You’ve heard it before. It’s not what you know, but rather who you know. As a competitive intelligence professional in a medium-sized firm, I can attest that this adage still holds true. When I began work at Larscom I wasn’t quite sure what the terms “competitive intelligence” actually meant. I had never worked for a manufacturing firm before. My lack of understanding caused me great concern because one of my charters as market research manager is to monitor the competition. As a 1.25-person, brand new department (my boss helps me as time permits) with a limited budget, nonexistent mission statement, and no personal contacts in my industry, I had to get creative—and FAST! After a year and a half I have learned that personal contacts, both inside and outside the organization, are invaluable. Here are my six keys to success for conducting competitive intelligence in a small- or medium-sized company:
Step 1: Create and Use an Intake Form
My department’s most prized customers are our sales representatives and product managers. I was hired, mostly, to keep these hard-working professionals well informed about competitors, industry trends, and events. In order to institutionalize our department’s data collection and dissemination services, we created Larscom’s Competitive Intelligence Hotline—my office telephone number at present! Because our Market Research/CI department was new when I first arrived, I decided it wouldn’t hurt to keep track of these customer requests. Therefore, at the end of the year if necessary I could use the record to justify the department’s existence. After making it through my first year with flying colors, I continue to use my Customer Request Intake Form to monitor the quantity and nature of my colleagues’ queries. I include this information in my monthly status report to my boss. It also enables me to determine patterns in customer needs. Occasionally, I will use this helpful record to determine how, and when, I answered a specific question. I then save time in my search when a similar question arises. I highly recommend you implement this intake process in your CI department.
I USE OUR CUSTOMER REQUEST INTAKE FORM
TO MONITOR THE QUANTITY AND NATURE OF
MY COLLEAGUES’ QUERIES. I INCLUDE THIS
INFORMATION IN MY MONTHLY STATUS REPORT.
Our form has room for four basic information categories:
- Name of Requester
- Date of Request
- Department of Requester
- Description of Information Request
By means of this simple spreadsheet, you can keep track of every request you receive—whether it’s a price for a competing product, or an in-depth analysis of an industry trend. This record will help you see where your time is spent. It will also provide a nice list of accomplishments when it’s time for your performance evaluation at year’s end.
Step 2: Ask for Companywide Help—and Be Specific
The first thing I did when I arrived here at Larscom was to compile a list of our competitors. The second thing I did was send it around asking for help. I was anxious to hear about things like competitor product announcements, prices, mergers, and new strategies, but I neglected to ask for these things. I simply sent out the list to the 20 people in my department (marketing) and asked for “any information” about our competition. The response was slim for many months. I was often asked for details on a competitor that I just could not track down. After feeling much aggravation, I hired a few, affordably priced outside consultants to make up for the personal industry contacts I lacked. After several long months, my fellow marketers began to give me articles, price lists, e-mail with information nuggets, etc.
After even more months, companywide colleagues started to contribute to my files as well. Today, I am well known enough to receive priceless tidbits of information about our competitors from folks who stop me in the hall. But it has been a long, arduous process. I strongly suggest that you send out your list and call for help to everyone at the company—not just members of your department. Explain in detail the type of information you need to make it easy for your fellow workers. I have never offered an incentive in the form of a gift or cash—again due to budget limitations. If you have the money, however, it might speed up your collection success. I’m told this methodology has worked for some fortunate CI managers with deep pockets. If you have a lean budget, however, your personal courtesy, eagerness to help in the future, and simple thank you notes will keep your in-house data channels open.
I AM NOW WELL KNOWN ENOUGH TO RECEIVE
PRICELESS TIDBITS OF INFORMATION ABOUT
OUR COMPETITORS FROM FOLKS WHO STOP ME
IN THE HALL.
Step 3: Start a CI Networking Club
As a new Market Research Manager, one of my selfimposed charters was to quickly learn some creative, effective competitive intelligence techniques. I decided to create a safe environment in which I could do just that. I remembered that a few former colleagues had also taken
competitive intelligence positions with manufacturing companies in the area. I called four people I knew and asked if they would be interested in forming a market research analysts’ supper club. I explained the purpose of the group as I saw it: for research professionals in similar positions to share ideas about business online services, market research databases, analytical tools, CI consultants, conferences, etc.
Proprietary information about our individual company’s activities would not be shared. The point was to learn systems and processes from each other and to offer general moral support. The group has grown to 13 members and is now in its second year of meetings at local, fun restaurants, where we gather once every two months. The information and support I have gleaned from my affiliation with this club has been invaluable. I highly recommend bringing together fellow professionals that you trust and enjoy on a regular basis. The CI rewards are tremendous! queries. I include this information in my monthly status report to my boss. It also enables me to determine patterns in customer needs. Occasionally, I will use this helpful record to determine how, and when, I answered a specific question. I then save time in my search when a similar question arises. I highly recommend you implement this intake process in your CI department.
I USE OUR CUSTOMER REQUEST INTAKE FORM
TO MONITOR THE QUANTITY AND NATURE OF
MY COLLEAGUES’ QUERIES. I INCLUDE THIS
INFORMATION IN MY MONTHLY STATUS REPORT
Our form has room for four basic information categories:
- Name of Requester
- Date of Request
- Department of Requester
- Description of Information Request
By means of this simple spreadsheet, you can keep track of every request you receive—whether it’s a price for a competing product, or an in-depth analysis of an industry trend. This record will help you see where your time is spent. It will also provide a nice list of accomplishments when it’s time for your performance evaluation at year’s end.
Step 2: Ask for Companywide Help—and Be Specific
The first thing I did when I arrived here at Larscom was to compile a list of our competitors. The second thing I did was send it around asking for help. I was anxious to hear about things like competitor product announcements, prices, mergers, and new strategies, but I
neglected to ask for these things. I simply sent out the list to the 20 people in my department (marketing) and asked for “any information” about our competition. The response was slim for many months. I was often asked for details on a competitor that I just could not track down. After feeling much aggravation, I hired a few, affordably priced outside consultants to make up for the personal industry contacts I lacked. After several long months, my fellow marketers began to give me articles, price lists, e-mail with information nuggets, etc.
After even more months, companywide colleagues started to contribute to my files as well. Today, I am well known enough to receive priceless tidbits of information about our competitors from folks who stop me in the hall. But it has been a long, arduous process. I strongly suggest that you send out your list and call for help to everyone at the company—not just members of your department. Explain in detail the type of information you need to make it easy for your fellow workers. I have never offered an incentive in the form of a gift or cash—again due to budget limitations. If you have the money, however, it might speed up your collection success. I’m told this methodology has worked for some fortunate CI managers with deep pockets. If you have a lean budget, however, your personal courtesy, eagerness to help in the future, and simple thank you notes will keep your in-house data channels open
I AM NOW WELL KNOWN ENOUGH TO RECEIVE
PRICELESS TIDBITS OF INFORMATION ABOUT
OUR COMPETITORS FROM FOLKS WHO STOP ME
IN THE HALL.
Step 3: Start a CI Networking Club
As a new Market Research Manager, one of my selfimposed charters was to quickly learn some creative, effective competitive intelligence techniques. I decided to create a safe environment in which I could do just that. I remembered that a few former colleagues had also taken competitive intelligence positions with manufacturing companies in the area. I called four people I knew and asked if they would be interested in forming a market research analysts’ supper club. I explained the purpose of the group as I saw it: for research professionals in similar positions to share ideas about business online services, market research databases, analytical tools, CI consultants, conferences, etc.
Proprietary information about our individual company’s activities would not be shared. The point was to learn systems and processes from each other and to offer general moral support. The group has grown to 13 members and is now in its second year of meetings at local, fun restaurants, where we gather once every two months. The information and support I have gleaned from my affiliation with this club has been invaluable. I highly recommend bringing together fellow professionals that you trust and enjoy on a regular basis. The CI rewards are tremendous!
COMPOSED OF COLLEAGUES FROM DIFFERENT
FIRMS, OUR NETWORKING SUPPER CLUB
ALLOWS US TO LEARN SYSTEMS AND PROCESSES
FROM ONE ANOTHER AND TO OFFER MORAL
SUPPORT.
Step 4: Get to Know Your Sales Force
One of the most enjoyable and well-received projects I completed during my first year as Market Research Manager was a summary sheet/matrix of our top accounts and how our equipment was being used there. This spreadsheet was designed for in-house use only, and was based solely on input from the sales force. Having to rely on people I barely knew—and they didn’t know me from Adam—was challenging, to say the least. First, I had to get a buy-in from the VP of Sales so he wouldn’t feel I was invading his people’s time. Second, I had to ingratiate myself to a sales force of 30 or so reps that were scattered around the country. Because I had never met many of these individuals, I had only my telephone skills and prayers to rely on!
Via e-mail, assorted phone calls, and help from our regional sales managers, I was able to put together the major accounts matrix. It took me longer than I wanted, due to my learning curve (technology and people), but the accounts matrix received a very positive response when it was finally distributed. With the extra time I spent getting to know our sales executives, and inviting them to know me, I developed strong business relationships with many of them.
If your customers include your sales representatives, be sure to interview your vice president of sales. Gather information about each sales representative: his/her territory, family background, years with the company, and major accounts. If I had done this prior to implementing the accounts matrix project, I could have completed it faster. Our sales reps are hard-working people who are constantly in the “trenches”; they are an excellent source of news about competitors, new products, pricing, and the industry in general. Now, these individuals often “gift” me with excellent pieces of data that help me do my job. Larscom’s direct sales force are my office angels!
Step 5: Send Thank-You Notes as Often as Possible
After being in the corporate world for almost two decades, I have learned one very important thing: People like to be acknowledged. While this is true for life in general, it is extremely significant in the working world. As CI professionals, we often must rely on sources other than ourselves for data. Whether you’re hiring a consultant or depending on your colleagues to help fill in the blanks, it is important to recognize people for their contributions. After I completed the accounts matrix I cited above, I sent a handwritten Thank-You note to each and every salesperson who participated. I stayed late at the office one evening to write out the notes. That one simple and inexpensive gesture on my part has gleaned an enormous amount of actionable information from the sales executives. I have also created (thanks to the student intern hired earlier this year) a standard department Thank-You note to give to donators to our company library. Recipients of such correspondence now eagerly donate publications of all kinds, rather than just throwing them away.
HANDWRITTEN THANK-YOU NOTES TO THE
SALESPEOPLE WHO PARTICIPATED IN COMPILING
AN ACCOUNTS SUMMARY MATRIX HELPED TO
CEMENT ONGOING RELATIONSHIPS.
Once you become well known as the company “information guru,” people will inadvertently drop articles on your chair, stop you in the hall to divulge an industry tidbit, and/or e-mail you with some gold nugget of competitor information. Acknowledge these folks as much as possible with a Thank-You note.
Step 6: Keep Your Eyes Open, Stay Focused, and Expect Miracles
As a CI professional, you know that you cannot do it all. Tracking hard to get information can be frustrating and tiresome. I remember desperately needing to get a retail price on a competitor’s unit. After sending out e-mails to the sales force, calling third-party distributors, and even trying the 800-number at the competitor’s office, I had noluck. I decided to let it go and told my client that the
information was not to be had. The very next day, however, an article with that precious price arrived on my terminal via our company’s online news service. What a nice surprise! Working for a medium-sized company is like living in a small village. Association with fellow employees is easy. I have received obscure bits of information from colleagues based in many different departments. Colleagues that hear significant news items commuting to work in the morning often keep me informed. I find that where I least expect it, I receive important information that enables me to better assist a customer.
WORKING FOR A MEDIUM-SIZED COMPANY IS
LIKE LIVING IN A SMALL VILLAGE
A medium-sized company of 250 persons often has the same desire for global leadership as a corporate giant with thousands of employees. With some corporate creativity, a willingness to listen, and a smile, you and your CI department can help your firm realize its strategic vision
About the Author
Amy Berger is the market research manager at Larscom Incorporated, a leading provider of high-speed wide area network (WAN) access equipment. She completed her undergraduate work at the University of California, Berkeley and received a Master’s degree at the Massachusetts Institute of Technology. Ms. Berger is the first market research manager hired at Larscom, and is laying the groundwork for the company’s growing market research department. A SCIP member since May 1996, she can be reached at Larscom Incorporated, 1845 McCandless Drive, Milpitas, CA 95035 USA, tel: 1-408- 941-4111; fax: 1-408-956-0108