Setting up your competitive intelligence function. Where should you focus?

With COVID-19 upending the global economy and the principles of competitive rivalry in many industries, competitive intelligence will likely become more and more critical for businesses that want to navigate these times without being left behind.

In the past five years, I have both built and supported clients building and growing their CI/MI functions, and today I want to share what I have learned so far: What are the top factors to focus on when setting up a competitive or market intelligence function?

Be passionate – If you do not have a passion for research, data analysis, data visualization & storytelling, it will be hard to build a strong CI function. While essential, carrying out robust primary and secondary research is not enough. You have to love turning data into actionable insights and finding ways to visualize results that are both eye-catching and that resonate with your audience.

Build it as a centralized function, but with an emphasis on collaboration – While the core areas of competitive intelligence (market intel, competitor intel, product intel) should all be under the same umbrella, collaboration with experts in other teams, especially sales, product, marketing, and strategy is key to deliver game-changing intelligence that firstly, reflects the real needs of the business and, secondly, is based on the best internal expertise available.

Build relationships & raise awareness – The ability (or willingness!) to build relationships at work is a critical element in many different roles. However, when working in competitive intelligence, establishing strong work relationships is not just important, but it's a good predictor of your endeavor's success or failure. Establishing deep connections will help you 1) better understand the needs of your clients, 2) deliver insights and presentations that resonate with them, 3) gather deeper HUMINT.

Identify key intelligence needs – Competitive intelligence exists to serve the needs and priorities of your clients (internal stakeholders or external clients). Whichever project you start, be it a market forecast, a competitive landscape analysis, a series of sales battlecards, or a win/loss program, always remember to gather and understand your stakeholders' key intelligence needs (KIN).

Become an expert! – You want to be seen as a subject-matter expert in the field of CI and in the industry in which your company or client operates. How can you achieve that? It is pretty straightforward: Read, study, research, and publish as much as you can; work on your public speaking skills, and learn to be more assertive: don't be afraid of voicing your disagreement!

Take a data-informed approach – While human intuition might seem to offer a reliable alternative to painstaking fact gathering and analysis, this is a dangerous approach. 'Gut feeling' shouldn't have any place in competitive & market intelligence. On the contrary, always follow a data-informed approach, blending hard data, subject-matter expertise, and structured analytic techniques to reduce bias (e.g., analysis of competing hypotheses).

Learn statistics & data analysis – Data is only valuable if you can translate it into actionable insights; this is why having a good grasp of statistics and data analysis is a prerequisite for building a solid CI function. Depending on the company and industry you work in, you won't necessarily need to become a data scientist, but you should - at a minimum - be comfortable with sampling methods and regression and correlation analysis. You will then not only be able to help your business make data-driven decisions but will also have the ability to rebut dangerous hypotheses and explain why a bunch of data points doesn't make a trend!

Keep learning and think outside of the box – The world isn't a static place: industries change, consumers' preferences shift, competitive landscapes evolve. Similarly, we should continue to 'evolve' our knowledge and mustn't stop learning after graduation. Keep studying, explore innovative new ways of solving problems, and apply this knowledge to your day-to-day competitive intelligence activities.

Do not underestimate the power of data visualization and data storytelling – You might carry out robust research, deep-dive into the data, and being recognized as a subject-matter expert but still be unable to influence your key stakeholders. Persuasion is not an easy task, but influencing your audience becomes easier if you capture your audience's attention with visuals and stories that resonate with them. Start by identifying your audience: who are them? What do they care about? What keeps them awake at night?

Continue by choosing a compelling visual, then declutter and apply essential design principles such as contrast.

Finish by creating a story. Depending on the type of presentation, you might not always be able to strictly follow the Aristotelian rules of storytelling but, using the words of data visualization expert Stephen Few, remember that "numbers have an important story to tell. They rely on you to give them a clear and convincing voice."