An Introduction to Competitive Intelligence

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An Introduction to Competitive Intelligence

• Assoc. Prof. Hal P Kirkwood
• Leadership Ethics Series
• Management Economics Library
• Krannert School of Management
• Purdue University
• April 23, 2009

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What is CI?

• Competitive Intelligence A systematic and
  ethical program for gathering, analyzing, and
  managing external information that can affect
  your company's plans, decisions, and operations.

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CI Cycles

• Ashton and Stacey Business Intelligence Model
• 4Cs Process
• SCIP CI Process

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Design and Setup
Information Collection
Analysis
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Mini Case 1 Expert Opinions

• Find a SWOT Report for Eli Lilly
• Business Source Premier
• Find an Investment Analyst Report for Eli Lilly
• Investext

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State of the Art Competitive Intelligence. D.
Fehringer, B. Hohhof, T. Johnson
http//www.scip.org/pdf/f_060608_stateofart_sum.pd
f
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Categories of Competitive Intelligence

• Market Intelligence
• Industry level information on
• Trends
• Government regulations
• Geopolitical issues
• Partner Intelligence
• Monitoring activities of
• Companys major suppliers
• Strategic partners
• Competitor Intelligence
• Detailed monitoring analysis of
• Key competitors
• High-level scans of other competitors
• Ongoing identification of new entrants
• Technical Intelligence
• Monitoring advancements of
• Technical developments
• Customer/Prospect Intelligence
• Determining monitoring

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Mini Case 2 Industry Partner Analysis

• Identify an industry overview for the
  pharmaceutical industry
• Net Advantage
• Compare Eli Lilly against its industry ratios
• Factiva
• Determine Eli Lillys suppliers and strategic
  partners
• Capital IQ

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State of the Art Competitive Intelligence. D.
Fehringer, B. Hohhof, T. Johnson
http//www.scip.org/pdf/f_060608_stateofart_sum.pd
f
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Uses/Applications of Competitive Intelligence

• Facilitate Strategic Direction
• Strategic Alliances
• New Product/Service Development
• Sales Process
• Marketing/Communications/Public Relations

• HR and Recruitment
• Rival Firms
• Competitor Market Scenarios
• Acquisitions/Preventing Acquisition

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Mini Case 3 Legal Regulatory Documents

• Review Eli Lillys recent patent registrations
• US Patent Trademark Office
• http//www.uspto.gov/
• Find drugs currently in the pipeline for Eli
  Lilly
• http//www.phrma.org/

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Methods Models used in CI

• SWOT
• Porters 5 Forces Model
• Value Chain Analysis
• Four Corners Model
• Blindspots Analysis
• Strategic Group Map Technique
• Executive Management Profiling
• Financial Ratio Analysis
• Environmental Event Analysis
• Plus more

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State of the Art Competitive Intelligence. D.
Fehringer, B. Hohhof, T. Johnson
http//www.scip.org/pdf/f_060608_stateofart_sum.pd
f
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State of the Art Competitive Intelligence. D.
Fehringer, B. Hohhof, T. Johnson
http//www.scip.org/pdf/f_060608_stateofart_sum.pd
f
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3 key types of intelligence

• Recurrent Intelligence
• Keep a pulse
• Not linked to a specific strategic or tactical
  decision
• Reference Intelligence
• Frequently requested
• Used as foundation for specific strategic or
  tactical decision
• Strategic Intelligence
• Covers wide variety of topics
• Linked to a specific strategic or tactical
  decision

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Mini-Case 4 Financial Filings Media Sources

• Identify risks facing new entrants in the
  pharmaceuticals industry
• 10K Wizard (Free siteSEC Edgar
  http//www.sec.gov/edgar.shtml)
• S-1 Filings
• Find an interview with the President of Eli Lilly
• Lexis/Nexis

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State of the Art Competitive Intelligence. D.
Fehringer, B. Hohhof, T. Johnson
http//www.scip.org/pdf/f_060608_stateofart_sum.pd
f
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Content Generation
Magazines Newswires SEC Filings Web
Sites Census Market Research Newspapers Internal
External Experts
Business Intelligence Software News
Portals Online Directories
Competitor Profiling SWOT Analysis Trend
Analysis Simulation Forecasting
Communications Brand Marketing Position Human
Resources Suppliers Mergers/Acquisitions Financial
Product Dev. Business Dev. Public
Relations Marketing Information
Monitoring Tailoring Archiving
Vertical Portals News Portals Research Shops
ShiftCentral Inc, 2002 www.shiftcentral.com Introd
uction to Online Competitive Intelligence
Business Action
Business Action
Strategy
Strategy
Competitive Intelligence
Competitive Intelligence
Information Aggregation
Information Aggregation
Content Generation
Content Generation
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Any Questions?

• Hal P Kirkwood Jr.
• Assoc. Head
• Management Economics Library
• Purdue University
• kranlib_at_purdue.edu