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Breaking the CI Turnover Cycle

Breaking the CI Turnover Cycle. Elio Evangelista, Senior Analyst elio_evangelista@ cuttingedgeinfo.com www.CuttingEdgeInfo.com. © 2007 Cutting Edge Information. Competitive Intelligence in Sports . 2000, 2001, 2002, 2003, 2006. 1996. 1997. Key Idea #1: CI Teams are in Danger.

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Breaking the CI Turnover Cycle

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  1. Breaking the CI Turnover Cycle Elio Evangelista, Senior Analyst elio_evangelista@ cuttingedgeinfo.com www.CuttingEdgeInfo.com © 2007 Cutting Edge Information

  2. Competitive Intelligence in Sports 2000, 2001, 2002, 2003, 2006 1996 1997

  3. Key Idea #1: CI Teams are in Danger • Break the Cyclical Turnover • Give CI Teams More Time • Communicate Successes Constantly

  4. The CI Cycle Team Size 0 5 n Time (in years)

  5. Years CI Has Been in Place 25 20 15 10 5 0 Though some groups have been in place for more than 20 years, in general, CI is a young function at most companies. 23 20 Years in Place 10 10 7 6 5 5 5 4 2 1 1 1 0.5 0.5 0.2 L N I P C A D B E J H K G M F Average O

  6. Voice of CI – Communicating the Results “It’s relatively easy to produce these reports, it is hard to make sure people know where to get them and actually use them when they are planning.” - Interviewed Competitive Intelligence Manager

  7. Communication Through the Organization X CI CEO

  8. Key Idea #2: CI Structures Sometimes Inhibit Success • Utilize the CI/Market Research Overlap • Establish a Proactive CI Team

  9. Sales: 6% Business Development: 6% R&D: 6% To Which Department Does CI Report? CEO: 13% Market Research: 69%

  10. Voice of CI – Market Research Link “Whenever we collect competitor information, we are in fact collecting competitive intelligence.” - Interviewed Market Research Manager

  11. Percentage of Market Research Groups Collecting CI During Cutting Edge Information’s study Pharmaceutical Market Research, researchers discovered that the vast majority of market research departments also collect competitive intelligence. Does Not Collect CI - 13% Does Collect CI - 87%

  12. The CI/Market Research Overlap • Market Research focuses on: • Current market conditions • Market awareness for new products • Potential sales forecasts based on historical data Market Research Past Present Future • CI focuses on: • Developing scenarios and alternative futures • Scanning present-day data to forecast future events • Preparing brands to proactively change strategy based on market indicators Competitive Intelligence

  13. CI’s Top 5 Marketing Roles Percent of respondents rating CI effective or very effective* 1 Decision Support: 67% 4 Market Plan Development: 63% 2 Market Monitoring: 67% 5 Market Plan Input: 57% Identify Market Opportunities: 66% 3 *Source: Survey of SCIP members by The Pine Ridge Group, Inc. and T.W Powell Company

  14. Centralized vs. Decentralized Prevalence According to our survey, a large majority of companies maintain a centralized, strategic CI groups. Centralized Decentralized 25% 75%

  15. Centralized vs. Decentralized Tendencies Centralized CI groups are more strategically-oriented and, therefore, more proactive than decentralized units. Centralized Structure Strategically Oriented Proactive Tactically Oriented Reactive Decentralized Structure

  16. Key Idea #3: Get Everyone Involved • Build a CI Culture • Integrate Internal Functions • Establish Senior CI Leadership

  17. Company A’s CI Reporting Structure Company A has two distinct CI units – one housed under business development and the other under marketing. CEO President VP of R&D Sr VP of Marketing Sr VP of Market Research Director of Strategic Research Sr Director of Market Research Director of Marketing CI

  18. Company O’s Field-Based CI Process Sales Reps Sales Directors Centralized Competitive Intelligence Unit Though it isn’t mandated, the sales reps at Company O are encouraged to participate in collecting competitive intelligence. Data Sources

  19. President Head of Marketing Competitive Intelligence Medical Relations Government Relations/ Regulatory Brand Team A Brand Team B Brand Team C Brand Team D Integrating CI into the Culture At Company C, the CI unit is a sister organization to the brand teams and is housed under marketing. With this structure, the group has more brand level tactical influence than company-wide influence. However, should an issue arise that needs company-wide attention, CI also has a dotted reporting line directly to the firm’s president.

  20. Level of Executive Leading CI 19% 6% 19% 56% As seen, the majority of surveyed CI units are led by managers. However, 44% of firms employ someone more senior than a manager to head their CI departments. Manager Director Executive Director Senior Management

  21. Experience Makes a Difference Number of Years CI has been in Place Where Senior Leaders Head the Group Number of Years CI has been in Place Where Managers Head the Group 12.0 25.0 23.0 10.0 20.0 10.0 20.0 8.0 15.0 Years in Place Years in Place 6.0 5.0 5.0 10.0 9.5 10.0 3.5 4.0 7.0 5.0 2.0 5.0 2.0 1.0 1.0 1.0 0.2 0.5 0.0 0.0 I A B M F N P Avg. C E J H G O L Avg.

  22. Key Idea #4: Experience Makes a Difference • Leverage Staff Experience • Staff the CI Team Accordingly • Outsource CI Strategically

  23. Typical Experience Levels of CI Professionals On average, professionals in the CI field have 5.6 years of CI experience. 12 10 10 10 10 10 8 Experience (in years) 6 5.6 5 5 5 5 5 4 4 3 3 2 2 2 0 M B C F N E G I L P A D H O Average

  24. Typical Experience Levels of CI New Hires 12 10 8 6 4 2 0 A typical new hire in the CI field has 3.7 years of experience. 10 Experience (in years) 5 5 5 5 5 3.7 3 3 3 3 3 2.5 1.5 1 0 D F C A G I J L N B E H O P M Average

  25. Traits of Successful CI Analysts 81% 81% 63% 63% 60% 56% 56% 31% 6% 6% 6% 6% 100% 0% 20% 40% 60% 80% Communication and analytical skills rank tops among traits of successful CI employees, according to survey results. Communication skills Strong analytical thinking Strong intuition Data oriented Strategy oriented Innovative High ethical standards Persistence Leadership Dedication Market research experience Inquisitive Percentage of Companies

  26. Average Number of FTEs in CI 7 6 6 5 5 5 5 4 4 3 3 3 2.7 3 2 1.3 1 1 1 1 0.5 1 0 0 I B N A F H G J L M C O E P D Average Because CI groups outsource a great deal of work, they run their departments with a relatively low number of FTEs. Full-Time Equivalents (FTEs)

  27. Percentage of Companies that Outsource Data Analysis Three-quarters of survey participants prefer to conduct their competitive intelligence analysis in-house as opposed to using a third-party. % of companies conducting data analysis in-house % of companies that outsource data analysis 25% 75%

  28. Voice of CI – The Value of CI “Obviously, the focus on competitors is a unique purview of CI. CI has the greatest potential to see where competitors are going.” - Interviewed Director of Competitive Intelligence

  29. Four Tenets of CI Set Your Goals Stay On The Ball Get Top-Level Support/Buy-in Communicate Successes

  30. Thank You! 4711 Hope Valley Rd, Suite 205 Durham, NC 27707 Tel: (919) 433-0214 Fax: (919) 433-0220 Email: elio_evangelista@cuttingedgeinfo.com

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