Competitive Intelligence

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Competitive Intelligence

It takes a simple mind to run a simple machine, but a shrewd mind is needed to run an organization, association, or business. Business intelligence has become a big principle in industries throughout the years. “During the second half of the 20th century, the United States and Canada, Western Europe, as well as Japan and a number of other countries, have evolved from primarily manufacturing-based economies to more information-based societies” (Kara). A business needs to have a mission to be successful. To help accomplish missions for businesses, business intelligence is utilized. To run a productive organization effectively and efficiently, certain things need to be accomplished.

To start the process of applying business intelligence, as many possible sources of information must be gathered. After the information has been collected, it must be sorted into different categories. These categories are either valuable or non-valuable information, otherwise known as intelligence. Since the intelligence is derived by businesses for businesses, it is considered business intelligence. Business intelligence has a direct effect on how well its organization does in the marketplace. This intelligence is used to identify forewarnings of disasters as well as opportunities that may occur. After the intelligence needs have been identified for a business, the information is then collected by an all source fusion. After analyzing the data that has been collected, it can be determined which information can be used, and what can be discarded. The results are then passed to the bosses of an organization, who in turn, make a decision. This completes the four-phased intelligence cycle.

After you establish your business goals, various techniques are used to attain and surpass the organization’s goals. One technique is through competitive intelligence. Competitive intelligence can be considered a subsidiary of business intelligence. The purpose for competitive intelligence is to keep businesses on the cutting edge, abreast of their competitors, ahead in the global markets, and to establish better quality products and services. Competitive intelligence can be defined as “A formalized, yet continuously evolving process by which the management team assesses the evolution of its industry and the capabilities and behavior of ...

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...ded and comprehend it differently, depending on the needs of their businesses. “Never equate paper with competitive intelligence. Unfortunately, many managers think that by spending countless hours on computer-generated slides, charts and graphs, and footnoted reports, they have delivered intelligence. All they have managed to do is to slow down the delivery of critical intelligence” (Fuld).

Due to time constraints, limitations of resources, financial constraints, manpower issues, enormous amounts of data, and the expertise of analysts, competitive intelligence needs to be determined by relevance. Many illegitimate sources are disguised as truths, or facts. These illegitimate sources, along with rumors, are difficult to control and can be used as deception intelligence. There is not a single method of intelligence that can be considered better than another as a general rule. Even though, competitive intelligence can help your business during a recession, it is not a cure all medicine.

Works Cited

1. (http://www.brint.com/papers/ciover.htm)

2. (http://www.fuld.com/whatCI.html)

3. Kara, Dan “The New Face of Business Intelligence.” Software Magazine, November 2000

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