The notion of simplifying competitive intelligence does not originate with me. However, I do see the need for simplification regularly as I speak to companies and organizations that have little experience with the topic. My thorough treatments of competitive intelligence, as often as not, leave the audiences overwhelmed and sometimes confused. All of that confusion could be overcome with time, no doubt. Still, there is a lingering sense that maybe I have not left them with actionable information. That is, have I given them a simple framework to quickly assess what they have been doing so that they can decide what to differently or additionally?

This video is my humble attempt at remedying the problem. Indeed, at a recent company presentation, these three questions “stuck” more than the process information, analytical techniques or strategy implications of competitive intelligence.

I often talk with SMB owners and managers. When they ask about what I do, I explain that I help companies with competitive intelligence. “Isn’t that spying?” they ask as they usually take a defensive step back from me. “No,” I hasten to explain, “it is about understanding the competitive environment better so that you can make better decisions.” If they trust me even a little, they exhale and begin to relax. I then get a chance to answer the implied question, “What does competitive intelligence have to do with me?”

The key is to recognize that SMB’s already are doing competitive intelligence whether this is recognized or not by management.

Their competitive intelligence efforts may be ad hoc, incomplete or ineffective. Nevertheless, competitive assumptions are made and used.

Could it be done better?

From this point, things move faster. It is easy to talk about the important questions that every SMB must answer. (My post “Competitive Intelligence Value for SMB’s” identifies these questions.) “Wouldn’t you like timely, credible information that helps you improve your results and decrease your risks?” I ask. That is easy for them to answer. “Of course,” they reply though there is some mystery about how such information can be obtained within their budget and capabilities.

“Not to worry,” I tell them. “Once you know your competitive intelligence priorities, you can allocate your time and resources according. Then, for the priorities that you act on, there are specific approaches that you can tailor to your budget.” (more about this in a later post)

I have their attention now. Before I suggest priorities, I set the context with some questions.

“Is your industry competitive? Does knowing about competitors and the environment help you decide your strategies? Assuming you had valuable information, would you use it?”

Again, it is easy to answer “yes” to these questions. Now the issue becomes how to apply limited resources more effectively. Hence, I have developed my Top 10 list of priorities for SMB’s. Competitive intelligence supports each one.

As they say in the Lion King, it is all about “the circle of life.” Things begin with a new idea. A few of those ideas result in compelling products. For a small minority of those products, the right people come together to create a valuable proposition for customers. With customers in hand, the company grows and prospers. One day, competitors begin to envy the company’s success. Meanwhile, the competitive environment gets tough. What will the company do? Can it adapt and continue to be successful. Some companies do and go on to bigger and better things. However, all too often, some “die.” Swallowed up by another, stronger company that extracts what is valuable from the dying company.

So, we mourn the passing of Palm- subsumed into the HP technology behemoth. How did this happen? What are the implications for HP? How does it affect others? Competitive intelligence plays a role in answering such questions.

HP’s Palm Plans May Leave Microsoft Out in the Cold

There are many reasons to acquire a company. It could be that the target company has many desirable customers, unique access to certain market segments or a valuable brand in a specific customer demographic. Who tracks such things about competitors or potential acquisitions? Apparently, HP does. (Asset Tracking, Four Corners Analysis, Intellectual Property Evaluations)

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.