dr. d. rouach, eap. using offensive and defensive intelligence to boost your innovation
TRANSCRIPT
Dr. D. ROUACH, EAP.
Using Offensive and Defensive Intelligence
to boost your innovation
Dr. D. ROUACH, EAP.
Summary
Using Offensive and DefensiveIntelligence to boost your Innovation
• Basic concepts linked to Competitive Intelligence
• Best practice examples
• Offensive and Defensive Intelligence : the five types of intelligence attitudes
• The example of L’OREAL
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Dr. D. ROUACH, EAP.
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Basic conceptsBasic concepts
Using Offensive and DefensiveIntelligence to boost your Innovation
Dr. D. ROUACH, EAP.
Competitive Intelligence - DefinitionCompetitive Intelligence - Definition
• Business intelligenceBusiness intelligence is the art of locating, collecting, processing and storing information to be made available to people at all levels of the firm with a view to shaping its future, but also protecting its present against competitive threat.
• It is legal and it respects a code of ethics.
• In other words, business intelligence is the transfer of knowledge from the environment to the organisation with respect to established rules.
Dr. D. ROUACH, EAP.
““Skills and knowledge have Skills and knowledge have become the only source of become the only source of sustainable long-term sustainable long-term competitive advantage”competitive advantage”
Source : Lester Thurow
Competitive Intelligence - DefinitionCompetitive Intelligence - Definition
Dr. D. ROUACH, EAP.
It's not illegal spying or theft of trade secrets.
GoalGoal : to give executives a systematic wayto collect and analyze publicpublic informationabout rivals and use it to make decisionsdecisions.
Competitive Intelligence can be used Competitive Intelligence can be used both tactically and strategically.both tactically and strategically.
Business Week - Oct 28, 1996
What is competitive intelligence ?What is competitive intelligence ?
Dr. D. ROUACH, EAP.
Map of technological needs of a companyMap of technological needs of a company
Basic technological domain of the firm
Zone of admitted technological lag
Zone of non-recognisedtechnological lag
Zone of alliances orcompetences
Zone of non-recognisedcompetition
New technologies fieldSource : Radnor
Dr. D. ROUACH, EAP.
Information flows
Informationflows
Otherintelligence
types...
Information flows
Fundamental& AppliedResearch
Technologicalintelligence
Patents, norms,
industrialprocesses
Articles,publications
Suppliers,sub-contractors
Commercial& MarketingIntelligence
Innovations,products &
services
Law,Finance,Taxation
Economy,Politics
Social,Human
ResourcesBuyer,
distributor
CompetitiveIntelligence
Dr. D. ROUACH, EAP.
Fundamental& appliedResearch
Factories& process
Patents& standards
TechnologicalTechnologicalintelligenceintelligence
Technological: ScanningTechnological: ScanningWhich technologies?Which technologies?
Fields of Technological IntelligenceFields of Technological Intelligence
Dr. D. ROUACH, EAP.
The value chain of informationThe value chain of information
Active
Passive
Technicalintelligence
Technicalwatch
Marketingintelligence
Marketingwatch
Financialintelligence
Financialwatch
Productionintelligence
Productionwatch
Salesintelligence
Saleswatch
R&D Marketing Finance Production Sales
Dr. D. ROUACH, EAP.
Competitive Intelligence is Competitive Intelligence is only only nownow taking hold in the United States. taking hold in the United States.
The GLOBALIZATIONGLOBALIZATION of the economy which requires better intelligence to anticipate THREATSHREATS from abroad and to penetrate overseas markets.
Key Key reasonsreasons ::
The QUICKENINGQUICKENING pace of technologicalCHANGE CHANGE and deregulation is fueling the TRENDTREND.
It's easier than ever to be BLINDSIDEDBLINDSIDED by a competitor who can take the lead with a SINGLE INNOVATIONSINGLE INNOVATION.
Dr. D. ROUACH, EAP.
The cult of Business Intelligence exists. Intelligence professionals form a cast and the Japanese are probably the High Priests of the Business Intelligence community.
It has been estimated that Japanese firms spend over 1.5% of their sales revenue on the world-wide collection and processing of intelligence.
Business Intelligence in JapanBusiness Intelligence in Japan
Dr. D. ROUACH, EAP.
One of Corporate America's biggest secrets is that more and more more and more companies have in-housein-house operations to keep tabs on rivals.
The number of large corporations with Competitive Intelligence Units has tripled has tripled since 1988 to about 10 %.
Business Week - Oct 28, 1996
Competitive IntelligenceCompetitive Intelligence
Dr. D. ROUACH, EAP.
Focus on the broad competitive environment, adding an analytical twist : the anticipationanticipation of a rival's move.
Competitive Intelligence serves as a radarradar screenscreen, spotting new opportunities or helding avertavert disaster.
Business Week - Oct 28, 1996
Competitive Intelligence: a radar screenCompetitive Intelligence: a radar screen
Dr. D. ROUACH, EAP.
Copyright EGIDERIA, janvier 1995
Data Information Intellectualmodel
Analysis Synthesis
y = a.exp(bx+c)
Action
The information analysis cycle The information analysis cycle
Dr. D. ROUACH, EAP.
STEP 1: Build the Foundation
STEP 2: Analyze the Data
STEP 3: Drive DecisionsTheIntelligence
System :Security
Analysis : theArt and the Discipline
Sources :Laying the Foundations...Guidelines and Checklists
"Good intelligence is a general'smost effective engine of war"
Julius Caesar
"Assess opponent's conditions, observe what they do, andyou can find out their plans and measures."
Sun Tzu, The Art of War
SOURCE : Management Centre Europe
The intelligence pyramidThe intelligence pyramid
Dr. D. ROUACH, EAP.
The Intelligence Production ProcessThe Intelligence Production Process
External External SourcesSources
Acquisition of Information andAcquisition of Information andProduction of IntelligenceProduction of Intelligence
Intelligence Intelligence ProductsProducts
• Industry Experts• Consultants• Universities
• Intelligence sources• - Internal (employees)• - External
• News - media• Government• Electronic sources• Published infomation
Source: Rodenberg, May 22, 1998
• Intelligence estimates• Intelligence assessments• Intelligence briefings• Cl forecasts, foresights
• Analytical alerts
• Intelligence reports
• Information searches
• Newsletters• Publications, reports• On-line information
AnalystsAnalysts
IntelligenceIntelligenceCollectorsCollectors
Information ServicesInformation Services
Dr. D. ROUACH, EAP.
Illegality/Immorality
Legality/morality
43
Espionage
1Exploitationof all targetcompany ’sweaknesses
« Classical »activeIntelligence
2Detectionof targetcompany ’sweaknesses
Risksincrease
from 1 to 4
The limits of Business Intelligence and Industrial The limits of Business Intelligence and Industrial EspionageEspionage
Company protected and control of information distribution
Company NOT protected and no control of information distribution
Dr. D. ROUACH, EAP.
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Best practice Best practice examplesexamples
Using Offensive and DefensiveIntelligence to boost your Innovation
Dr. D. ROUACH, EAP.
Intelligence EaglesIntelligence Eagles
MotorolaMicrosoftGeneral ElectricAt & TIBM3MEastman Kodak
IntelCoca-ColaHewlett-PackardMerckFordXerox
Dr. D. ROUACH, EAP.
Ostriches & EaglesOstriches & EaglesFutures Group’s surveyFutures Group’s survey
101 american corporations with annual revenues of more than $ 1 billion
and are seen as « Eagles », the best corporate intelligence users, for the second year.
Source: F.G. 1997
Dr. D. ROUACH, EAP.
KODAKMcDonell Douglas
Corning
AT&T
TexasInstruments
FederalExpress NutraSweet
Motorola
XEROX
Leaders Leaders CompetitiveCompetitiveintelligenceintelligence
Réal M
rJR
Dr. D. ROUACH, EAP.
Canon
NissanMotor
Daiwa
Nomura
Toshiba Mitsubishi
NEC
Toyota
Leaders Leaders CompetitiveCompetitiveintelligenceintelligence
Dr. D. ROUACH, EAP.
Source: L. Kahaner - Competitive Intelligence - Simon & Schuster - 1996
Corning has one of the most advanced competitive intelligence programs around.
They excel in two areas: First, they have a centralised database with local control. Each piece of information on the Business Information Exchange Network remains the property of the person who contributed it although anyone has access to it. The owner can do what he wants with it, including transferring ownership to someone else if he doesn’t need it anymore.
The case of CorningThe case of Corning
Dr. D. ROUACH, EAP.
Source: L. Kahaner - Competitive Intelligence - Simon & Schuster - 1996
Corning does superior work in tracking competitors who don ’t seem to be competitors.
Corning ’s core business is glassmaking, and it would make sense that they follow the activities of other glassmakers. However, they also track chemical companies who are trying to make glass-like materials that might turn out competitive products.
The case of CorningThe case of Corning
Dr. D. ROUACH, EAP.
Source: L. Kahaner - Competitive Intelligence - Simon & Schuster - 1996
Corning has a large investment in glassmaking furnaces, which are expensive to build and maintain.
Chemical companies for years have been attempting to produce glass without furnaces and undercut Corning’s investment.
Corning must know everything they can about these potential competitors before they become a real threat. »
The case of CorningThe case of Corning
Dr. D. ROUACH, EAP.
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Offensive and Offensive and defensive intelligence defensive intelligence
The five types of The five types of intelligence attitudesintelligence attitudes
Using Offensive and DefensiveIntelligence to boost your Innovation
Dr. D. ROUACH, EAP.
•Violence•Blackmail•Dismissal•Manipulation•Approach•Theft•Phone taping
•Thefts•Counterfeiting•Reverse engineering• Software piracy•Industrial spying
• Mafia drift • Disinformation and
counter-information•Influencial and lobbying •operations
IDEE
The threats of the companyThe threats of the company
Dr. D. ROUACH, EAP.
Consequences of strategic information leaks Consequences of strategic information leaks
Source : ENID, Ed. Dumesnil
Loss of market shares
Loss of brand image
Decrease in margins
Decrease in Employees ’ motivation
Loss of key clients
Loss of advantage regarding competition
info
info
infoinfo
infoinfoinfo
infoinfo
infoinfo
Dr. D. ROUACH, EAP.
Active / Reactive IntelligenceActive / Reactive Intelligence
Intelligence is mainly active : it is related to specific objectives which are defined in advance.
Intelligence must also be reactive : it must identify and analyse the « weak signals » that are the alerts of a coming change.
It is therefore necessary to use an active/offensive intelligence which combines permanent surveillance and chase initiatives.
Defence radar
Hunting radar
Dr. D. ROUACH, EAP.
We can compare intelligence to
the image of the helicopter
that enables to have both
a panoramic vision
and to land vertically
on specific signals
Active / Reactive IntelligenceActive / Reactive Intelligence
Dr. D. ROUACH, EAP.
The five types of intelligence attitudesThe five types of intelligence attitudes
01 2 3 4 5
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2
3
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5
Amateurs Professionals Expertise
Inactive
Active
offensive
+
+
+
+
+
« Sleepers »
Reactive intelligence managers
Active intelligence managers
« offensive » intelligence managers
« Warriors »
Dr. D. ROUACH, EAP.
The five types of intelligence attitudesThe five types of intelligence attitudes
Typesof intelligence Spirit Methods and
action modes
Warriors
Offensive
• Economic war spirit• Constant fight against
disinformation• Patent war and copying• Offensive situation
• Sophisticated tools (war rooms)
• Methods vary (establishment of an ethics code)
• Means illimited or important• Teams of leaders
• Former Secret Services agents
• Detailed data treatment and use of analysts
• Hunt of strategic information
• Economic war spirit• Constant fight against
disinformation• Patent war and copying• Offensive situation
Dr. D. ROUACH, EAP.
The five types of intelligence attitudesThe five types of intelligence attitudes
Typesof intelligence Spirit Methods and
action modes
Active
Sleepers
• Setting up of a competition Observatory
• Limited means• Beginning of an
operational intelligence networking
Reactive• opportunist • Reaction to attacks
• Limited budgets
• No particular action • Blindness and passivity• NIH syndrome
Dr. D. ROUACH, EAP.
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The exampleThe exampleof L’OREALof L’OREAL
Using Offensive and DefensiveIntelligence to boost your Innovation
Dr. D. ROUACH, EAP.
The case of L ’Oréal The case of L ’Oréal
« The Applied Research services at L ’Oréal analyse the competition and collect all the information available on the planer, read the world-wide press, surf on the web, and acquire the innovations developed by their competitors. About one thousand are sent to Clichy every year...
Source : ESS. Mgt., May 98
20 20 people analyse the competitors productspeople analyse the competitors products
Dr. D. ROUACH, EAP.
Competitive Intelligence at L ’Oréal : a spider Competitive Intelligence at L ’Oréal : a spider webweb
Source : Colloque, Palais Bourbon, June 98
Yolaine de Linares (l ’Oréal)
« Intelligence reminds us of a spider web, with formal as well as informal networks which are related to each other.
Intelligence induces a change culture:
• management by project• transversal approach• benchmarking
It needs the creation of new tools capable of serving the company’s strategy (eg.: setting up of data bases targetting hte consumer). »
Dr. D. ROUACH, EAP.
The The CorporateCorporate intelligence intelligence
« Close to the General Management of the Company, the Corporate intelligence must provides the decision makers with information which will enable them to enrich their strategic decisions, to detect opportunities and threats within the company ’s environment, to understand the role of each player, to anticipate possible ruptures, to use new models and grids. This functions is the interface between the internal and the external. »
Source : Colloque, Palais Bourbon, June 98
Yolaine de Linares (l ’Oréal)
Dr. D. ROUACH, EAP.
Intuition - Rationalisation - Process - SpiritIntuition - Rationalisation - Process - Spirit
« Intelligence provides services to our businesses. Its maincharacteristics are: intuition, rationalisation, process, spirit.
Its objective: to help everyone reach excellence in his/herdomain, not only for himself, but also for the company ’soverall objective. »
Source : Colloque, Palais Bourbon, June 98
Yolaine de Linares (l ’Oréal)
Competitive Intelligence at L ’OréalCompetitive Intelligence at L ’Oréal
Dr. D. ROUACH, EAP.
L ’Oréal : a permanent attentionL ’Oréal : a permanent attention
Source : Colloque, Palais Bourbon, June 98
Yolaine de Linares (l ’Oréal)
« Intelligence is conducted by all the operational divisions of the group, both to observe the competition and to detect emerging trends which can sometimes lead to opportunities in terms of product innovation. ”
Dr. D. ROUACH, EAP.
L ’Oréal : a permanent attentionL ’Oréal : a permanent attention
Source : Colloque, Palais Bourbon, June 98
Yolaine de Linares (l ’Oréal)
A company that sells consumer goods must be animated by a permanent attentionpermanent attention regarding its business field, and must benefit from the multiple perceptions and visions as well as from the complementary approaches of all of its people.
For example, we have created, within our R&D, an internal journal that disseminates the astonishment reports and brings new observation comments. This publication is very successful within our company.»
Dr. D. ROUACH, EAP.
Source : Colloque, Palais Bourbon, June 98
« « Think global, Act global Think global, Act global »»
Yolaine de Linares (l ’Oréal)
« It seems very important to us to give intelligence a new dimension. The best environment for Competitive Intelligence is, indeed, the Company as a whole : it must be it must be integrated to its culture and concern all of its peopleintegrated to its culture and concern all of its people.
« Global approach or sectorial vision? There is no choice to make, as Competitive Intelligence has to be practised at two levels:Think global, act global . »
Competitive Intelligence at L ’OréalCompetitive Intelligence at L ’Oréal
Dr. D. ROUACH, EAP.
Source : Colloque, Palais Bourbon, June 98
Yolaine de Linares (l ’Oréal)
« In my group, intelligence has always been practised. I think the problem many big groups can have is the dissemination of information, which is two often assimilated to power.
The sharing of information is a development factor for the company. The real challenge is to demonstrate that information itself does not have value. Value comes from it analysis and exploitation. »
The The information disseminationinformation dissemination
Competitive Intelligence at L ’OréalCompetitive Intelligence at L ’Oréal