The State of Competitive Intelligence within. New Zealand Private and Public Sector Organisations, страница 39

The results from this analysis indicates that the main processes and systems used to remain competitive was the use of rumours and personal contacts, Figure 14.1 has been created to provide rankings on  each of the above elements based on importance.  This highlights the number of respondents who have indicated that the value of the element was very important or important. 

Figure 14.1: Processes & Systems used to remain competitive

The results of the survey suggest that the principal system used to gain competitive information is by the use of the rumours and personal contacts element (88%), followed by market research (76%).  It should also be noted, that many of the survey respondents conducted their market research through their work and social networks.  Integrated competitive intelligence systems had the lowest perceived value.

Again the results from this research are very similar to Trengrove and Vryenhoek (1997) study.  Their survey identified that the use of rumours and personal contacts element was the highest perceived value, followed by strategic reviews.  Integrated competitive intelligence systems also had the lowest perceived value (56%).

Key findings to the Competitive Risk Factors

The research indicates the following key findings:

ƒ 88% of the respondents believed that rumours and personal contacts (i.e. work and social networks) played an important element in the process used to remain competitive, followed by the use of market research (76%) and strategic reviews (74%). Of which, the surveyed respondents confirmed the use of their work and social networks to complete market research and/or strategic reviews.

ƒ Almost all of the respondents (97%) believed that they are in competitive markets, a similar percentage (94%) believed that these markets would become more competitive over the next three years.  The largest increase of risk was in the Finance, Insurance and Real Estate industries and ICT & Technology companies.

ƒ The highest rating per risk was the existing or potential competitor (47%) which was similar to the 1997 study.  Interestingly the new technology risk was rated as considerably more manageable at 56% compared to 37%, which suggests the current technology competency with today’s companies/organisations.  While there is currently a worldwide economic recession, 38% believe that there will be an increase in this risk, which is identical to the 1997 study. It is important to note, 38% believed that the new technology risk would become a greater risk in the next three years.   The Academic & Training, Finance, Insurance and Real Estate, Government & Public Administration, ICT and Technology, Manufacturing, Retail Trade and Transportation and Public utilities industries were identified as having a concern with the increase in technology risk over the next three years. 

ƒ 73% of respondents confirmed that their main competitors were located in New Zealand and they had a strong focus on the New Zealand marketplace rather than regional or international markets.  This would suggest that the surveyed companies could have a limited understanding of how the external (international) ‘forces’ are impacting/shaping the New Zealand economy and marketplace (e.g. Baumard three levels of economic intelligence, page 20).  

ƒ While it has been identified that New Zealand markets are competitive and are most likely to become more competitive in the next three years, this would suggest that monitoring competition would be a high priority.  However, only 56% viewed integrated competitive intelligence systems as important (47%) and very important (9%), 44% believed it was neutral (29%) or not very important (15%).

Content Analysis:

ƒ Content analysis also reinforced the new technology risk and that some of the surveyed companies would need to move to a new technology earlier adopter environment to enable or maintain a competitive edge. It is important to note that this environment is not without it own risks, such as a high cost for establishing and developing these technologies and that they are often unproven.