We live and work in the information age. As such, the opportunity to gather knowledge about your company’s competitors and industry as a whole has never been better. This practice — commonly known as ‘competitive intelligence’ — can help you stay more nimble in the marketplace and avoid getting left behind as innovation surges forward.
Before you dive into competitive intelligence, however, it is important to establish a formal policy governing your efforts. (If you have already started, perhaps slow down and integrate a policy going forward). Generally, a competitive intelligence policy should follow four primary principles:
- Be authentic. When gathering information, do not hide behind secret identities or misrepresent your affiliation. For instance, if you sign up to receive marketing e-mails from a competitor, use an official company address and, if asked, state ‘product or service evaluation’ as the reason you are subscribing.
- Respect all formal agreements. In the course of gathering competitive intelligence, you or your employees may establish sources within the industry or even with a specific competitor. Be sure you do not encourage these sources, even inadvertently, to violate any standing confidentiality or non-compete agreements.
- Abide by all intellectual property rights and laws. As you may know, the technicalities of intellectual property law are complex. It can be easy to run afoul of the rules unintentionally. When accessing or studying another company’s products or services, proceed carefully and consult your attorney before putting any lessons learned into practice.
- Monitor consultants closely. When it comes to competitive intelligence, the Achilles’ heel of many companies is not their employees but outside consultants. If you engage third parties for any purpose, be sure they know and abide by your policy.
With the Internet booming and social media thriving, there is a wealth of information available about your competitors. It can help you shape your strategic planning and stay in better touch with your industry. Please contact our firm for assistance in integrating competitive intelligence into your profit enhancement goals.