Defining Your Intelligence Requirements

Transcription

1 Defining Your Intelligence Requirements Using The KIT Needs Identification Process Presented at the: SLA Annual Conference CI Division s 1st Conference Toronto, Canada June 6, 2005 Presented by: Jan P. Herring Herring & Associates Hartford, Connecticut

2 Session Agenda Introduction & Tutorial Identifying the User s Intelligence Needs Defining the Intelligence Requirements Preparing an Action Plan to Satisfy Those Intelligence Needs & Requirements

3 The Concept and Its Business Application What is intelligence and, how do you use it?

4 Intelligence Definitions Intelligence: The System: Is Knowledge and foreknowledge of the world around us the prelude to management decision and action. The organizational process by which information is systematically collected, analyzed, and disseminated as intelligence to users who can act on it.

5 Building the Knowledge Base Analyzed Intelligence Human-Source Intelligence Publicly Available & Published Information

6 Comprehensive Coverage of the Competitive Environment Threats to the Corporation Political, Economic, and Social Forces Competitor Capabilities, Plans, and Intentions Business Intelligence System Markets and Customers Industry Structure and Trends Technology Development and Sources

7 BI Systems Operations Decisionmakers & Other Users Planning & Direction INTELLIGENCE CYCLE Information Services & Processing Dissemination Analysis & Production Intelligence Collection & Reporting

8 Business Intelligence Uses Early Warning -Business opportunities -Current and future threats Strategic Decisionmaking & Plans -Alliance & Acquisitions -Major capital expenditures -New businesses, markets and technology Competitive Strategies & Operations -Strategies directed at specific competitors -Technology sourcing for product development -Supporting marketing, sales, and manufacturing Counterintelligence & Security -Knowing what the competitors know about us - Protecting our information & intellectual property

9 Key Intelligence Topic Identifying the User s Intelligence Needs... Is the Key to Producing Actionable Intelligence!

10 Key Intelligence Topics An Expression of Management s Intelligence Needs Early Warning, of both threats and opportunities! Strategic and Operational decisions, where competitive factors and forces are major determinates in the outcome Knowing the competition and, anticipating their moves Understanding fully the competitive situation the company currently faces and, will most likely face in the future Key Intelligence Topics provide purpose and focus that link managements intelligence needs to resources and activities throughout the company capable of collecting and producing the necessary intelligence

11 Senior Management s Key Intelligence Topics Strategic Decisions and Issues Future of mobile satellite communications China entry strategy selecting the right partner Early Warning Topics The development of disruptive technologies Competitor efforts to forge alliances with our customers Key Players/Competitors/Customers/Others Creating a coordinated competitive strategy Competitors efforts to acquire our technology

12 The Role of Key Intelligence Topics Critical First Step in Intelligence Process: Identifying User s Intelligence Needs Provide Focus and Purpose to the Effort Engages Users in Intelligence Process as: -Collectors and reporters -Analysts and forecasters -Provider of feedback Becomes an On-going Process

13 Identifying Users Needs Pro-Active Mode: Key Intelligence Topics KIT Process Well Developed & Proven Approach Regular Meetings with Principal Users Help them identify and define needs Feed back mechanism for past/ongoing work Coordinates user needs and related activities The Benefits Permits planning and focused operations Actively involves management/users in process Guarantees a user for the intelligence produced

14 Types of KITs Management Issues and Decisions -Formulation & implementation of strategic plans -Capital expenditures affecting competitive positions -Strategic alliances, acquisitions and divestiture Early Warning Topics -Opportunities that company recognizes first -Threats, including new/emerging competitors -Significant changes in industry, government, technology Key Players: Competitors, Customers, Others -Greater understanding of their capabilities & intentions -Insight and foresight regarding their actions -Monitoring their activities on an ongoing basis

15 KIT Protocol Business Decisions and Strategic/Tactical Topics 1. What decisions and/or actions will you be facing in the next months, where BI/CI could make a significant difference? 2. How will you use that BI/CI? 3. When will it be needed? Early Warning Topics (Begin by identifying/discussing a past surprise in your industry.) 1. Identify several topics that you do not want to be surprised by: new competitors, technology introductions, alliances & acquisitions, regulatory changes, etc. Key Players in Our Marketplace: Competitors, Customers, Suppliers 1. Identify those players you believe company needs to better understand. 2. What specifically do we need to know?

16 Some Management KITs What production process will the competition use in their new plant? How is competition likely to respond to our new product? How will the government change the regulatory regime we now operate under? Determine the competitive position of our new technology. What strategic alliances are our competitors seeking? Why?

17 Creating KIT Action Plans Defining Requestor s Intelligence Requirements Planning to Produce Actionable Intelligence!

18 Managing the Intelligence Process Senior Management KITs The Intelligence Unit KIT Action Plans Intelligence Reports Intelligence Alerts Collection Operations Collection Guidance Intelligence Assessments and Inputs Intelligence Analysis Teams Analytical Approach and Framework

19 Products of the Intelligence Process Intelligence Assessments Collection Current Intelligence Government Plans to... Intelligence Reports, Newsletters & Early Warning Alerts Competitor Z Strategic Intent International Strategy Strengths Weaknesses Analysis Chairman Competitor Co. Likely Actions: Past Decisions Personality Assessments

20 KIT Action Plan Statement Defining KIT Topic/Issue And, implications for your company Key Elements, Describing Current and Future KIT Situation Facts and fact-based statements of current conditions Trends and other future-oriented developments Descriptions of likely future situations Key Intelligence Questions and Actions Provides basis for collection plans Creates context for analytical work Identifies necessary external operations Planned results and types of products Management-team responsibilities

21 Key Intelligence Questions Answers Provide Intelligence to Address KITs Key Intelligence Questions (KIQ) Lead to Relevant Actions BI/CI that can be acquired or collected Identifies answers that MUST be analytically derived - Future actions, developments, etc. - Information that is legally prohibited Professional Intelligence Operations Usually Do Both Simultaneously - - Collect & Analyze Key Intelligence Questions are used by BI/CI professionals to determine which collection and/or analysis techniques should be used to produce the required intelligence

22 BI/CI Intelligence Activities Type of Activity Intelligence Function Application Literature Search On-Line Research Quarterbacking Conferences Field Collection - Human - Photography - Emissions Product Evaluation Competitive Benchmarking Competitor Assessments - Competitor Analysis - Competitor Response - R&D Programs - Alliances & Acquisitions Intelligence Estimates - Competitor Assessments and Forecast - Industry Trends & Structure Collection/Scanning Scanning/Search Focused Search/Scouting - Proactive Search - Targeted/Measurements - Focused Search/Collection Investigative Research Comparative Research - Capability/Strategy/Intent - Threat Assessment - Future Plans and Strategy - Strategy and Threat Assessment - Assessing Future Threats - Future Threats and Opportunities Collection & Analysis Warning & Analysis R&D, Plans, Strategies - Decisionmaking, Scouting - Analysis, Credibility - Analysis, Verification Performance and Cost Cost and Performance - Strategies and Security - Product Introduction & Timing - Long-Range Plans and Strategy - Strategies and Acquisitions - Business Plans & Budgets - Long-Range Plans and Strategy

23 Some Management KITs What production process will the competition use in their new plant? How is competition likely to respond to our new product? How will the government change the regulatory regime we now operate under? Determine the competitive position of our new technology. What strategic alliances are our competitors seeking? Why?

24 Some Management KITs What production process will the competition use in their new plant? Becomes: Will our new product be the Industry s lowest cost, highest quality?

25 KIT Action Plan Example Business Decisions/Issues: Will our new product be the Industry s lowest cost, highest quality? Implications for Our Business: If not, the plans for our new manufacturing facility will need revision. Key Elements, Trends and likely Future Events: Product prices becoming major competitive factor All companies using traditional chemical production process Industry marketing shifting to related services & quality R&D programs seeking new, disruptive technologies Government regulators concerned about product integrity Industry Association believes future is in bio-tech Intelligence Requirements and Actions: (See Next Chart)

26 Examples of Key Intelligence Questions KIQ 1: What Manufacturing Process(s) will our competitor use in their new plant? Check zoning office and EPA CI can be collected from equipment and materials providers Also architectural and construction firms KIQ 2: What will their future product cost? Collection plan includes cost-of-goods and competitor estimates of manufacturing costs Use/modify our production-cost model to estimate their cost Use/modify our production-process model to assess their product cost and quality

27 Will Our New Product be the Industry s Lowest Cost, Highest Quality? Focus is Competitor s Production Process: BI/CI Dept. Would Lead Intelligence Requirements and Actions: Regular updates of aerial photography - Analytical Model: both process and cost - Secondary Research, including Zoning Commission Human Collection: Suppliers & Construction firms VPs Manufacturing and Operations: Members of CI Team

28 KIT Action Plan Contains Both Analysis & Collection Operations Maximizes Chances of Collecting the Answer Collection coverage is both broad & diverse Good planning increases probability of success Analysis Produces the Complete Answer Places results in user s context Also provides collection guidance And, IF the Answer is Not Collected, Analysis Provides the BEST Estimate

29 KIT Action Plan Worksheet Business Issue/Question: Few succinct sentences defining the nature of the request, including its effect on the firm s competitiveness. To be an intelligence topic external forces must be a key factor. Likely Use and/or Business Application: What use does the requestor have in mind. A business decision? Input to a new business plan or RFP? Describe the most likely use. Collection and/or Acquisition Planning: Cite collection objectives(s) or KIQs. Identify key sources, types of collection operations and any additional costs or possible sensitivities Analysis Planning: Describe analytical objectives and user s context. Identify basic analytical methodologies to be used, including possible additional resources, inside or outside the firm Communicating the Results: Who will be the primary recipient(s)? And, how will results be delivered? 1. 2.

30 References & Additional Reading Key Intelligence Topics: A Process to Identify and Define Intelligence Needs, Jan P. Herring, 1999, Competitive Intelligence Review, 10(2): 4-14 Key Intelligence Topics: A Window on the Corporate Competitive Psyche, David B. Francis and Jan P. Herring, 1999, Competitive Intelligence Review, 10 (4): KITS Revisited: Their Use and Problems, Jan Herring, scip.online, Issue 8, May 2,2002 Identifying Your Company s Real Intelligence Needs Jan Herring, scip.online, Issue 35, July 14, 2003 The Future of Competitive Intelligence, Jan P. Herring, Competitive Intelligence Magazine, Volume 6, No. 2, 2003