Competitive intelligence is described as a complex process that includes several steps such as defining and analyzing information regarding market’s areas. Having useful insights about consumers, products, and competitors, will help you build a stronger company, and it will make you take better decisions. Furthermore, this practice is totally ethical and legal, being opposed to industrial espionage.

What Is Competitive Intelligence?

Aspreviously mentioned, competitive intelligence refers to using information collected from the market into business decision making. Some specialists even state that if these insights are not usable or actionable, then the information cannot be considered intelligence. There is even a Society of Competitive Intelligence Professionals, founded in 1986, in the United States.

Many important companies have implemented this practice in their business model as a way to overcome market’s challenges and avoid threats. However, this process is also useful for when you want to find new trends and opportunities. In today’s society, knowing what your competitors are doing is vital. Also, you need to focus on the way your industry changes. Through strategic intelligence, you can even track others’ performance and receive inspiration from your market’s leaders.

How to Use Competitive Intelligence?

Know The Parameters

• Competitive intelligence (CI) lowers the risks while identifies different opportunities.
• The real CI is the one formed of actionable tips that offer you a strong competitive advantage. In other words, you shouldn’t waste your intelligence because you don’t take action.
• As I stated above, CI does not involve illegal methods such as espionage. I understand why some of you might think this concept is suspicious. At first, both military and political fields have used this procedure.
• All SCIP members must accept the rules of the Code of Ethics. This means you must also follow some ethical constraints.
• It is true that CI focuses on your competitors. However, it also highlights other market aspects. Among these, there are those of your consumers, technologies, industry, and more.

• Follow The Proper Steps

• The CI process has several steps, but it always ends with receiving feedback. This highlights the method’s value.
• The first step of the process is planning and finding the right direction. Think about what you need to know and what insights you already have.
• The following step is a combination of data collection and research. The most important thing is to collect relevant data. You can do this on your own if your company has the necessary budget. Otherwise, you can gain access to this kind of information from secondary sources.
• The third step refers to data analysis and production. This is the most important part of every competitive intelligence process. During this step, your team will turn raw information into actionable intelligence. Through analysis, you will identify different patterns and create several potential scenarios.
• The fourth step represents the data dissemination. Make sure you bring it as close as possible to the decision makers. Prepare yourself for a lot of e-mails and reports.
• The final step is decision and action. Then is when you achieve the purpose of competitive intelligence.

Let’s Recap

Competitive intelligence will help you reconfigure the way you see business as well as strategic decisions. This will only happen if you apply it properly. A well-organized plan is not enough anymore in today’s economy. Now, more than ever, business owners must foresee how things will eventually develop. For this to happen, you need to collect as many details as possible related to your industry. Then, transform them in actionable tactics.