A broad definition of competitive intelligence is the action of defining, gathering, analyzing, and distributing intelligence about products, customers, competitors and any aspect of the environment needed to support executives and managers in making strategic decisions for an organization.
Key points of this definition:
- Competitive intelligence is an ethical and legal business practice, as opposed to industrial espionage which is illegal.
- The focus is on the external business environment.
- There is a process involved in gathering information, converting it into intelligence and then utilizing this in business decision making. Some CI professionals erroneously emphasize that if the intelligence gathered is not usable (or actionable) then it is not intelligence.
A more focused definition of CI regards it as the organizational function responsible for the early identification of risks and opportunities in the market before they become obvious. Experts also call this process the early signal analysis. This definition focuses attention on the difference between dissemination of widely available factual information (such as market statistics, financial reports, newspaper clippings) performed by functions such as libraries and information centers, and competitive intelligence which is a perspective on developments and events aimed at yielding a competitive edge.
The term CI is often viewed as synonymous with competitor analysis, but competitive intelligence is more than analyzing competitors — it is about making the organization more competitive relative to its entire environment and stakeholders: customers, competitors, distributors, technologies, macro-economic data etc.
Read more about Competitive Intelligence: Historic Development, Principles, Distinguishing From Similar Fields, Ethics
Famous quotes containing the words competitive and/or intelligence:
“Women of my age in America are at the mercy of two powerful and antagonistic traditions. The first is the ultradomestic fifties with its powerful cult of motherhood; the other is the strident feminism of the seventies with its attempt to clone the male competitive model.... Only in America are these ideologies pushed to extremes.”
—Sylvia Ann Hewitt (20th century)
“Preach in the name of God. The learned will smile; ask the learned what they have done for their country. The priests will excommunicate you; say to the priests that you know God better than all of them together do, and that between God and His law you have no need of any intermediary. The people will understand you, and repeat with you: We believe in God the Father, who is Intelligence and Love, Creator and Teacher of Humanity. And in this saying you and the People will conquer.”
—Giuseppe Mazzini (1805–1872)