Competitive Intelligence Solutions For Corporates | The X Future

Also known as corporate intelligence, competitive intelligence is the capability to collect, compute, analyze, and utilize information about the sector, market, competitors, products, customers, and supply chain.

1. What is Competitive Intelligence?

Competitive intelligence (CI) is an umbrella term to describe the process of collecting, evaluating, analyzing, and making insight-driven business decisions. It focuses on the business sector or category, market demand and fit, competitor activity, product innovation and market fit, the voice of the customer, and supply chain management

It empowers organizations to comprehend their competitive environment and the opportunities and challenges that come as a byproduct of their positioning. Apart from forecasting competitive behavior, Competitive Intelligence (CI) also focuses on historical market upheavals and objective analysis of past events.

The insights generated through competitive intelligence play a pivotal role in determining business strategy as it encompasses both trends and difficulties in an organized, comprehensible, and ethical manner.

Read more about the basics of competitive intelligence.

2. How Competitive Intelligence works

While competitive intelligence focuses on delivering actionable insights for different functions and objectives within an organization, it relies heavily on the below type of datasets for computing purposes:

  1. Corporate Strategy Evaluation
  2. Existing Operations Analysis
  3. Customer Experience Analysis
  4. Competitor Capabilities Evaluation
  5. Demand Forecasting

A competitive intelligence (CI) program focuses on creating different frameworks to understand areas like where your corporate strategy stands at the moment and the risks and opportunities that your organization might face. 

It then analyzes the efficiency and effectiveness of various business processes and evaluates your customer experience management performance. 

Also, a large portion of CI tools is oriented towards competitor analysis and devising tactics to outsmart them. Lastly, competitive intelligence is also focused on demand forecasting in order to support core business processes.

Generally speaking, this data is sourced from a variety of sources, including first-party, second-party, third-party, and zero-party data from existing customers, partners, competitors, and research pieces. 

It also requires you to gather data from industry experts, trade shows, conferences, news, and social media. 

On top of these, you may also ‘ethically’ source data from patent databases, government records, and publicly available financial statements.

This way, it goes way beyond knowing your competitors and customers- it helps you prevent and limit damages in unfavorable conditions while building competitive advantages. 

In a nutshell, competitive intelligence saves corporates from blind corners both within and outside their organizations.

Read more about how competitive intelligence works.

3. What is the role of competitive intelligence?

Competitive intelligence has a direct impact on all functional and strategic areas of a company, but for simple understanding, its role can be classified into:

  1. Devising organization-wide and department-wide strategic plans, frameworks
  2. Creating competitive tactics against market rivals
  3. Developing new product roadmaps, establishing product-market fit, and branding exercises
  4. Tracking and continuously analyzing competitors
  5. Scouting for emerging trends and opportunities as well as industry-wide disruptions
  6. Evaluating brand positioning and product messaging

Read more about the role of competitive intelligence.

4. Why is competitive intelligence important?

Nowadays, a comprehensive competitive intelligence program is no longer a vanity department in select Fortune 500s. It is, in fact, either a conscious company-wide effort or a subconscious initiative on the part of top executives in the organization.

With the increasing scale and reach of innovation, and technological progress, it can be devastating for a company to be unaware of its present and future surroundings.

Especially multinational corporations need to implement 360-degree competitive intelligence programs since their average lifespan is constantly on the decline. 

A report from McKinsey finds that over 75% of the Fortune 500 companies on the list will be replaced by 2027 if this trend continues.

Thus, failing to respond to arising situations can lead your organization to perish regardless of your current budget, technological expertise, and market share.

Competitive intelligence is a dependable answer to such issues since it empowers you to continually monitor and adapt to market circumstances and identify hazards and opportunities to evolve accordingly.

Read more on the importance of competitive intelligence.

5. What are the benefits of Competitive Intelligence?

Competitive intelligence gives firms the most precise and comprehensive inputs for gaining an edge over their rivals.

Every business aspires to become a market leader, the gold standard of its sector, but not everyone knows how to exactly get there. 

That’s where competitive intelligence helps businesses by aggregating, computing, and enabling insight-driven business decisions.

Here’s a list of benefits that corporations can avail with the help of competitive intelligence:

  1. Gather critical insights
  2. Study past market trends and reasonably predict future trends
  3. Make data-driven, timely, and tractable decisions
  4. Improve finances, market positioning, and longevity of the company
  5. Enhance customer experience, and employee experience
  6. Stay relevant and attentive to real-life conditions inside and outside of the organization

Read more about the benefits of competitive intelligence.

6. What are the main components of competitive intelligence?

For a competitive intelligence report to be insightful and actionable, it must emphasize both important factors and the relationships between them with respect to your objectives. 

Depending on the goals, risk factors, direct hazards, and parameters you set for your objectives, you would require either all or selected CI strategy components listed below:

  1. Sector Intelligence
  2. Market Intelligence
  3. Competitor Intelligence
  4. Product Innovation Intelligence
  5. Customer Intelligence (Voice of the Customer)
  6. Procurement and Supply Chain Intelligence

Read More about important components of competitive intelligence.

7. What is a competitive intelligence example?

Let us understand competitive intelligence with the help of an example of Company A, which aims to beat its arch-rival Company B in a specific market. 

The customer ratings of Company B’s products can be easily sourced from third-party review websites, and they can be used to run a voice of the customer analysis. 

This will allow Company A to understand the strengths and shortcomings and, in turn, learn about the market gap and potential hazards.

As a result, it will help them track changes in positioning and messaging of Company B while also learning about what the rival is doing right and what it lacks in its approach. 

Read more examples of harnessing competitive intelligence.

8. How to conduct competitive intelligence?

Depending on your goals, current positioning, budget, and domain expertise, there are several approaches to conducting a competitive intelligence program.

However, the below list of activities can act as a guiding framework for your CI strategy to help you create the building blocks for your desired results:

  1. Identify and understand your competition.
  2. Set measurable goals for your CI strategy.
  3. Determine data collection tactics
  4. Collect and evaluate your data.
  5. Democratize the insights and take opinions from important stakeholders.

Read more about conducting competitive intelligence.

9. Competitive Intelligence best practices

The success of your competitive intelligence initiatives largely depends on the correct ideation of your objectives and performance parameters. 

However, a vast number of factors may impact the implementation of competitive intel-driven changes. 

To help our readers make the best of their competitive intelligence initiatives, here’s a list of best practices shared by The X Future team:

  1. Take all stakeholders into confidence before defining the objectives of your competitive intelligence strategy.
  2. Divide your competitive intelligence goals into: strategic, operational, and tactical
  3. Define the implementation roles of your internal stakeholders before undertaking a CI initiative
  4. Build comprehensive dashboards and reporting formats to track the impact and progress of your CI strategy
  5. Interweave the KPIs and KRAs of all staff members with the objectives of your competitive intelligence-based goals
  6. Use a common platform for communication and collaboration in your company which can be used to democratize competitive intel across the organization.

Read more about competitive intelligence best practices.