The “intelligent puzzle” is that managers, according to a recent survey, assess their competitiveness as above average relative to the market, but acknowledge that they lack the CI capability to really compete effectively relative to their needs. In a rapidly changing and increasingly competitive world, they persist with relatively unsophisticated approaches to CI, especially when all levels of management recognize that their CI needs outstrip their CI capability. Most managers think they are doing CI when they listen to rumors, read a few newspapers, talk to their sales staff, and carry out some market research. In a way this is CI, but it is not very good CI, and it is not appropriate to a fast changing, complex, global world. The flood of information created by the Web-based economy means that it is clearly impossible for managers (especially senior and middle managers) to do their own CI effectively; the amount of information is just too great for managers to be able to rely on the use of unsystematic, unsophisticated techniques and sources. If CI processes are really to be effective, then managers need to be able to make better use of a wide range of sources and techniques, and that requires a more systematic approach to the delegation of responsibility for collecting information, storing it in ways that can be accessed, analyzing it, and communicating it to the right people. © 2001 John Wiley & Sons, Inc.

The intelligence process starts with management articulating the need for information that will allow it to make a critical decision. As our case study demonstrates, effective business intelligence results not from luck, but from a systematic process. The intelligence analyst deduces a target's most likely actions or intentions using a hypothesis-based approach. This approach allows the analyst to form and test a theory about the target's actions. Testing a set of hypotheses causes the analysis to identify, plan, and seek out market signals that betray a competitor's actions. By implementing the intelligence plan, the analyst is able to collect the necessary facts to deduce a competitor's actions, allowing his or her company a decisive advantage in the marketplace. © 2001 John Wiley & Sons, Inc.

This article investigates the need and ability of competitive intelligence (CI) departments to become accountable for the work they produce. Synthesis of current literature on CI and advertising effectiveness measures resulted in the creation of a Competitive Intelligence Measurement Model (CIMM), which provides concrete generic measures for determining CI effectiveness. Additionally, the model aids in the calculation of the return on competitive intelligence investment (ROCII). CIMM classifies CI output into two categories: short-term tactical CI output and long-term strategic CI output. The model describes measures needed to determine effectiveness of CI output and explains how to calculate ROCII. © 2001 John Wiley & Sons, Inc.

Mapping distribution channels against a company's defined market segments provides a methodical way of addressing short-term tactical and long-term strategic decisions, and guides the user in the focused use of CI data collection. This mapping technique is called CTM™ or Channels-To-Market™. It is an analytical tool based on the principle that there must be a focus on events occurring at individual market segment and distribution channel intersections, and that those events support business decision-making at tactical and strategic levels throughout and beyond an entire business life cycle. The result is the application of CI data points to business scenarios and actual corporate business decisions. This article is a brief overview discussion concentrated on the application of the CTM™ Map and methodology, and how it makes CI tangible and “actionable” by focusing and linking the organization's CI collection efforts to relevant marketing, sales, strategic planning, and other deliverables that provide direct return on investment (ROI). © 2001 John Wiley & Sons, Inc.

In Japan, the relationship between the government and business has traditionally been strong due to the country's historical and cultural background. The major governmental organizations have played a critical role supporting the nation's CI activities in business and in the industrial/technology arena. Until the 1980s, the government, especially through the Ministry of Economy, Trade, and Culture (METI), directed business to facilitate the country's economic recovery following the devastation of World War II. The government not only coordinates complex issues among companies, but also provides CI support through METI, the Japan External Trade Organization (JETRO), and its embassies. Japan's economic recession and bureaucratic corruption of the 1990s suggest that its economy is now in a transitional period from its postwar industrial success. The national policy may now change focus. It is anticipated that the roles of METI and its affiliates would also have to change. Businesses and citizens are calling for the liquidation of government-affiliated organizations whose roles are no longer relevant or appropriate. In light of this, any CI distributed by those national organizations would be somewhat, or greatly, reduced if such restructuring takes place. However, collaboration between the government and business organizations will continue. As long as Japanese companies maintain their information-intensive culture, there will be support for CI activities regardless of whether it comes from the government or other sources. © 2001 John Wiley & Sons, Inc.

In this article the author discusses a rather recent paradigm to artificial-intelligence-based computing, namely intelligent agents for generating competitive intelligence. The explosion in Internet use and private network development can be viewed as both a blessing and a curse. Companies that can effectively manage available information without suffering from “information overload” are leaders in their industry as they generate competitive intelligence. Those who drown in the information are part of history or will be soon. The article concludes by highlighting a series of business cases exemplifying the benefits of intelligent agents. © 2001 John Wiley & Sons, Inc.