Businesses of all sizes and in all industries spend a lot of time, effort and expense trying to gain a competitive advantage. The knowledge and insight this produces is called competitive intelligence, or CI.
CI has become an important component in business strategy, planning and operations. With roots in market research, CI is now an established business skill taught in top MBA programs such as Northern Kentucky University’s online MBA.
What Is Competitive Intelligence?
Sometimes called corporate intelligence, competitive intelligence involves research to discover, collect and analyze various types of information about competitors, their customers and other market data that factors into competitive advantage.
Businesses use market research techniques to gather CI but take a much deeper dive than typical market data gathering. CI data may include ethically harvested details such as a competitor’s operations or its industry business partners. But the focus of CI is on capturing information that provides a sharper understanding of the company as well as its industry.
CI’s Role in Business
Compare the competitive intelligence function to the role that intelligence officers and their staff have in the military. These officers receive reports from the field, which they share with commanders and planners who will develop strategies to outwit their opponents.
In business, the CI function works similarly: Competitive intelligence helps companies assess the market. CI’s significance arises from the role it can play to produce better results. Companies analyze information captured through CI research to understand their environment and the opportunities/challenges it presents. They use knowledge derived from CI to construct more effective business plans.
How Is CI Gathered?
Collecting intelligence on competing businesses involves the use of many resources and techniques.
- Visit online business research sites that specialize in information on corporations. Entrepreneur magazine lists many such sites. Some offer free information as well as fee-based materials.
- Entrepreneur also recommends to regularly check:
- National news agency and network feeds
- Press release wires PR Newswire and Businesswire
- Websites of local chambers of commerce, the Better Business Bureau, federal and state government, trade associations, and trade magazines and newspapers
- Websites of major competitors, suppliers and clients
- Study and monitor competitors’ websites and social media profile pages.
- Watch consumer and e-commerce sites for reviews about competitors.
- Join and monitor industry group sites on LinkedIn, Google Groups, Facebook and other platforms.
- Follow, friend and monitor competitors on social media.
- Schedule automatic Google searches for new information on competitors.
What Will I Learn about Competitive Intelligence from NKU’s MBA?
NKU’s online MBA program helps students gain foundational leadership and functional business skills for career advancement.
By choosing the Innovation Through Competitive Intelligence Stack, students explore how to leverage CI techniques and innovation to find value for organizations. The stack has three courses:
The Ideation to Innovation course helps students generate strategic options leading to viable strategies.
The course on Competitive Intelligence focuses on CI data capture, analysis and translation.
The Ideation to Value course covers approaches for taking new ideas to successful launch.
Learn more about Northern Kentucky University’s online MBA program.
Sources:
Investopedia: What Is the Difference Between Business Intelligence and Competitive Intelligence?
Marketing 91: What Is Competitive Intelligence and Its Role in an Organization?
Entrepreneur.com: Competitive Intelligence
Big Commerce: What Is Competitive Intelligence?
