Barnea on Global CI 2011

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COUNTERPOINTOn Freys Creating a Lean CI Department

By Avner BarneaFounder and Managing DirectorA. B. Projects

One of the most interesting articles in the June 2011 edition of SCIP Insight was: "Creating aLean CI Department in Just 18 months" by Christian Frey, Sika Services AG. This article is aremarkable case study presenting how to set up a successful competitive intelligence (CI)unit in a global corporation, and I have already added it to the syllabus of my CI academiccourse. It is undoubtedly a most valuable way to promote learning from the experience of ourcolleagues. Such articles also give us a look into the decisions affecting the performance ofCI. Nevertheless, it seems to me that some of the issues raised in this article deserve furtherdiscussion.

The article describes the intelligence gathering efforts provided by an outsourcing agencyaccording to the needs and guidance of Sika's CI professionals; "The information is gatheredand formatted externally and stored in an intelligence portal. Data analysis and action planremains in house." Although this is not a unique model for executing CI, I believe we shouldlimit outsourcing responsibilities. I find it hard to believe that an outsourcing agency cangrasp the real needs of the corporation without an in depth understanding of the contributionof internal forces within the corporation. There is a high probability that the outsourcing willmiss critical needs, and its interpretation of the information gathered will not lead to realintelligence. Unless the main KITs (key intelligence topics) are tactical, thus deserve a lowdegree of analysis. If we believe that CI is one of the unique capabilities of a corporationand in my view this is the right perspectiveI see the scope of outsourcing as limited. TheKIT's, sources of information and the information obtained should be kept internally as a

function of the CI capability of the firm.

The article goes on to say, "the internal clients have to pay for the information and, by doingso, more than half of the initial inquiries were viewed as less urgent and less important, andit became possible to focus on the most important projects."

I do not believe the cost of CI servicesversus evaluating the real needs of the businessunitsis a viable selection criterion. If there is a legitimate CI activity, the priority should bebased on the needs and value to the organization while cost considerations should be lowon the list of priorities. Though it is possible to look at this issue as a function oforganizational cultureencouraging everyone in the organization to consider expensesfirstfrom a purely CI perspective, I find it difficult to agree with this orientation.

Another aspect that caught my eye was related to the dissemination process. It is mentioned

August 2011 | Vol. 3 Issue 8 In Collaboration with the Frost & Sullivan Institute


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that "it is a mistake to offer a one size fits all service for your CI clients." Again, I find itdifficult to see how an outsourcing agency will have a deep enough understanding of theneeds by various business units and their executives to customize appropriately as it is notan integral part of the corporations daily life. We have to remember that many needs arediscovered by informal encounters between CI and their internal clients; it is extremelydifficult to implement CI successfully in a large corporation by following the outsourcedscenario.

These days fewer corporations are offering "one size fits all" solutions for their CI clients.The most advanced systems are sending information automatically according to earlydefinitions and requests. In addition, executive assistants are expected to download reportsthat are of particular interest to senior management from the internal CI portal. This iscontrary to the CI responsibility of providing reports prepared in response to specificrequests made by senior executives. Senior management is expected to be aware of thecapabilities of CI and define their own particular intelligence needs. The outcome is that a CI

unit that does not interface with senior management will find it difficult to deliver.

Often, the decision to outsource is financialan effort to reduce expensesespecially earlyin the process of setting up the CI function. This is a legitimate consideration. However, thequestion is not only in the scope of the CI function but also about its future roadmap. Oncethe new CI unit is established, it is advisable to reconsider whether this solution is right forthe long run. It is the responsibility of the CI director and the senior executives to considerhow to build up a solid CI capability internally with minimal support from outside.

This decision could also be related to the use of dedicated IT tools that the CI team mayacquire in order to independently collect data from internal and external sources. Thiscompletes the intelligence cycle through the support of the most advanced CI solutions,

including effective analytical tools, which are already available thus helping CI developmeasured expectations and strong capabilities, which will upgrade its products andreputation internally.

Further, I would like to encourage global organizations to set up CI functions that fulfill thefull intelligence cycle while limiting the use of outsourcing for specific occasions, such asmajor projects which are beyond the scope of their ongoing objectives.

On a final note, especially within global corporations, I would hope to read about thebeneficial relationship between the CI unit at the corporate level and the CI activity with thebusiness units, which is too often a serious challenge.

About the author

Avner Barnea teaches competitive intelligence in the MBA program of the Ono AcademicCollege, Israel. He is a consultant in the field of Competitive Intelligence and BusinessStrategy in Israel and abroad. He held a senior position at the Israeli IntelligenceCommunity. The author has an intensive experience in the integration of CI systems intoIsraeli corporations. He can be reached at: [email protected] .


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executive assistants are expected to download reports that are ofparticular interest to senior management from the internal CI portal.This is contrary to the CI responsibility of providing reports preparedin response to specific requests made by senior executives. Seniormanagement is expected to be aware of the capabilities of CI anddefine their own particular intelligence needs. The outcome is that aCI unit that does not interface with senior management will find itdifficult to deliver.

Often, the decision to outsource is financialan effort to reduceexpensesespecially early in the process of setting up the CIfunction. This is a legitimate consideration. However, the question isnot only in the scope of the CI function but also about its futureroadmap. Once the new CI unit is established, it is advisable toreconsider whether this solution is right for the long run. It is theresponsibility of the CI director and the senior executives to considerhow to build up a solid CI capability internally with minimal support

from outside.

This decision could also be related to the use of dedicated IT toolsthat the CI team may acquire in order to independently collect datafrom internal and external sources. This completes the intelligencecycle through the support of the most advanced CI solutions,including effective analytical tools, which are already available thushelping CI develop measured expectations and strong capabilities,which will upgrade its products and reputation internally.

Further, I would like to encourage global organizations to set up CIfunctions that fulfill the full intelligence cycle while limiting the use ofoutsourcing for specific occasions, such as major projects which arebeyond the scope of their ongoing objectives.

On a final note, especially within global corporations, I would hopeto read about the beneficial relationship between the CI unit at thecorporate level and the CI activity with the business units, which istoo often a serious challenge.

About the author

Avner Barnea teaches competitive intelligence in the MBA programof the Ono Academic College, Israel. He is a consultant in the field

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Barnea on Global CI 2011