Course 12: Competitive
Intelligence (Part 1 of 2)
Prepared by: Matt H. Evans, CPA, CMA, CFM
This course provides an overview of how
competitive intelligence works, including some of the
techniques used to conduct competitive intelligence.
This course is recommended for 2 hours of
Continuing Professional Education. In order to
receive credit, you will need to pass a multiple-
choice exam which is administered by installing the
exe file version of this short course. The exe file can
be downloaded from www.exinfm.com/training
Note: This course continues with Part 2 – Analytical
models, CI Systems, and more advanced topics.
Excellence in Financial Management
There is a Chinese saying:
Know thy-self, know thy competition, and get it right almost every time.
Know thy-self, not know thy competition, and get it right about half the time.
Not know thy-self, not know thy competition, and get it wrong almost every time.
We now live in a world driven by hyper-competition. Hyper-competition is where too
many businesses are pursuing too little business; i.e. there is not enough demand to go
around for all providers of goods and services. The knowledge base for managing in this
hyper-competitive environment is called Competitive Intelligence. Competitive
Intelligence is a process of giving you insights into what might happen in the near future.
This process requires that we go from data to information to intelligence. Here is a basic
Data => Prices for our products have dropped by 5%
Information => New offshore facilities have lower labor costs
Intelligence => Our key competitor is about to acquire a facility in India that will . . . .
The differences between data, information, and intelligence can be subtle, but very real:
Data => Unconnected pieces of information: Nice to know, but so what!
Information => Increased knowledge derived by understanding the relationships of data:
Interesting, but how does it relate to what I do!