Competitive Intelligence:

1. Competitive Intelligence: How to Get Started at the Sonoma State University Library

2. "Executives are so enchanted by the internal data the computer generates, that they have neither the mind nor the time for the outside. Yet all great change comes from outside the firm, not inside". -Peter Drucker

3. What is Competitive Intelligence? • Information that has been analyzed to the point where you can make a decision. • A tool to alert management to early warning of both threats and opportunities. • A means to deliver reasonable assessments. • Comes in many flavors. • A way for companies to improve their bottom line. • A way of life, a process. • Part of all best-in-class companies. • Directed from the executive suite. • Seeing outside yourself. • Both short- and long-term. What Competitive Intelligence Is and Is Not, Leonard Fuld, www.fuld.com/Company/CI.html

4. The Process/Methodology of CI DEFINE INFORMATION NEED Consider sources (that is, develop a plan of attack) Collection Evaluation Synthesis Analysis Reporting/dissemination/communication DECISION Rememberstaying organized is the glue for the entire process. (Research Logs)

5. What is out there? “Most of the information needed for a given project is available through publicly available channels. The percentage most practitioners place on this kind of public information varies from 80% to 90%. Given the amount of information available in our age, this 80% to 90%, if analyzed and presented carefully, can be more than adequate for most needs. The last 10% is insignificant.” - Combs, Richard E. & Morrhead, John D. (1992). The Competitive Intelligence Handbook. Metuchen, N.J, & London: The Scarecrow Press, Inc.

6. Information Dichotomies • Public vs. Private • Secondary vs. Primary sources (primary data vs. secondary data) • Scholarly vs. Popular • Qualitative vs. Quantitative • Relevance vs. Significance

7. Industry Information • North American Industry Classification System (NAICS) • A 6-digit code used to classify industries in the USA, Canada & Mexico (NAFTA countries) (Replaced 4-digit Standard Industry Code (SIC) – US industry only) • KEY POINT – It is used by non-governmental information resources to organize companies & industry data • NAICS assigned to companies may vary slightly across databases • All companies have a Primary NAICS but will also be assigned secondary NAICS as well http://www.census.gov/epcd/www/naics.html

8. Industry Information • Standard & Poor’s Industry Surveys • Current Industry Outlook • Trends and Issues • Key Industry Ratios & Statistics • Comparative Company Analysis • Composite Industry Data • Industry Valuations • Glossary of key terms • References to key journals, books, trade associations and government agencies related to the industry

9. Industry Information • Standard & Poor’s Industry Surveys • Strengths • Instructional: Will explain how to analyze a company in the industry • Clear identification of trends and issues • Weaknesses • 52 major industries (no emerging industries) • Only major public companies referenced • No geographic information • No biographical information

10. Industry Information • Mergent Online – Industry Reports • An overview/profile of the industry • Analysis of current environment • Market trends and outlook • Key financials for leading companies • Comparative data tables for major companies • Key references to industry-related organizations

11. Industry Information • Mergent Online – Industry Reports • Strengths • Industry Reports associated with company • Global Breakdown/Analysis (Asia, Europe, N. America) • Key points • Weaknesses • Only 20 major industries covered • Major public companies • Generally limited history on industry • No instructional aspects

12. A Word about Databases They are TOOLS for locating information

13. Boolean logic? Using AND and market share multiple sclerosis

14. Boolean logic? Using OR or market share multiple sclerosis Use or to connect related terms (multiple sclerosisordisseminated sclerosis) andmarket share

15. Boolean logic? Using AND NOT and not multiple sclerosis drugs

16. Other database tips: Truncation – Example:biotech* will retrieve biotechnologies, biotechnology, biotech and biotechs Phrase Searching – A phrase is 2 or more words in a row. DB will only find records with the complete phrase in them. Example: California wine industry Proximity Indicators – Vary by database (look in help or tips section). Can be useful in searching through loads of text. Example: President w/3 Bush Subject terms/classification system – Make up the internal organizational system in each database. Exploit this as much as possible.

17. Industry Information • ABI/Inform • Track business conditions, trends, management techniques, corporate strategies, and industry-specific topics worldwide. • Utilize Topics, Subjects and Classification System of db (example search: trends and wine) • Useful Concepts: market shares, trends, market strategy, consumer behavior, etc.

18. Industry Information • Factiva • Covers 30 majors industries w/ sub-categories • Comparison Report (company to industry) • Links from company to industry-related news • Resources include: • local and regional newspapers, trade publications, business newswires, media transcripts, investment analyst reports, market research reports, company profiles

19. Industry Information • Industry Associations • Why consult them? • To identify industry experts/leaders to contact • Will usually provide information on key issues affecting the industry (example: www.phrma.org) • For any free information and/or publications • Resources for identifying associations: • Encyclopedia of associations (in 2nd fl. Reference) • Small business sourcebook (in 2nd fl. Reference) • WWW: www.ipl.org/div/aon/, Gateway to Associations at www.asaenet.org

20. Industry Information • Government Information • National • Bureau of Labor Statistics www.bls.gov, Bureau of Economic Analysis www.bea.doc.gov • State • California http://my.ca.gov • SSU Databases: RAND California and Counting California • Local • Chamber of Commerce (Example: Santa Rosa www.santarosachamber.com) • Information on: taxes, funding, leading employers, wages, economic reports, etc.

21. Company Information • Mergent Online • Financials • ABI/Inform • Includes scholarly & popular sources, trade journals and newspapers • Use the Topic Guide: competition, case studies, trends, market shares • Factiva • Identify Key Competitors, market share, • LexisNexis Academic (newspapers) • Of course, the company’s website

22. External Environment • Read/scan at least one newspaper everyday • SNOOPY Catalog & Link+ (example: demograph* and ?) • ABI/Inform • Factiva • LexisNexis • Government Information (bls.gov, RAND California, Stat-USA, Statistical Abstracts of America) • Research/Special Interest/Non-profit Organizations (example: Pew Internet & American Life)

23. The World Wide Web • The Internet is free only if your time’s value is nothing.Friedman, G. et al. Rules for gathering intelligence on the corporate battlefield. Across the Board, Jul/Aug 2001, 38(4):19. • The Net is primarily a communications vehicle, not a deliverer of intelligence.You can find hints at competitive strategy, but you will also uncover rumors disguised as fact, or speculation dressed up as reality. Be wary of how you use or misuse the Net. Its reach is great, but you need to sift, sort, and be selective on its content. -Leonard Fuld

24. The Ten Commandments of Internet Searching As told by Washington Researchers www.washingtonresearchers.com • Know your search engine. Remembering that only a portion of all the websites are indexed by the best search engines leads right into #2. • Use multiple search engines (or metacrawlers) • Don't count on being anonymous. Don't forget about those cookies! • Search for sources, not just information. Look for people you can call (or organizations you may contact) to get more detailed information. • Consider the source of what you find. Just because it is in print, doesn't mean it's true. Information can be typed incorrectly or copied from another source that was wrong. Or perhaps it is written just to be misleading. • Be prepared to spend some money to get the really good stuff. • Ask, "Is there any reason to believe what I want is out there?" BEFORE going on-line. • Don't use the Internet to do a database service's work. • Know your outcome. Searching or surfing? Searching has an outcome in mind. Surfing implies enjoying the ride letting yourself be taken along where links lead you. Each has its purpose -- understand the difference. • Buy a kitchen timer. If you don't watch yourself, you will spend hours looking for something that can't be found or you will end up surfing instead of searching.

25. One final thought: • “Information is where you find it,”or in other words, you may find vital information in unlikely sources. Be open-minded, creative and make connections. Combs, Richard E. & Moorhead, John D. (1992). The Competitive Intelligence Handbook. Metuchen, N.J, & London: The Scarecrow Press, Inc.