, one of the top two executives in International
Business Machines Corp.'s fast-growing semiconductor group, is leaving
to head up a closely held competitor, according to people familiar with
the matter. Ms. King, vice president, Semiconductor Products, IBM
Microelectronics, reported to John Kelly, IBM's group vice president for
technology. Ms. King will become chief executive of AMI
Semiconductor, a small, closely held semiconductor company based in
Pocatello, Idaho, the people said. AMI specializes in application-specific
integrated circuits, known as Asics. Under Ms. King's leadership, IBM
has become the world leader in Asic chips in the past two years.
Paul Dishman, Ph.D.
Marketing Management
What is needed for Management?
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Experience
Personal Insights
Intuition
Tools
(you)
(you)
(you)
(MBA)
• Which of these are more important?
• Do you hire content expertise and train to
analyze or hire intuitive thinkers and train
content?
Paul Dishman, Ph.D.
Marketing Management
Suggested Research Topics in CI
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What is the domain of CI?
Intelligence model theory development
Competitive analysis theory development
Personality fit between the roles within the CI process
The relationship between KM & CI
Network analysis
Impact of EEA, other laws
Cross-cultural/country applications of CI techniques
Intelligence in the Book of Mormon
Paul Dishman, Ph.D.
Marketing Management
Summary
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Very little investment to gain great rewards
Opportunity to gain short-term “good” business
Opportunity to gain long term competitive advantage
Necessary resource for Strategic Planning
Enhances the learning of the entire organization
Creates a sense of constant competition
Paul Dishman, Ph.D.