The role of competitive intelligence in the course of business process

THE ROLE OF COMPETITIVE INTELLIGENCE IN THE COURSE OF BUSINESS PROCESS

Vaidas Gaidelys

Kaunas University of Technology, Lithuania, Vaidas.Gaidelys@ktu.lt  Abstract

Business being in the process of reorganization frequently experiences a lack of analytic data and managerial intuition. Working out and implementing business process capable of satisfying the needs of the market most completely presupposes a close cooperation and an active support on the part of the highest management strata of business organization. Basic changes in the attitude of management to the structure of business organization and information data basis is a prerequisite for achieving positive results. It is in this case only that competitive analysis and outside information is sure to become the main condition for accurate understanding of the possibilities of competitive intelligence and the risk of investments necessary for achieving the ultimate goal so that business organization after certain reconstruction could gain competitive advantage in the dynamically developing market economy. Some business organizations operating in western countries have implemented a similar model of business organization applicable to concrete kinds of production. The basic principles of this model have been verified and applied for a concrete section of the market, i.e. for evaluating the situation of competitiveness and applying basic economic principles in it. The principles of analysis of competitive intelligence embrace information about the rivalry situation on the market, the potential changes in the demand for different kinds of production, as well as about a comparative scenario in modelling going over from one system to another that would also embrace the analysis of a particular portion of the market. 

Keywords: competitive intelligence, the structure of business organization, competitive analysis, business process.

Introduction

The corporation determined to create department of competitive intelligence inside its structure should answer certain questions and undergo certain stages. It is possible to single out the stages of initial preparation for the process of reorganization that would enable business organization to get ready for the implementation of the system of competitive intelligence inside its structure and a further employment of this system in the course of business process. The stages possible to be singled out are as follows:

•  Collection of basic data about the structure available;

•  Analysis of the basic data collected;

•  Collection of information concerning the expectations and vision of the top managers of business organization and the analysis of this information;

•  Collection and analysis of outside basic information about the current situation and the activities of the competitors;

•  Preparation of a newly constructed model of business organization including or singling out the department responsible for competitive intelligence;

•  Coordination of the expectations of the top managers of business organization and the newly constructed model of business organization;

•  Preparation of the coordinated model of business organization for its implementation and its concrete putting into effect.

There is no single and clear-cut way to be followed in order to completely make use of the advantages of competitive intelligence and to implement it in the structure of business organization. A successful implementation and use of the advantages of competitive intelligence is therefore made possible only after putting into effect the stages enumerated above (Dumciuviene, 2009). Depending on the sphere of business activities the scopes of separate portions of business organization models have changed considerably. The strengthening of competitive struggle on the market has also added to this significantly. If in the year 1980 certain spheres of business were highly profitable this profitability had decreased over half in 1990 (Snieska, 2008). Therefore striving for a successful competition on the market and aiming at a successful survival in the competitive struggle one of effective means is creation of a competitive intelligence department or implementation of competitive intelligence functions by changing, complementing or reorganizing the structure of business organization.

The problem. In conditions of the ever strengthening competition and active globalization of the economy large corporations and individual companies striving to survive in the competitive struggle make use of the various methods available. Still it is but rarely that a corporation manages to make use of the advantages offered by competitive intelligence.

The aim of the article is to establish the potential position