Tuesday, June 22, 2010

Early warning for your competitive intelligence

I just attended a presentation sponsored by Frost & Sullivan that discussed the importance of creating an "Early Warning" system for companies so that they can effectively manage and prepare for possible events. While most of the presentation was pretty academic and vague there was one topic and slide that left a mark.

Here we go...

The graph, shown above, illustrates a valid concept. It was part of a piece shared by Ken Sawka of the firm Outward Insights. Essentially the concept states that the closer one gets to a "decision threshold", the less flexible his or her options are.

What does that mean?

He gave the following example to illuminate the point. Let's say you are a weatherman. If you receive intelligence that indicates that there will be rain in three days you can adequate prepare for the coming weather. However, if you receive that news as you are leaving for the office, you probably couldn't even of had time to grab an umbrella. Your options are limited. Point made?


What does that mean, specifically, for your business?

It is best to be able to take a longer term perspective of the threats and opportunities that surround you. By doing this and setting up potential contingency plans you can be adequately prepared should those anticipated events come to pass. It's this type of planning that could of helped....I don't know....British Petroleum.

Threats or opportunities can come in the form of many things. Deregulation, competition, technological changes, supply chain, or larger economic events are all examples of things that can drastically change your competitive environment. And the closer you get to these anticipated events the less able you are to deal with them.

So be a good boy scout, be prepared, and stay on top of your market.

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