Business intelligence (BI) refers to skills, technologies, applications and practices used to help a business acquire a better understanding of its commercial context. Business intelligence may also refer to the collected information itself.Some people use the terms business intelligence and competitive intelligence synomously whereas some say that competitive intelligence is the language of business intelligence.
In a short phrase, it may be defined as both a product and a process, and in more complex words we may define CI as an ethical and legal business practice. This ethical and legal part is very important as CI professionals emphasize that the discipline is not the same as industrial espionage which is both unethical and usually illegal. In competitve intelligence ,the focus is on the external business environment.There is a process involved in gathering information, converting it into intelligence and then utilizing this in business decision making. CI professionals emphasize that if the intelligence gathered is not usable (or actionable) then it is not intelligence.
A more focused definition of the term is that CI is the organizational function responsible for the early identification of risks and opportunities in the market before they become obvious. This definition focuses attention on the difference between dissemination of widely available factual information (such as market statistics, financial reports, newspaper clippings) performed by libraries and information centers.
CI can be summarized as Finding out information for business planning.
Typically, information must be quantitative, in dollars, not references to documents.
It is usually needed in a huge rush.It’s usually about the future, and thus inherently uncertain.Often a high premium on assertiveness, not accuracy.But it can have high importance and status in a company.
CI is the purposeful and coordinated monitoring of your competitors, wherever and whoever they may be, within a specific marketplace. Your "competitors" are those firms which you consider rivals in business, and with whom you compete for market share. CI also has to do with determining what your business rivals WILL DO before they do it. Strategically, to gain foreknowledge of your competitor's plans and to plan your business strategy to countervail their plans.
Companies and industries prosper through improvements in competitiveness, leveraging core competencies, and competitive intelligence is at the core of the objective of improving competitive advantage. Competitive intelligence is therefore;the core of competitive strategy .
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