Favorite CI Analytic Tools that Deliver Value

Transcription

1 Favorite CI Analytic Tools that Deliver Value SLA Annual Conference July 18, 2012 Michel Bernaiche & Fred Wergeles

2 Agenda Introductions Problem Statement Description of Analytic Tools Case Study Exercise Wrap-Up Key Take-Aways

3 Speaker Backgrounds Michel Bernaiche Currently, Director of Program Development for Aurora WDC, where he directs Aurora's activities related to the design and implementation of strategic, market and competitive intelligence operations. Previously he was the Manager of Competitive Intelligence at Dunkin Brands and created and managed four CI functions in the supermarket and food retail industries. Michel is Chairman of the Board of Directors at Strategic and Competitive Intelligence Professionals, a graduate of the Academy of Competitive Intelligence and a former member of The Conference Board s Council of Competitive Analysis.

4 Speaker Backgrounds Fred Wergeles Founder and Principal of Fred Wergeles & Associates LLC, a consulting practice that specializes in Competitive Intelligence collection & analysis and CI process improvement. He has over 25 years experience in the intelligence field in government, the private sector and academia. Fred is an Adjunct Professor at the University of Hartford, teaching a CI course in their MBA program and an undergrad class in Entrepreneurship. Fred is the Chapter Chair for the Connecticut SCIP Chapter and spent 3 years on the SCIP Board of Directors. He received the SCIP Fellows Award in 2012, for contributions to the profession.

5 Why Analytic Tools? Provide insight and context for the market and competitor information collected Provide the greatest value to your intelligence customers The goal is actionable intelligence driven by forecasts of likely competitor or other market activity How do your company s existing products and services stack up against the competition? What new products and services are being offered to your customers? What impact will emerging technologies, regulatory activity and changing customer needs have on your market?

6 Analytical Tools Going Beyond SWOT Timeline Analysis Display events in a chronological and graphical manner to identify important trends and relationships between competitor business activities Four Corners Analysis Provides a big picture of the strengths and weaknesses of the various players and helps forecast likely competitor actions helps determine if the competitors strategies match up to their capabilities.

7 Case Study Exercise You re the Dunkin CI team. The VP/Product Development and VP/Marketing have come to you asking for insight into future Starbucks and McDonald s moves. The team is skilled in collecting lots of information (primary & secondary) on the competitors and other external market forces, but how should you organize and analyze it to provide the required insight and foresight requested by your VPs?

8 Timeline Analysis Systematic layout of events related to the key question Look for events, trends, patterns, and sequences Cause & Effect Make a list of important events on each competitor, based on the key intelligence questions from your customer List the important events as a chronology Array the events for all competitors on the timeline

9 Timeline Instructions Review material provided to your team/table Look for relevant company activities or significant events that would have a significant impact on the corporation Product introductions Leadership changes Industry or market upheaval Acquisitions, divestitures, alliances, joint ventures

10 McD SBUX Dunkin Timeline

11 McDonald s Product Development

12 Dunkin Product Development

13 SBUX Product Development

14 Marketing Initiatives

15 Healthy/Green/Socially Conscious

16 Timeline Analysis Given the past responses to changes in the market, are there any potential McD s and/or SBUX actions that may emerge over the next 6-18 months? How long will it take the competitors to introduce their new product or marketing campaign? What are the significant events that would be an indicator of future competitor activity? What has the current leadership done in similar circumstances in the past?

17 Porter s Four Corners Model Predictive tool that helps in determining a competitor s course of action. Calls for an understanding of what motivates the competitor. This added dimension of understanding a competitor's internal culture, value system, mindset and assumptions help in determining a much more accurate and realistic reading of a competitor s possible reactions in a given situation. Helps facilitate early warning. Surfaces blindspots, of your company and your rivals.

18 The Four Corners Model Motivations DRIVERS Corporate Culture Financial Goals Leadership Organization Structure Philosophy & Values Actions CURRENT STRATEGY Business Model Competitive Posture Recent Moves Scope (all categories) Strategic Goals Competitor s Future Strategy MGMT. ASSUMPTIONS Beliefs re: rival s goals Company s own S&Ws Cultural traits Organizational Values CAPABILITIES Ability to Svc. Channels Financial Strength Marketing & Sales Skills Patents & Copyrights

19 Developing Competitor Insights: Four Corners Analysis 1. DRIVERS What are competitor s current goals? Is performance meeting their goals? How are its goals likely to change? 2. ASSUMPTIONS What assumptions does the competitor hold about the industry and itself? 3. CURRENT STRATEGY How is the firm competing? Scope. Premise, Basis of Comp. Adv.. 4. RESOURCES & CAPABILITIES What are the competitors key strengths and weaknesses? INSIGHTS What strategy changes will the competitor initiate? How will the competitor respond to our strategic initiatives?

20 Breakout Group Exercise n Develop a Four Corner s Analysis on the competitor your group has been assigned. Motivations DRIVERS Corporate Culture Financial Goals Leadership Organization Structure Actions CURRENT STRATEGY Competitive Posture Recent Moves Scope (all categories) Strategic Goals n We will de-brief our findings afterwards. 1. Is the competitor satisfied with its current position? 2. What moves might it make? 3. Where is it vulnerable? 4. And what might we do that will provoke retaliation? Competitor s Future Strategy MGMT. ASSUMPTIONS Beliefs re: rival s goals Company s own S&Ws Cultural traits Organizational Values CAPABILITIES Ability to Svc. Channels Financial Strength Marketing & Sales Skills Patents & Copyrights

21 4-Corners Template Motivations Actions Competitor s Future Strategy

22 How Four Corners Can Help Insights are combined with other analytical tools & models Indentify key competitive differentiators Support Annual Strategic Planning exercises Uncover blind spots in market assessments Help identify important early warning indicators

23 Key Take-Aways Using timelines can provide a unique perspective on the competitive landscape and insights into possible future actions/responses. Understanding the competition s current strategy is not enough to successfully compete, an understanding of the firm s drivers, motivations and capabilities are needed to determine the future moves and likely actions.

24 Other References Craig Fleischer & Babette Bensoussan Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business Competition Business and Competitive Analysis

25 Contact Information Michel Bernaiche (774) Fred Wergeles (860) Twitter: FredWergeles

26 SLA CID Evaluation Please go online to complete the survey: Evaluation