“The prize goes to the person who sees the future the quickest.”
William Stiritz
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Short history of Competitive Intelligence
Competitive Intelligence or Intelligence in Business has it’s origins in the military intelligence activity and was born over four decades ago in the United States. Some of the big American companies have hired retired officers from the intelligence services in order to create early warning systems on the actions of competitors. If at that time things were delicate, as in the case of Marriott, today the activity of competitive intelligence is an activity of collecting and analyzing information placed fully in the ethical and lawful zone. There is a big difference between an IT specialist and an intelligence analyst. There aren’t any IT specialists who can make good intelligence analysis as there aren’t any intelligence analysts who can create good IT programs.
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Competitive intelligence, sometimes referred to as corporate intelligence, refers to the ability to gather, analyze, and use information collected on competitors, customers, and other market factors that contribute to a business's competitive advantage. Competitive intelligence is important because it helps businesses understand their competitive environment and the opportunities and challenges it presents. Businesses analyze the information to create effective and efficient business practices.
By definition, competitive intelligence assembles actionable information from diverse published and unpublished sources, collected efficiently and ethically. Ideally, a business successfully employs competitive intelligence by cultivating a detailed enough portrait of the marketplace so it may anticipate and respond to challenges and problems before they arise. Competitive intelligence transcends the simple cliché "know your enemy."
Companies essentially face three major challenges: internationalization, innovation, and intelligence analysis. To address these challenges, companies must introduce and incorporate economic and competitive intelligence into their organizational structures. Access to reliable information and the ability to analyze it are increasingly important factors in avoiding impulsive decisions with a high level of uncertainty.
Intelligence can be categorized according to who gathers it. When gathered by public services, it is referred to as “economic intelligence,” but when gathered by companies, it is called “competitive intelligence.” Competitive intelligence is a legal business practice, as opposed to industrial espionage, which is illegal.
Depends on the type of the product and complexity. Creating an internal Competitive Intelligence structure involves costs that can reach hundreds of thousands of EUR/USD per year for one or two specialists.
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