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The Objectives of Competitive Intelligence as a Part of Corporative Development Strategy

Abstract

This paper deals with the issue of the management cycle of Competitive Intelligence. The author describes the process of Competitive Intelligence in Czech corporate management. He concludes that in most cases, the Competitive Intelligence operations are directed by the top management, and the attention of Competitive Intelligence is being paid to Key Intelligence Topics (KIT). The Competitive Intelligence is then focused on the output of strategic analyses, complemented in some cases with a summary (synthesis) of acquired intelligence plus some signal intelligence (SIGINT). The results of the Competitive Intelligence produced in such a way are actually the outputs mostly applicable in operational management and mostly unsuitable for strategic management. However, top managers abroad almost invariably need the data relevant to the future situation since their decisions are of strategic nature. The following section of the paper is devoted to the conceptual solution of Competitive Intelligence, i.e. the Competitive Intelligence objectives linked with the development strategy of the corporation. Here the author arrives at three basic development strategies: a.) the corporation desires status quo, i.e. to keep its market position as it is, b.) the corporation is out to expand, and c.) the corporation intends not only to keep its existing and dominant market position but strives for its long-term dominance to last.

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The Objectives of Competitive Intelligence as a Part of Corporative Development Strategy

Author: Bartes, František
Publisher: Mendel University in Brno
Year: 2014
DOI: 10.11118/actaun201462061243
Source: https://dspace.vut.cz/bitstreams/2576308c-43dc-4524-868f-a26961012304/download
1243
ACTA UNIVERSITATIS AGRICULTURAE ET SILVICULTURAE MENDELIANAE BRUNENSIS
Volume 62 128 Numbe 6, 2014
h p://dx.doi.o g/10.11118/ac aun201462061243
THE OBJECTIVES OF COMPETITIVE
INTELLIGENCE AS A PART OF CORPORATIVE
DEVELOPMENT STRATEGY
F an išek Ba es1
1 Depa men o Economics, Facul y o Business and Managemen , B no Uni e si y o Technology, Kolejní 2906/4,
612 00 B no, Czech Republic
Abs ac
BARTES FRANTIŠEK. 2014. The Objec i es o Compe i i e In elligence as a Pa o Co po a i e
De elopmen S a egy. Ac a Uni e si a is Ag icul u ae e Sil icul u ae Mendelianae B unensis, 62(6): 1243–
1250.
This pape deals wi h he issue o he managemen cycle o Compe i i e In elligence. The au ho
desc ibes he p ocess o Compe i i e In elligence in Czech co po a e managemen . He concludes
ha in mos cases, he Compe i i e In elligence ope a ions a e di ec ed by he op managemen ,
and he a en ion o Compe i i e In elligence is being paid o Key In elligence Topics (KIT).
The Compe i i e In elligence is hen ocused on he ou pu o s a egic analyses, complemen ed
in some cases wi h a summa y (syn hesis) o acqui ed in elligence plus some signal in elligence
(SIGINT). The esul s o he Compe i i e In elligence p oduced in such a way a e ac ually he ou pu s
mos ly applicable in ope a ional managemen and mos ly unsui able o s a egic managemen .
Howe e , op manage s ab oad almos in a iably need he da a ele an o he u u e si ua ion since
hei decisions a e o s a egic na u e. The ollowing sec ion o he pape is de o ed o he concep ual
solu ion o Compe i i e In elligence, i.e. he Compe i i e In elligence objec i es linked wi h
he de elopmen s a egy o he co po a ion. He e he au ho a i es a h ee basic de elopmen
s a egies: a.) he co po a ion desi es s a us quo, i.e. o keep i s ma ke posi ion as i is, b.) he co po a ion
is ou o expand, and c.) he co po a ion in ends no only o keep i s exis ing and dominan ma ke
posi ion bu s i es o i s long- e m dominance o las .
Keywo ds: compe i i e in elligence, in o ma ion cycle, de elopmen s a egies, he objec i es
o compe i i e in elligence, s a egic decision
INTRODUCTION
The op managemen o co po a ions e y o en
fi nds ha he global cha ac e and he mo e and mo e
demanding compe i ion ende s hei de ec ion,
in o ma ion and e alua ion o he da a o ien ed
mos ly o “ he pas ”, in a be e case o “ he p esen ”,
ou da ed and obsole e. The in o ma ion ou pu
o he s a egically impo an compe i o s’ decisions
o “ he u u e” is missing. Only in e y ew cases
when he in o ma ion is success ully deli e ed
o he poin , usually i is ound g oundless
and unsubs an ia ed. In no way a e he p esen
sys ems capable o c ea ing ele an da a o s a egic
decision-making o he op managemen , e en i
such da a a e qui e una oidable o any success ul
decision-making in he p esen , highly demanding
ma ke en i onmen . Fo ins ance, he ou s anding
Ame ican manage Lee Iacocca (Iacocca, No ak,
1992) s a es, ha “… o a co ec decision 95% o ele an
in o ma ion om he b anch a e necessa y. The emaining
5% o missing in o ma ion is, acco ding o him, he isk
o decision-making.”
The impo ance o he quali y da a o he op-
managemen g ows immensely du ing he pe iods
o economic dep ession. Usually, i is he ime when
a pain ul p ocess o emo ing e e y hing ha is
obsole e and ou da ed is unde way. E e ybody
knows, wha will no do o he pe iod o come!
I is a gene ally known ac , ha e e y c isis has
i s lose s, bu many fi ms always p o e o be much
s onge , and ic o ious in he end.
These a e he fi ms ha , on he basis
o co ec ly o ganized in elligence, based hei
1244 F an išek Ba es
new co po a e plans on alue and dis up i e
inno a ions, and co ec compe i i e s a egy
ollowed by a success ul ealiza ion on he ma ke .
F om he abo e i may be concluded ha any op
managemen has o ha e an absolu ely clea
pic u e o he capabili ies, s eng h, po en ial,
plans and he in en ions o he compe i ion.
In such a case E icson and Ro hbe g (2005)
sugges o look o he answe s o he ollowing
ques ions, enabling o fi nd how he gene a ion
o he compe i i e capi al is being p o ided
o a he fi m (1). The ques ions a e he ollowing:¨
1. Do you know all he in o ma ion you need o you
s a egic decisions?
2. Do you know whe e o fi nd ou he in o ma ion necessa y
o you igh decision?
3. A e you able o use he in o ma ion, when you see i ?
In case ha he answe o one o he abo e s a ed
ques ions is nega i e o unsa is ac o y, i is ime
o hink abou he building o he Compe i i e
In elligence b anch in you fi m!
Un o una ely, hese b anches a e (a leas
in he Czech Republic) no p ope ly o ganized,
hei asks a e no p ope ly o mula ed and hey a e
no able o p o ide adequa e da a o he s a egic
decision-making o he op managemen .
The e o e, he aim o his pape is o o mula e
he equi emen s o he da a, in o ma ion
and in elligence capable o secu e he necessa y
in elligence collec ing o quali y decision-
making in he fi m, especially wi h espec
o he de elopmen s a egy.
METHODS
In he cou se o w i ing he ex he ollowing
me hods we e used: obse a ion, analysis, syn hesis,
compa ison, induc ion and deduc ion.
THE SOURCES
F om e iewing he a ailable li e a u e dealing
wi h he wo king me hods and es ablished
p ocedu es o he Compe i i e In elligence
ope a i es (CI) i ollows ha , besides elemen a y
o mula ions delinea ing he basic ac i i ies o
he in elligence p ocess and i s phases, no ime-
honou ed o s anda dized me hodology is
a ailable. (2). See he books o au ho s such as Fuld
(1995), Fuld (2010), Kahane (1997), Liebowi z
(2006), Hall and Bensoussan (2007), and mos
impo an ly he seminal wo k o Ca (2003), gi ing
he s uc u ed analysis o he wo k o 15 leading
Compe i i e In elligence w i e s in he USA. He e
he well- enowned expe s desc ibe he p ocess
o Compe i i e In elligence in e y he e ogeneous
ways, e.g. as a cycle, linea p ocess, ou -poin model,
scien ifi c me hod, o e en as a py amid. The au ho s
use hei indi idual ools and me hods wi hin hei
espec i e models o Compe i i e In elligence o
achie e hei common goal – o ob ain necessa y
in o ma ion.
On he o he hand, he specifi ca ion o he mos
impo an ac i i y o Compe i i e In elligence, i.e.
he ans o ma ion o in o ma ion in o in elligence,
is su p isingly incomple e and oggy. Gene ally, i
is he accoun o a ious ways o ou ines ha CI
ope a i es ha e ound use ul in he cou se o hei
p ac ice and ha hey s ill use now. In mos cases
hey se e o collec u he in o ma ion, ne e
p o iding ha d ac s, see mo e in (Ba es, 2012).
The Czech P ac ice o Compe i i e In elligence
Used in Indus ial Co po a ions
The In o ma ion Acquisi ion Speci i cally In ended
o Ope a i e Managemen
The si ua ion in Compe i i e In elligence
in he Czech Republic, some excep ions g an ed, is
no e y good. A he momen he s anda d p oduc
o Czech CI ac i i ies is he combina ion o ou pu s
collec ed om Business In elligence and s a egic
analysis, and he Compe i i e In elligence i sel
p esen s he so called “summa y” o collec ed pa ial
da a, i.e. a syn hesis. In o he wo ds i is a so o
“signal in elligence” (SIGINT) a bes . (3) See mo e in
Hamme (2002).
Howe e , he end, gene ally obse ed in he
p esen Compe i i e In elligence, es s in he
necessi y o collec and p ocess mo e and mo e
in o ma ion om seconda y sou ces. Consequen ly,
he calls o a highe le el o me hods o collec ing
specifi cally used in Compe i i e In elligence
become mo e and mo e conclusi e. Mo eo e , many
manage s a e no capable o unde s anding, no
o say u ilizing ac i ely, he no ion o in elligence
as such. They do no use in elligence bu only
some addi ional in o ma ion b inging no hing
new o impo an o hei decision-making, only
suppo ing hei con ic ion ha hei decisions
we e and s ill a e co ec , e en i i is no longe ue.
This s a e o aff ai s is usually e ealed oo la e.
The Managemen P ope o Compe i i e
In elligence
Success ul Compe i i e In elligence b anches
ha e o o mula e co po a e needs o in elligence
based on complex sys em managemen .
The p inciple o he p ocess is based on a wo-
way communica ion be ween op managemen
and he Compe i i e In elligence b anch, especially
in he s age o o mula ing eal in elligence needs.
Mo eo e , du ing he p ocess i is necessa y
o sepa a e he needs equi ing in elligence
om hose equi ing in o ma ion easily accessible
om he co po a ion’s own sou ces (Business
In elligence, ma ke ing, p oduc ion and sales
managemen , e c.). Fo his pu pose some so
o semina s and wo kshops o co po a e op
manage s should be o ganized wi h he aim o
cla i y he specifi c in elligence needs o hei
espec i e pos s.
In Compe i i e In elligence hese p ac ical
ques ions a e called Key In elligence Topics (KIT),
The Objec i es o Compe i i e In elligence as a Pa o Co po a i e De elopmen S a egy 1245
as o mula ed fi s by J. He ing (4) (2006), who
di ided he in elligence needs o co po a ion in o
h ee basic ca ego ies:
1. S a egic decisions and ac ions.
2. Topics equi ing ea ly wa ning.
3. P ofi les, cha ac e is ics and desc ip ions o he key
playe s.
These key in elligence opics a e u he specifi ed
in he so called Key In elligence Ques ions (KIQ;
e m in oduced by P esco and Mille in 2001)
ha o mula e he issue o key in elligence opics as
ollows:
“When he ques ions a e defi ned and hei p ope sou ces
a e adjoined o hem hen hey a e ca ego ized in o espec i e
ca ego ies o in elligence opics (KITs)”
He e is he place o inse a well-known saying by
H. M. Schoolman: “Good answe s come ou om good
ques ions, no om eso e ic analyses”.
The well-defi ned equi emen s o co po a e
op managemen a e he bases o o m quali y
p epa a ion and implemen a ion o he di ec ly
ollowing in elligence p ocess, i.e. he whole
in elligence cycle o he co po a ion and
consequen ly he c ea ion o quali y ou pu s o
Compe i i e In elligence enabling he co ec
s a egic decision-making.
O cou se, i has a de imen al eff ec ha hese
well es ablished p ocedu es a e mos ly no used
in Czech Compe i i e In elligence b anches.
A he momen hei usual p ac ice is o o mula e
he key opics only acco ding o he momen a y
needs o op managemen wi h no adequa e concep
o co po a e Compe i i e In elligence.
The Decisi e Impo ance O Compe i i e
In elligence in S a egic Managemen
In he p esen complica ed si ua ion i is necessa y
o he co po a e managemen o sea ch o a ious
al e na i e su i al s a egies wi hin he complex
compe i i e scene, o i is e iden ha only one
and all-inclusi e app oach will no do. I is also
necessa y o ealize ha he c ises wi hin fi ms could
ake on a numbe o diff e en o ms and he e o e
i would infl uence he subsequen solu ions. Each
p oblem connec ed wi h an economic dep ession
e.g. infl a ion, defl a ion, ecession o s agna ion
equi es a change o s a egy o su i al. Fo e e y
co po a ion i is he dep ession ha leads o adical
changes and inno a ions – see mo e in Ba es (1997).
The Impo ance o Inno a ions in Co po a e
S a egy
I is inno a ion ha enables p epa a ions o he
in oduc ion o a be e p oduc , be e cus ome
se ice, a he han compe i ion. I is inno a ion
again ha enables o in oduce a be e o cheape
p oduc ion p ocess han compe i ion. And, fi nally,
i is inno a ion ha aff ec s he quali y o a ma ke
supply and hus helps o achie e s a egic
compe i i e ad an age. I is possible o say hen, ha
inno a ions a e eliable solu ions o e e y business
as shown in he book by K ause (2008).
Howe e , hese inno a ions ha e o be p epa ed
and in oduced in ime, i.e. hey depends
on he imely decision o he op managemen .
The decision is defi ni ely o a s a egic na u e
and he op managemen should ha e decisi e
in elligence enabling he solu ion and ealiza ion
o he co ec compe i i e s a egy and gain
a compe i i e ad an age secu ing he achie emen
o he in ended objec i e. The mo e complex
he inno a ion is (i.e. he highe inno a ion o de
is eached), he less applicable a e he analysis
esul s co e ing mos ly he pas , in he bes case
he p esen si ua ion, o he p ope inno a ion
p ocess. In o he wo ds, new inno a i e me hods
o p oduc s liquida e he old and useless ones.
Bensoussan and Densham (2007) empi ically
show ha he Compe i i e In elligence is one
o he as es de eloping b anches o in e na ional
business. I is p o en by hei esul s aken no only
om de eloped coun ies, bu also om coun ies
such as Aus alia, Sou h A ica, e c. The p ess
eleases (e. g. by Dow Jones o Reu e s) also show
he me eo ic ise o compe i i e in elligence
awa eness. The numbe o pape s on Compe i i e
In elligence g ew om 68 in 1990 o 157 in 1994,
o 751 in 1998, and up o 9574 in 2003.
The Link Be ween Compe i i e In elligence
and S a egic Managemen
The indispensable da a needed o c ea e
a co po a e s a egy include he in o ma ion on
he s eng h and po en ial o he compe i o s and
hei in ended ac i i ies in hei sphe es o ma ke
in e es s. I is good o men ion he e he book o an
ancien Chinese gene al and mili a y heo is ,
Sun Tzu “The A o Wa ” saying ha : “I you know
you enemy and know you sel , you can fi gh in hund eds
o ba les”, (mode n edi ion, 1963). In wel e
chap e s Mas e Sun desc ibes he necessi y
o unde s anding he cha ac e o he enemy, his
s eng hs and weaknesses, as well as he necessi y
o co ec assessmen o one’s own capabili ies.
This way o hinking helps c ea e an eff ec i e
s a egy o s op and des oy he enemy. In ac , i
means unde s anding all he aspec s o he whole
hea e o wa . Fo ins ance, Chap e 13 is de o ed
o he use o spies and hei s a egic place, and hei
i eplaceabili y, when he in o ma ion abou
he enemy’s in en ion is necessa y.
La e wes e n au ho s, e.g. Ca l on Clausewi z
(mode n edi ion, 2008) w o e abou unde s anding
he enemy, he na u e o comba , as well as he
poli ical con ex , wi hin which he fi gh is
aking place. All his is needed o make he plan
o a success ul a ack o de ence. Such books dealing
wi h one’s p epa a ion and s a egy excellen ly
summa ize and unde line he uni ying ole
o in o ma ion, insigh and in elligence.
Ou a gumen s may be u he suppo ed by
he esul s o many wo ld esea che s in Compe i i e
1246 F an išek Ba es
In elligence. Fo ins ance, Liebowi z (2006) w i es
ha “ he esea ch o SIS In e na ional Resea ch (Klein),
ca ied ou among Compe i i e In elligence p o essionals
in 2004 showed, ha he sphe e wi h he highes alue added
in Compe i i e In elligence is he s a egic planning.” O he s,
e.g. Mon gome y and Magowen (1979), Ji ásek
(2008), Po e (1980 and 1985), a e o he same
opinion.
F om he abo e i is possible o conclude ha he
g ea es alue o co po a e Compe i i e In elligence
es s in he sphe e o s a egic managemen . I
means ha Compe i i e In elligence should be
p ima ily used o s a egic p oblem solu ion o
he co po a ion in ques ion (5), see mo e in Ba es
(2010).
We may he e o e ca e ully summa ize ha
Compe i i e In elligence is i eplaceable
o s a egic managemen o any co po a ion
in ending o play a mo e signi i can ole
on he mo e and mo e demanding ma ke .
Top manage s o fi ms will need he da a ha
a e i ally ele an and impo an o hei u u e
s a egic decisions. Unless he necessa y in o ma ion
o hei s a egic decision-making is no a ailable
in due ime, he s a egic ailu e seems ine i able as
well as he qui e possible liquida ion o co po a e
he Compe i i e In elligence on accoun o i s
uselessness, loss o impo ance and i s negligible
ou pu .
RESULTS
The o mula ion o co po a e s a egic plans
is “a mus ” o any u he decision-making
o he co po a ion. The co ec decision depends,
o cou se, on he amoun and quali y o collec ed
( ele an ) in o ma ion and i s deg ee o necessi y
o he fi nal decision. In his case, in o ma ion
should be aken o a commodi y, same as any o he
on he coun e . Each in o ma ion has i s o igin,
alue and p ize. The o mula ion o he objec i es,
hei impo ance as well as one’s own fi nancial
s anding a e he main elemen s in decision-
making, since he managemen o he Compe i i e
In elligence b anch ac i ely decides on he ange
o he collec ion o in o ma ion, i s analysis and da a
p ocessing needed o a s a egic decision.
The op manage o Compe i i e In elligence
has o choose among he a ian s o in o ma ion
acquisi ion wi h espec o he o mula ion
o s a egic objec i es and co po a e de elopmen
s a egies as ollows:
I. The co po a ion in ends o keep i s ma ke
posi ion sa e and secu e o he u u e.
II. The co po a ion in ends o keep i s s a us quo
ma ke posi ion and expand i he si ua ion is
good.
III. The co po a ion in ends o keep he momen a y
dominan posi ion and plans o c ea e condi ions
o a a ou able, long- e m ma ke si ua ion.
To accomplish one o he s a egies s a ed abo e
he managemen o he Compe i i e In elligence
b anch has o secu e (as a minimum pa
o in elligence cycle) he ollowing ac i i ies:
1. The o mula ion o equi emen s o knowledge,
planning, in o ma ion collec ion, equi emen s
and decision being issued o bo h he
in o ma ion collec ion and he ollow-up by he
Compe i i e In elligence ope a i es – see mo e
in Ba es (2012).
2. The ask-se ing coming om he co po a e op
managemen . Included he e may be a specifi c
issue iden ifi ed by he Compe i i e In elligence
b anch i sel o he ask ini ia ed by an ea ly
wa ning sys em.
3. The planning, easibili y, quali y and ele ance
assessmen o he da a al eady collec ed, gap
de e mina ion (i.e. which da a, in o ma ion and
in elligence a e missing o accomplish he ask).
4. The accessible open sou ces checking. The
selec ion o me hods and p ocedu es, s ep-
by-s ep planning and alloca ion o means and
esou ces.
DISCUSSION
I The Aim o Keep he Exis ing Posi ion
When he aim is o keep he exis ing posi ion o
he fi m on he ma ke , he Compe i i e In elligence
has o know:
1. The ac ual posi ion on he ma ke .
2. The quali y o s abili y o he selling and buying
si ua ion o one’s own i m.
3. The compe i ion si ua ion and he pene a ion
o i in o one’s own i m’s selling and buying
si ua ion.
4. The quali y, eliabili y and loyal y o he i m’s
own employees.
In spi e o a ela i e easiness o assessing
he p esen s a e o aff ai s, he assessmen
o he end de elopmen o possible changes
in u u e is much mo e impo an (and diffi cul ),
especially when he changes, which may, some imes
su p isingly, p eclude he ealiza ion o he s a egic
objec i es. The Compe i i e In elligence
managemen needs o know he inpu in o ma ion
o i s own decision making. The in o ma ion is
o be ob ained as ollows:
• om offi cial sou ces – newspape s, annual epo s,
p o essional li e a u e, in e ne , a chi es, e c.,
• a he mee ings o p o essionals – cong esses,
symposia, ade ai s, p o essional s ays and
s udies,
• h ough p o essional assessmen o one’s own
documen a ion and he subsequen (and cu en )
compa ison wi h he a ailable documen a ion
in he b anch in ques ion,
• by egula con ac s wi h i s own s aff whe e
he emphasis is pu on hei p o essional
compe ence, he knowledge o con empo a y s a e
The Objec i es o Compe i i e In elligence as a Pa o Co po a i e De elopmen S a egy 1247
o he b anch and he willingness o sha e hei
own ideas leading o ou pu imp o emen .
I is necessa y o e alua e and analyse
he in o ma ion ob ained in his way o u he use
in decision making. The in o ma ion has o comply
wi h he ollowing equi emen s:
• he sou ce o in o ma ion and he kind and ype
o epo ed ma e ,
• he specifi c con en s and con ibu ion
o he epo ed in o ma ion,
• he ime o in o ma ion acquisi ion, he ime span
co e ed by he acqui ed in o ma ion, and he ime
o i s ealiza ion,
• he si ua ion o in o ma ion acquisi ion (when
and whe e), he ci cums ances o ealiza ion
accompanying he epo ed ma e ,
• he ci cums ances o acquisi ion (by commu ni-
ca ion, documen , isi ing, impa ing),
• he easons o he impo ance o he epo ed
ma e ,
• he easons o he epo ing, acqui ing, w i ing,
o documen ing o he in o ma ion.
The s eps o ollow:
a) The es ima ion o he in o ma ion om he
ollowing poin s o iew:
• he es ima ion o he in o ma ion sou ce
om he poin o iew o e i y, p o essional
compe ence; he posi ion in he sphe e in
ques ion and he ela ion o one’s own as well
as he compe i ion en i onmen ,
• he in o ma ion es ima ion om he poin o
iew o i s e i y based on he compa ison wi h
ha acqui ed om o he sou ces,
• om he way o acquisi ion; he possibili ies
o offi cial use o one’s own decisions
o u he ac i i ies.
b) The measu es adop ed:
• o he ways o applica ion as s emming
om in o ma ion es ima ion,
• o he in o ma ion ex ension and comple ion,
• o he in o ma ion sou ce i sel ,
• o he check-up o all obscu e and ague da a
in in o ma ion.
c) The summa y o iden ifi ca ion da a
Gene ally he pu pose o he summa y is
he ma shalling o all he da a ele an o all
he subjec s men ioned in he in o ma ion.
Simul aneously, i is necessa y o collec all
he iden ifi ca ion da a in o de o ob ain u he
impo an in o ma ion abou he ela ions, links
and connec ions wi h o he subjec s. This is usually
ca ied ou by hei compa ison, complemen a ion
and ex ension. Such a p ocess may e en ually lead
o es ablishing some de elopmen o he subjec s’
mu ual ela ions and in e connec ions as well
as o he e ifi ca ion o he in o ma ion al eady
acqui ed i some disin o ma ion o decep ion is
suspec ed o e en confi med.
d) The ope a i es’ own opinion
When analysing he acqui ed in o ma ion
he possible a bi e s ha e o dis inguish be ween
he ollowing:
• qui e eliable and e ifi ed in o ma ion om ha
supposedly un e ifi ed, decep i e o un eliable,
• he in o ma ion o offi cial use om ha in ended
o hei pe sonal decision,
Then i is essen ial o o ganize i acco ding
o he poin s o issue, and comple e he missing
da a in such a way ha hey gi e a complex insigh
in o he issue. Wi h he in o ma ion analysis
fi nished, he ope a i e o mula es hei own
s a egy o u he ac i i ies, possibly se s he asks
o he acquisi ion o u he in o ma ion.
II The Aim is no Only S a us quo bu
Expansion in Case o Posi i e De elopmen
In such a case he subjec has o know e e y hing
necessa y o he accomplishmen o he aim. Thei
si ua ion is he same as in in o ma ion collec ion,
analy ical and decision-making p ocesses s a ed
in A, bu some addi ional ac i i ies in in o ma ion
collec ion has o be added wi hin he ame
o he ope a ion ask. The in o ma ion has
o con ain:
5. The de elopmen pe spec i e in he gi en
poin s o issue.
6. The ma ke in e es in one’s own p oduc
and in he compe i ion.
7. The weaknesses o he compe i ion (in i s
human esou ces, p oduc ion, and selling
and buying ela ions).
Mo eo e , when ealizing hei own in en ions,
hey ha e o, con a y o A, pay a en ion o he
ollowing:
• pene a ing among he decisi e-making,
managing, con ol and p oduc ion, esea ch
and de elopmen ope a i es o he compe i ion
wi h he aim o fi nding hei pe sonal weaknesses
and specifi c pe sonal, e en comp omising da a,
• fi nding weak poin s wi h he compe i ion’s
cus ome s; c ea ing si ua ions needed o he
weakening o he compe i ion’s posi ion.
In his di ec ion he fi m has o c ea e fi nancial
sou ces o co e he in o ma ion collec ion
om he compe i ion. The fi m usually “sends”
i s own ope a i es wi h he aim o building-up
a espec ed posi ion, o asks a fi m specialized in
such ope a ions o in o ma ion, o “acqui es”, on
he basis o “acqui ed in o ma ion”, i s own sou ce
di ec ly om wi hin he compe i ion.
He e he p ocedu es o in o ma ion collec ion
as well as he e alua ion a e he same as in A,
and he subjec mus ocus on he p epa a ion
and analysis as well as he eedback a ge ed
a he compe i ion, i.e. a decep i e ope a ion
weakening he compe i o and secu ing one’s
own expansion. Fo legal and e hical easons i is
ecommended he e o use hose ope a ions only
o p o ec ion o one’s own comme cial sec e s.

1248 F an išek Ba es
The disin o ma ion has o con ain he same
da a as he ue in o ma ion i sel , i has o con ain
some “in e es ing poin s” easily e ifi able
by he compe i ion, and i mus look eliable
and plausible o a possible compe i ion check-up.
The c i e ia o success ul disin o ma ion a e o be
obse ed om he poin o iew o he:
• en i onmen o i s infi l a ion,
• ime o applica ion, i.e. “ he ime and way” o i s
sending,
• leng h o i s ac i e applica ion.
The decision-making subjec has o ha e
pe manen access o he in o ma ion analysis,
especially o he disin o ma ion impac analysis
in o de o be able o make an op imum decision
in p ope ime and hus each he s a egic aim
o he expansion. I means ha hey o some o hei
close subo dina es ha e he access o he sou ce
and ins umen s o he collec ing and p ocessing
he acqui ed in o ma ion and applied
disin o ma ion.
III To C ea e, in he Exis ing Dominan
Posi ion, he Condi ions o Long- e m
Ma ke Dominance
In his case he Compe i i e In elligence si ua ion,
while he da a collec ion is he same as in A and B,
includes he o ganizing o he disin o ma ion.
Mo eo e , he Compe i i e In elligence ac i i ies a e
o be ex ended o include he in o ma ion collec ion
as well.
8. Global s a egy o speci i c decision-making
ca ied ou by poli ical leade ship.
9. The aims and expec a ions o go e nmen s
and law-gi ing au ho i ies.
WARNING!
In no case he ac i i ies sub B and C a e
pe mi ed o use une hical, mischie ous o illegal
p ac ices. On he con a y, all he ac i i ies
ha e o ope a e wi hin legal limi s and socially
desi able ules o beha iou as decla ed by
mo al s anda ds and he public opinion alid
in he socie y, whe e he ac i i ies a e supposed
o be ealized. The e o e, he poin he e is no
only he business legali y bu also he mo al
alues o he socie y! The s ic compliance
wi h hose legal and mo al s anda ds is highly
necessa y especially in indus ial ”lobbing”.
Fo he managemen o Compe i i e In elligence
i is always good o conside he deg ee o success
p obabili y and he eff o s and esou ces spen
on he acquisi ion o ce ain in o ma ion as well as
he necessi y o i as a “keys one” o a successi e
in elligence analysis.
CONCLUSION
In o ma ion plays an in eg al and impo an pa
in co po a e managemen . I is conside ed o be
one o he mos powe ul and p omising weapons.
In sho , he possession o in o ma ion means
he possession o an ad an age. The ques ion is, i
one is able o use he in o ma ion eff ec i ely and hus
achie e he p e alence o e he i al. Howe e ,
o a decision-make he in o ma ion becomes an
ad an age when, and only when, i s impo ance is
unde s ood in he con ex o oppo uni ies enabling
a compe i ion gain o he co po a ion, i.e. when
a alue added is added o acqui ed o cons uc ed
ini ial in o ma ion and “in elligence” is hus
c ea ed. This added alue appea s in a specifi c phase
o in elligence cycle o Compe i i e In elligence
– in he in elligence analysis, which he au ho
conside s “ he oyal discipline” – see mo e in Ba es
(2011). Wi hou a secu e and success ul in elligence
analysis inside he in elligence cycle, i is no
possible o conside he Compe i i e In elligence
a iable body o he co po a ion; on he con a y, i
aces an imminen h ea o liquida ion o a gene al
econs uc ion.
SUMMARY
The au ho pays a en ion mainly o issues o he in elligence cycle wi hin Compe i i e In elligence.
He desc ibes he p esen s a e o aff ai s in s anda d Czech co po a ions. He concludes ha he wo k
o Compe i i e In elligence g oups is mos ly di ec ed by ope a i e o de s o op-managemen ;
on he o he hand he cases when a en ion o Compe i i e In elligence is ocused on answe ing
he Key In elligence Topics a e e y a e. Compe i i e In elligence ou pu s a e mos ly he ou pu s
om s a is ical analyses complemen ed wi h ce ain kinds o summa ies (syn heses) o he pieces
o knowledge ob ained (in he bes case) om da a o Signal Analysis (SIGINT). The esul is ha
such ou pu s a e applicable mos ly in ope a i e managemen and qui e insuffi cien o any s a egic
conside a ion. On he o he hand, he da a op manage s need o hei s a egic decision-making a e
he da a ele an o si ua ions which may occu in u u e. Unless he op managemen ge his so
o da a, he co po a e Compe i i e In elligence g oup is useless and may be easily liquida ed.
In he ollowing pa he au ho d aws eade s’ a en ion o he impo ance o Compe i i e In elligence
o he co po a e s a egic managemen . He shows he impo ance o he connec ion be ween he a s
o s a egy and in elligence, as ea ed in he amous wo ks o he pas and p esen , such as e.g. Mas e
Sun Tzu’s “The A o Wa ” and Ca l on Clausewi z’s “On Wa ”.
The nex pa o he pape off e s he solu ion o some poin s o issue in Compe i i e In elligence
cycle, namely i s closeness o he co po a e de elopmen s a egy. The au ho p esen s his own idea
o Compe i i e In elligence managemen , especially he ac i i ies necessa y o he in elligence duly
se icing he co po a e s a egic managemen . The Au ho sugges s a minimum numbe o issues
The Objec i es o Compe i i e In elligence as a Pa o Co po a i e De elopmen S a egy 1249
whe e he basic in o ma ion asks o quali y in elligence. The ex en o he in o ma ion depends
on he de elopmen s and is o be de e mined acco ding o he p incipal de elopmen aims s a ed by
he co po a e op manage s. The au ho fi nds h ee basic de elopmen s a egies, i.e. a) co po a ion
ies o keep he s a us quo on he ma ke , b) co po a ion in ends o expand, c) co po a ion keeps
i s dominan ma ke posi ion and in ends o aff ec he ma ke in i s a ou o a long- e m pe iod
in u u e.
No es
In his con ex he compe i i e capi al means he possible summa y o all knowledge a ailable o be
legally ob ained abou he compe i ion.
O cou se, we mean he me hods used in he p ac ice o go e nmen in elligence se ices ha a e
ei he una ailable o unfi o ou pu pose.
Signal In elligence (SIGINT) – he imely acquisi ion o signals and symp oms ega ding he “oncoming
eali y”.
Jan P. He ing, o me ly o CIA, wo ked as he CI di ec o o Mo o ola, whe e he designed he gene ally
accep ed ope a ion model o CI ac i i ies.
The con ibu ion o CI o ope a i e and ac ical managemen is, o cou se, undispu able; on he o he
hand we belie e ha he g ea es impo ance o he co po a e CI es s in a s a egic subsys em
o co po a e managemen . We e en da e o say ha Compe i i e In elligence is qui e indispensable
o he s a egic managemen and p o ides ex ensi ely o a mo e signifi can ole on he ma ke .
Acknowledgemen
This pape ep esen s a pa ial ou pu o he specifi c uni e si y esea ch p ojec “Mic oeconomic
and mac oeconomic p inciples and hei impac on he beha io o households and fi ms” o he In e nal G an
Agency a he B no Uni e si y o Technology ( egis a ion numbe FP-S-13-2052).
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1250 F an išek Ba es
Con ac in o ma ion
F an išek Ba es: [email p o ec ed].cz