Competitive Intelligence vs Business Intelligence vs Industry Espionage
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“The three concepts or terms that are often mentioned in economic systems, theory and practice: competitive intelligence, business intelligence and industrial espionage, are not only frequently mentioned, but very often misinterpreted and mixxed. It is very important to explain the differences between these three concepts.
Development of business intelligence based on the fact that today 95% of the data publicly available. 90% of corporate data they have within their systems that can be used in running business, but unfortunately, some studies show that companies use only 10% of available data.
The definition of business intelligence are many. It is said, how many authors, so many definitions. The free encyclopedia says that the business intelligence process of collecting information in the business world, with the aim of gaining competitive advantage. Business Intelligence uses the information that companies collect, usually in the data warehouses, converts them into information useful for business, and from information they can turn into knowledge. To become knowledge, information must be transformed by review, comparison, and linking cause-effect relationship.
Competitive intelligence is a narrower concept than the concept of business intelligence. Competitive intelligence is defined as the process of data collection through legal, processing of data and analysis that are making the decisions in businesses related to the overall market competition, actual competition in the market and the competitiveness of enterprises. CI is solely focused on competition and competitive advantage.
CI is the purposeful and coordinated monitoring of rival business entity within a specific market niches. Intelligence competitiveness uses a lot of methods and techniques which collects the necessary data requires integration with existing IT infrastructure, analysis and dissemination of this information in order based on that decision. Using different methods of CI allows the prediction step of the competition and their plans. Accordingly, the company can plan its steps and thus gain a competitive advantage.
The goal of CI is TO detected threats that come from the business entity of its competitors, eliminate, or at least mitigate the impact of surprises, using timely information omogućuti reducing the time required for the reaction, thus increasing the competitive advantage. Finally, information about the competition can prove the threats and opportunities with which the company faces. Knowledge of competition is essential if a company wants to survive in the market.
Unlike business intelligence and competitive intelligence, which fall under the legal way of management, there are industrial espionage, which is illegal, unethical and immoral way of collecting classified commercial information.
As far as the BI and CI were useful and desirable in organizations, industrial espionage should never resort to. BI and CI used its own data and data that are public and where everyone can access. Industrial espionage searching and collecting data that should remain a business secret of the company.”
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