Mastering the Art of Professional Competitive Intelligence Investigations
An investigation is a search for facts or truths. But conducting a thorough and professional one is far from simple. This is especially true in competitive intelligence. A competitive intelligence exercise should be treated as an investigation that uncovers insights about competitors, markets, and new trends. It is and has never been about collecting lots of data. The complexities involved in professional competitive intelligence depend on the desired outcome.
The starting point can often be ambiguous or unclear.
The same principles apply in high-stakes investigations as in a proper competitive intelligence project:
- Thoroughness
- Neutrality
- Evidence-based findings
This applies to law enforcement, corporate intelligence, and market research.
The Importance of a Strong Foundation
As in other investigations, the starting point may seem obvious in competitive intelligence. It’s to find out what your competitor is doing, how they’re performing, or where the market is headed. But these questions require more nuanced thinking and clarity of purpose. For example, do you want to understand a competitor’s strategy? Or do you want to find gaps in your positioning to capitalise on market trends? Or are you going to get distracted by their past reputation, your own industry experience and biases?
Equally important is understanding who should conduct the investigation. This is about more than just expertise. It’s about ensuring the investigator is free from the biggest risk to any investigation: bias.
Bias: The Investigation Killer
Bias is the silent killer of investigations, including competitive intelligence projects. A key issue is the belief that an investigator or analyst can be entirely free of bias. It’s almost impossible because we all have ingrained experiences and perspectives. But, knowing these biases and managing them can greatly improve an investigation.
There are few common bias seen in intelligence investigations:
- Confirmation bias: You look for evidence that supports your beliefs about a competitor or market.
- Verification bias: You neglect contrary data that may challenge your preconceived notions.
- Availability bias: You rely too heavily on easily accessible information and overlook deeper, more valuable insights.
- Experience bias: You assume that because something happened in a previous situation, it will occur again in a similar context.
- Personal bias: Your beliefs or preferences reflect how you interpret competitive moves.
I’ve seen a common bias when an organisation “knows” a competitor’s strategy. It then tells its team to prove this theory, not to explore other angles. This creates tunnel vision. It can limit your findings and lead to poor decisions.
Investigations Directed by Bias: A Common Pitfall
In my experience with competitive intelligence projects, I’ve seen biases repeatedly derail investigations. Let’s say, for example, that a company believes a competitor is pivoting towards a new product category. Investigators may ignore data showing the competitor is retrenching or expanding elsewhere if the goal is only to prove this hypothesis. One key to countering bias is maintaining a mindset grounded in evidence. Don’t aim to prove your assumption. Aim to find the truth, whether it matches your expectations or not. Always challenge your team’s assumptions during the investigative process. Ask them to back up their conclusions with solid evidence, and don’t be afraid to ask, “What are we missing?”
Establishing Clear Objectives: The Endgame Matters
Before diving into any competitive intelligence investigation, it’s critical to establish clear objectives. Are you trying to gather actionable intelligence to inform a new strategy? Or perhaps the goal is to monitor competitive activities for possible threats? The end goal will shape how you approach the investigation and what tools and methods you employ.
If you must gather evidence for a strategic decision, how you gather it is vital. This is true when deciding on a product launch or entering a new market. You must ensure your findings are reliable, properly documented, and legally obtained. Not meeting these standards can have serious effects. This applies to both your investigation and the decisions based on it.
In some cases, intelligence gathering may not need strict evidence. Instead, it may focus on gaining insights for internal use. The process must be ethical, especially if your organisation’s reputation is at stake.
Information Gathering: Legal and Ethical Considerations
How information is gathered can massively impact an investigation’s credibility. In competitive intelligence, dubious sources and illegal methods, like hacking, can harm your findings. It can also damage your reputation and expose you to legal issues.
For example, using unethical means to access a competitor’s data may yield short-term insights. But, the long-term damage could cripple your company’s position. It could lead to legal actions, a loss of trust, and industry backlash. Read more: Transforming Development through Competitive Intelligence to Enhance Team Performance.
Ethics and legality must be foundational pillars of any investigation. In the competitive corporate world, it may be tempting to cut corners. But, these shortcuts can have serious consequences that far outweigh quick gains.
The Art of Interviews in Competitive Intelligence
Interviewing is usually overlooked in competitive intelligence. Most people collect lots of information and hate talking to anyone. Never mind interviewing someone. Talking to insiders, ex-employees, or key stakeholders will make or break an investigation. It all depends on how you conduct those conversations. Contrary to popular belief, not everyone is a “natural” interviewer. It requires training and practice.
It needs to sit down and go through a list of questions line by line, listening to the answers and pulling more questions to dig deeper.
Good interviews seek truthful, insightful information. They should refrain from leading the interviewee to confirm their theories. A key mistake in competitive intelligence is seeking a “confession” in interviews, which means trying to confirm a specific competitive action.
We recently had a client wanting specific information to confirm they were brilliant. Their products were market-leading, and their main competitor admired them. After our interviews and investigations, they were unhappy, and we countered their thinking. And yes, guess whose fault it was? Yep, the simple fact Truelayer was miles ahead of them in terms of technology and reputation. So much so that they were playing in a pool that Truelayer wouldn’t put a foot in, even to test the water.
It was like Macclesfield Town enquiring about Manchester City‘s backup striker. It’s pointless and embarrassing. And not professional competitive intelligence. Read more: Give the game away to reveal your hand too early
Safeguarding Sources and Information
Skilled interviewers focus on open-ended questions that encourage sharing broader insights. These can reveal hidden nuances in the market and competitors’ behaviour that would have otherwise gone unnoticed. Protecting your sources is a crucial consideration when gathering intelligence. If you’re talking to a competitor’s former employee or an analyst, their identity should be protected. Revealing it could expose them to professional or legal risks.
You also need to consider the provenance of the information you receive. Where did it come from? Who else knows about it? How reliable is it? If the information is widely known, its value may be limited. However, if only a small circle is privy to it, your ability to act on it discreetly becomes a competitive advantage.
Professional Competitive Intelligence: Professional Investigations Demand Professional Expertise
Conducting a thorough, unbiased competitive intelligence investigation is an important and perhaps specialised skill. Many, even within the competitive intelligence sector, avoid talking to their targets, preferring secondary research and GPT-type tools. However, they often need more expertise. Reliable intelligence is complex and requires a professional touch to make informed decisions.
We are Octopus. The Global People-Powered Competitive Intelligence Agency.
Outsmart your competition. Make the unknown known. Octopus helps you gain clarity in complex markets. With clients and tentacles around the world, we deliver sharp, actionable competitive intelligence through a blend of deep primary (HUMINT) and secondary research. If you’re looking to make smarter decisions, beat the competition, and reduce uncertainty, we’re the partner you want on your side.
