by Dr. Dov Reichman, Spectra Analytics Ltd.
In 1988, Tamar and Ben Gilad's book, "The Business Intelligence System" was published. In its introduction to the Hebrew edition (Business Intelligence as a Managerial Tool, Ateret, 1992) Ben Gilad and Dekel Golan state: "The first requirement for effective intelligence is creating a framework where good questions are asked in". By this parameter, many Israeli companies indeed have a fine foundation for collecting effective intelligence.
Dealing Ethically with Public Information
Business intelligence or competitive intelligence (Competitive Intelligence - CI), as indicated in the book mentioned above, "deals ethically with information which is available, or semi-visible, for the purpose of planning".
The term "visible and available information" refers primarily to data which is published and available to the public. The term "semi-visible information" refers to data collected in the field, such as information collected from customers, suppliers, colleagues and others".
Competitive intelligence combines technical abilities in locating relevant information throughout the Internet, especially in depths where average web surfers aren't accustomed to reach, and are defined as hidden (Hidden Web). Searching for information throughout the Hidden Web requires high skills regarding the use of search engines and search key words. In addition, information provided by social networks constitutes a reliable source for information regarding employee and executive movements, as well as trends and changes in different companies.
Alongside technical abilities, there is a requirement for a basic understanding of defining information gaps, forming information collecting plans and analyzing the relevant information, in order to present it to the company's decision makers.
Defining the Necessary Information Gaps for Decision Making
There is a significant importance to defining precisely the necessary information gaps required for decision making processes. There is a lot of information we would be pleased
to have, yet is not a necessity for making corporate decisions. Therefore, there is a significant importance to identifying what information is crucial and what is not.
This approach requires the company's leading team and the element in charge of information services, to have a high level of expertise. This will allow reducing the resources required for tracing the required information and meeting a short timetable reaching the necessary analyzed information.
A Deep Understanding of the Required Information
Large companies generally have in-house departments or teams that routinely specialize in business intelligence; however, small and medium size companies usually depend on outsourced services, which accompany them throughout the processes of collecting business intelligence.
The team of experts which specialize in business intelligence, must work coincidently with many elements inside its company and is essential for it to have a deep understanding in the technological fields the company is involved with, in order to be able to have a fertile and effective conversations with information sources inside the company, such as: executives, salesmen, logistics workers, drivers, technicians, etc.
In many instances, other important pieces of the puzzle can be found inside the company, while the employee holding the relevant piece of information isn't aware of its importance. Locating these pieces of information will substantially reduce the amount of time and effort needed in order to formulate the complete picture regarding outside information.
A Dynamic Market Requires Fast Solutions
Competitive intelligence may provide the answer or solution when the company management needs to make a strategic decision related to the company's business future. Nonetheless, it can also provide on-going support for other processes such as development, manufacturing, and marketing by providing short term and tactical information.
The high dynamics which characterize markets in most fields today require an ability to provide solutions to short term information gaps. Furthermore, there are many issues,
specifically regarding development processes, in which short term responses are required, in order to avoid heavy costs in applying new approaches.
Alertness and Awareness in Avoiding a Flow of Information Out of the Company
In order to maintain a company's competitive advantage, it’s advisable to increase the company's executive's and employee's awareness regarding the flow of information out of the company, and to increase awareness and institute professional guidance in regard to the use of e-mail, transferring files to customers and suppliers and understanding of the ramifications of internet exposure.
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Dr. Dov Reichman, is the CEO and owner of Spectra Analytics Ltd. which specializes in strategic planning for high tech
companies and accompanies business throughout processes of business development and international marketing
