Recently, the news of a “lost” prototype of the new Apple iPhone graced the covers of many prominent news publications (for example, CNN) . Could this be the design for the next model that most think will be revealed next month? Notice, the reports said, the new case design, the forward facing camera and the improved display. Apple must be dismayed that the revealed information. How would this information affect Apple’s competitors? Would not the early disclosure help them? Perhaps these competitors could alter their marketing messages, revamp their own products and initiate counter-measures in May (rather than after the official announcement).

A casual perusal of many websites such as Gizmondo and Engadget highlights many similar leaks. These sites routinely report pre-launch information about new products. Sometimes the information sources are clear. In many cases, the sources are unnamed. Sometimes the information is detailed. Often, the details are sketchy.

How should competitive intelligence people deal with leaks?

Here are five important principles and cautions.

It is no surprise that competitive intelligence issues and activities regularly show up in business news. After all, intelligent and motivated professionals everywhere are furiously competing to win. To the untrained eye, it may seem that companies’ activities are disjointed or nonsensical (and sometimes they are). However, to someone trained in competitive intelligence, there are stories behind the public moves. From those stories, emerge motivations, strategies and opportunities.

For example, take the recent New York Times article, “Apple Buys Intrinsity, a Maker of Fast Chips” at http://www.nytimes.com/2010/04/28/technology/28apple.html, about Apple. Apple, flush with cash and the serial hits of the iPod, iPhone and iPad, purchased a chip design company. What does this mean? How does it fit with previous Apple moves? How does it confirm or change Apple’s perceived strategy? What might their next move be?

These questions are fundamental questions for someone competing with Apple and the core domain of competitive intelligence professionals.

I would like to lose a few pounds. It would make me feel better, my pants would not be so snug and my blood pressure would go down. You would probably agree that these are laudable goals. So, a remarkably bad idea for me is to go somewhere that they serve chips and salsa. Or pizza. (Or a few other things.) It is just that certain things attract me so strongly that consuming them in moderation is difficult. Thus, because I cannot avoid these temptations, my weight loss goal is especially hard to reach (but I do enjoy mealtimes).

Of course, these foods are not completely bad. Maybe if I ate a few chips or only one slice of cheese pizza, I would do better. Perhaps I could eat other healthier foods more often and combine them with better exercise habits. I need the whole package to reach and maintain the correct weight. Whatever else I do, I especially need to be aware of the common pitfalls to avoid (goodbye to deep dish pizza).

In competitive intelligence, it is my experience and observation that we have pitfalls that inhibit us from reaching the desired goal. That goal, in my opinion, is to help strategy leaders make better decisions. Nevertheless, the pitfalls distract the competitive intelligence professional from usefully satisfying the needs of strategy decision-makers.

Here are my five (least) favorite pitfalls that should be avoided. I wonder if you agree with me.

1. Read the rest of this entry

You know what it is like to define and shepherd a product through the long process of development and then face the ultimate marketplace judgment about your efforts. There are so many times that you would pay handsomely for credible information that helped you decide on the right strategy, select the right market, position correctly versus your competitors and, of course, reach your revenue and profit goals. Good competitive intelligence addressees all of those questions.

Your job is to champion one or more products for your company. Each product needs to be successful in a marketplace crowded with existing competitors. New threats emerge over time that you have to anticipate and proactively manage. Development teams count on your guidance to build the product with the right features. Your general manager relies on you to help deliver the needed revenues and profits. All along the way, you have to understand the environment, explain your recommendations and justify the company’s investments for your product. This is not a job for the timid.

Competitive Intelligence Helps With the Challenges