Tag Archive for 'Competitive Intelligence'

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Litigation & Competitive Intelligence

Litigation may tell you what the target company doesn’t want you to know.

Here are five things to look for when reviewing a company’s legal entanglements:

  • Is the company the target of large scale mass tort actions?
  • Is the company facing class action claims for faulty products and/or services?
  • Is the company facing lawsuits claiming shoddy or unfair business practices?
  • Have employees sued for wrongful dismissal?
  • Are shareholders claiming the company knew about material facts that depressed their stock price and failed to disclose them?

Ethics Claptrap

In today’s National Post a vague article entitled, Spying doesn’t pay, prattles on about ethics and warns about the weak moral fibre and criminality of competitive intelligence practitioners.

I find it hard to get over pendants who don’t meet a payroll, deal with shareholders, or shifting market forces, who always tell you what you are doing wrong. This inane stuff continues to annoy me — I know it shouldn’t, but for three decades I’ve been hearing the same twaddle. As an example from today’s article:

Perhaps the most surprising finding is that among the troubling incidence of misrepresentation, manipulation, covert surveillance and theft, one of the most common ethical problems in competitive intelligence is the unsolicited discovery of a competitor’s trade secrets.

Theft is a crime, while misrepresentation, manipulation, and covert surveillance may, or may not comprise some part of a crime. Of course no details provided. He just wants us to believe this is SOP in business today. The unsolicited discovery of a competitor’s trade secrets is what Competitive Intelligence is about and he wants to equate that with criminal behaviour.

And he continues in this vein:

Managers in our study repeatedly recounted incidents where sensitive competitor information had been disclosed by customers, suppliers, or disgruntled former employees of their competitors. Sometimes these were not sent purposefully, but were accidentally conveyed by e-mail, or as one corporate lawyer put it, “the mysterious fax problem.” Sometimes, simple eavesdropping of one’s competitors at a trade show or on the plane can reap precious inside information. Quite simply, information insecurity is widespread, and there is no lack of competitors that might be tempted to take advantage.

If somebody sends me useful competitive intel, then I must read it to determine what is to be done about it. If it is obviously stolen, then I must determine my legal position in relationship to possession of this data. If the data was clearly stolen I will not become a receiver of stolen property. The use of the word “eavesdropping” has the connotation that this is criminal or improper. Quite to the contrary, overhearing someone talking about something important to you is not a crime or improper.  If receiving the data is not a crime or tort, then it is mine — finders keepers.

And yet it continues:

Use of competitor information known to be confidential can breach trade secret law and goes against the golden rule of “do unto others as they would do unto you.”

If the competitor releases the information in a public venue, then I would like this author to tell us what law has been breached by the party who receives information. If the competitor release the data in public it is no longer confidential. It doesn’t matter how or why he released the data.

And now we get to the objective of this claptrap:

Perhaps even more of a concern for companies is the revelation that a lack of attention to the ethics of competitive intelligence gathering can result in employees assuming they have tacit approval for an anything goes approach to competitors. This can instil a culture of moral laxity that incrementally takes hold in other practices, roles and functions within the organization. Bottom line: lack of attention to industrial espionage can have repercussions for the entire ethical culture of the organization.

Let me translate: you won’t know the difference between criminal industrial espionage and competitive intelligence unless you read my book (Ethical Challenges in Competitive Intelligence) and hire me at outrageous rates to waste your time on this twaddle, after all, you business people aren’t very smart or moral.

Napoleon on Project Management

My work as a Competitive Intelligence (CI) Researcher or Investigator has evolved from fulfilling information requirements of established projects, to managing projects within projects. I expect this trend to continue over the next decade as the complexity of  information and analysis requirements increase.

As the concepts of Project Management are imposed on Investigations, CI, forecasting and planning processes, study of this area of business skill will not only become absolutely necessary for all managers, but also for people like me.

[asa link]078521285X[/asa] offers an excellent look at the prime components of success and failure as a project manager through a short and very readable review of Napoleon’s greatest achievements and the origins of his ruination. This is the best primer on the subject that I have read.

Twitter and Maritime Disasters

Loose Lips Sink Competitors

Competisaurus has just let the world know my secret techniques for predicting maritime disasters. Twitter Search is like sitting in a dockside bar listening to enemy sailors plot some dastardly attack. If you understand that competitive intelligence isn’t a guessing game like Battleship, then searching Twitter might help your marketing salvo sink a competitor’s Battleship. Now keep this to yourself, let it be our little secret.

The Twitter Threat

On the other hand, landlubbers at US Army intelligence wrote a report on the Twitter-threat. The report postulates that Twitter could be used for coordinating terrorist attacks. The report supposedly states, “Twitter was recently used as a counter-surveillance, command and control, and movement tool by activists at the Republican National Convention,”. “The activists would Tweet each other and their Twitter pages to add information on what was happening with Law Enforcement near real time.”

Must we tweet this Twitter-threat stuff seriously?

An Intellegence Revolution

I ‘m sometimes referred to dismissively as the Investigator who searches databases, or the guy who gets other people to do research and just manages the report writing (they can’t grasp the concept of a Project Manager). These people dinosaurs just don’t understand that the conduct of knowledge work has changed and that it will continue to change. Industrial technology brought about the Industrial Revolution, now information  technology is bringing about an Intelligence Revolution.

For example, the  news media acknowledged that Wikipedia was the clearing house for information about the Virginia Tech shooting. Over 8000 amendments to the Wikipedia article were posted in 2 weeks. A former director of the National Security Agency told  congress  in 2002, “Al-Qaida did not need to develop a telecommunication system. All it had to do was harvest the products of a three trillion dollar a year telecommunications industry; an industry that had made communications signals varied, global, instantaneous, complex, and encrypted.”

Open sources, open systems, and advanced telecommunications technology are changing how any form of intelligence collection and reporting is done. These developments have also changed how we have to look at the Intelligence Cycle. The decision-makers and intelligence professionals must now come together within the same space and time to focus on the target in a collaborative model using easily configurable open systems. ( An open system, in management science, is a system that is capable of self-maintenance on the basis of throughput of resources from the environment and usually operated on  a computer system that provides a  combination of interoperability, portability, and open software standards.)  In effect, contributors, analysts, and end-users must employ every tool available simultaneously. There is no time for the traditional Intelligence Cycle to function. Clark’s [asa link]1933116935[/asa] and  the “fusion cells” in Iraq may offer models for this more focused, collaborative, and time-compressed intelligence process.

This presents management difficulties associated with the resistance to change, training, organisational structure, the introduction of new technology, and outsourcing. Contractors will collect and fact-check data before entering it into an open system for further processing. Portions of intelligence projects will be managed by outside contractors who compile data from many sources and then feed the results into the open system. Contractors will create chronologies, social network maps, link diagrams, and databases, all of which will be available through an open system. Everybody involved with collection will have some contact with the end user or project manager.

These changes are starting to happen in the public sector. If you do competitive intelligence or complex investigations in the private sector, then you need to start changing your work processes or be left behind by your competitors.  Adapt, or become a fossil.

From Competitive Intelligence to Counter Intelligence

I see a lot of silly security measures against the most improbable risk scenarios. Yet the simplest attacks succeed over and over again. We have to do more to defend against these simple, direct, and constantly repeated attacks.

The following books illustrate that mundane attacks, which so often succeed, represent an enormous drain on our economy. Understanding why these attacks result in large losses is the first step in preventing them. To work both sides of the street, the Competitive Intelligence professional should understand these attacks. The Competitive Intelligence professional will understand the risk better than anybody and should educate his colleagues about  the risks and solutions. The Competitive Intelligence professional will also be positioned to exploit the opposition’s failings where legally and ethically permitted.

Confessions of a Corporate Spy

A former National Security Agency analyst who is now an expert on corporate espionage offered chilling accounts yesterday of his easy penetration into a variety of U.S. companies. In one case, in just a few hours he was able to make off with product plans and specifications worth billions of dollars.

“Never measure security budgets by IT,” said Winkler, author of [asa link]0764584685[/asa].

Other excellent books in this area are:

[asa link]1591096227[/asa]

and  [asa link]0595301290[/asa].

Napoleon said, “The art of war does not require complicated maneuvers; the simplest are the best, and common sense is fundamental. From which one might wonder how it is generals make blunders; it is because they try to be clever.”

Applying Napoleon’s maxim on simplicity to protecting critical data throughout your organization would go a long way to securing your company’s most precious asset.

Competitive Intelligence Reveals Security Flaw

More than 100,000 student records were accidentally made available online by The Princeton Review, an educational support services provider. The discovery was exposed by a competitor as it conducted competitive intelligence research.

The competing company alerted the New York Times to the problem rather than The Princeton Review. A bit of “Black PR” makes the competitive arena more interesting.

Competitive Intelligence and Multitasking

I often analyse job ads when looking at a target company and one type of ad raises a red flag indicating poor management.

Whenever I see an employment ad for a person who can multitask, I know the poor soul who gets the job will have an inept and incompetent boss — a boss who does not have a broad view of his firm’s operational requirements and goals. Multitasking might be fine for computer systems, but it is a stupid concept to apply to people.

This manager does not see enough of his operation to understand what efforts need coordinating in harmony with resources at his disposal. Without a broad overview, he cannot hope to prioritize  and redirect his resources according to the constraints that commitments of his resources place on operations. He just wants people to multitask!

This manager, operating with blinders on, will never identify critical resources and prioritize the rapid redeployment of key people. He will not function well in an environment where resources must be shared. He will not enjoy the success that truly maximizing the use of his resources would bring. He will just vainly look for another poor soul who can multitask better.

When I see this type of ad, I know that I have found a weakness in the opposition’s organisation.

Competitive Intelligence Doctrine & Diplomacy

Competitive Intelligence is more than research skills. It is communication and diplomacy. It is about building mass support for what must be done.  If you read [asa link]0060517123[/asa] from the perspective of selling an approaching disruptive reality, then you will enhance your ability to identify those who will accept your bad news and support it.

Competitive Intelligence is also about project management. One must understand what military doctrine calls Economy of Force and Concentration of Force. In Competitive Intelligence projects, your reserves are the time buffers added to non-critical tasks to prevent impeding the critical work without adding waste. [asa link]0884271536[/asa] represents a good primer to critical chain project management methodology. This methodology is particularly applicable to Competitive Intelligence projects.

Corporate Filing Searches on the British Islands

Competitive Intelligence, Investigations, & Due Diligence

Starting a competitive intelligence research project, an investigation, or due diligence research usually entails a detailed look at the corporate filings, share structure, and accounts of the target or subject company.

Great Britain

On the island of Great Britain, there are two separate registries, one for England and Wales, and another for Scotland. Both of these are operated by Companies House. The accounts and filings for England, Wales, Scotland and Northern Ireland take the same format.

Ireland

On the island of Ireland, the Northern Ireland Department of Enterprise, Trade and Investment of the Northern Ireland Government, (DETINI) houses the corporate filings and accounts. Corporate filings in the Republic of Ireland may be obtained online from the Companies Registration Office.

Channel Islands

On the Channel Islands of Jersey and Guernsey the corporate filings are handled at the Jersey Financial Services Commission and the Guernsey Registry.  Jersey and Guernsey are tax havens, and companies incorporated there do not normally file accounts.

Isle of Man

The Isle of Man is a tax haven, and companies incorporated there do not normally file accounts. The Companies Registry holds corporate filings, and is part of the Financial Supervision Commission. Continue reading ‘Corporate Filing Searches on the British Islands’

Social Network Mapper

A good example is the NNDB Network Mapper.  The NNDB Network Mapper contains relationship data for over 32,000 individuals and organizations and allows you to view their connections with a high degree of granularity.

Using visual tools like NNDB will make competitive intelligence and  investigations easier to manage as this type of software becomes more refined and common.

Finding the Franchise Owner

Franchises identify themselves in the marketplace by using a common name and trademark. Each user of the name purchases a franchise which allows the franchisee the right to use the name. This is where the fun begins.

The franchisee will be a company or partnership with rights to use the name. In Canada, the right to use the name will normally be filed as a Business Name Registration. This allows a person, company, or partnership to operate under a name other than his or its proper name.

Now imagine you have a franchise at 123 Main Street in some Ontario town or city. How do you distinguish it from all the other franchises using the same business name?

In Ontario, OnCorp will allow you to view a list of all the business name registrations along with the recorded addresses.

A mouse click in the check-box next to the registration with the correct address will get you the Business Name Registration, and that will tell you the name of the company or partnership that owns that franchise location.

Ruthless Numerical Evaluation of Web Data Sources

As I surf,  Alexa Sparky provides each site’s traffic rank and a historical chart of traffic in the bottom right-hand corner. This is useful for evaluating the reliability of the data on the site. This tool helps evaluate sources without being influenced by elaborate Web site designs.

Of course Alexa Sparky is far from perfect, it does not provide a full ranking, but it can help you identify better content. For instance, a site that is ranked in the mid-six-figure range has a large following. A site like Danger Room with a mid-three-figure ranking has an enormous following, larger that many newspapers and newsstand magazines.

French Competitive Intelligence Club

I first noticed this on the SCIP news site.

Competitive Intelligence Club Spreads its Wings
June 30, 2008

Initially a network of competitive intelligence specialists working in France’s aeronautics industry, the Commission pour l’Information en Entreprises (ClpE) gradually expanding its remit to new areas like lobbying, security and crisis management. Bolted on to the Association Aeronautique et Astronautique de France (3AF), CIpE boasts a membership of 80 officials in charge of business intelligence in around 40 big French companies and organizations.

Incompetence and Non-compliance to the Rescue

An interesting  study that found that 87% of data breaches are the result of incompetence and carelessness.

Another study shows that a large disconnect between the executives tasked with protecting customer data and marketing departments, which use the data for advertising purposes or share it with third parties.

a third of marketing execs said they don’t place any limits on the data they share with third parties, such as e-mail marketing agencies or online advertisers. By contrast, 75% of privacy officers believe that their companies limit the sharing of customer data.

These findings are a good reminder that asking questions will yield useful data that they shouldn’t divulge. It’s all in how you ask the question.