Strategic intelligence, operational intelligence and tactical Intelligence
All business decisions fall into one of three categories:
- The board is responsible for setting the overall direction
- Managers handle the preparation of budgets and the formation of teams
- The sales staff win or lose individual deals deal by deal
Each of these groups requires a different kind of intelligence, at a different speed and in a different form. We deal with all three levels. The following section shows what each level looks like in practice, using examples from our most recent client work.
Intelligence at three levels
1. The big picture (strategic)
We assist our clients in identifying where a competitor is going and in imagining what the market might look like in the coming years. We set out multiple scenarios and highlight early indications of which one might be taking shape. This is aimed at leaders and investors who are making major decisions.
Strategic examples
A global manufacturer of plasma medicines asked us to map the supply and manufacturing capacity of its three main competitors. Their current suppliers would not provide that information. We approached the people who could—former staff members of the plants, suppliers, and partners. The results indicate each competitor’s growth potential, the limits to that growth, and the signs that will show which path each will follow.
A firm that provides travel services wanted to determine whether the two rapidly growing ancillary aggregators posed a threat or could instead be considered potential partners. We examined where they source their supply, how they earn revenue, who controls pricing, and how many customers they have secured.
The board then used this information to decide whether to build up, enter a partnership, or compete.
2. The set-up (operational)
We look at how a competitor is built, how many people they have, who they are hiring, how their sales team operates, where they spend their money, and what they charge in different countries. This helps those deciding where to allocate this year’s budget and how to compete against them. Or beat them.
Operational examples
The company, a global technology manufacturer, wanted to learn how its four main competitors organise their specific technology operations in Europe and the US. We examined the number of employees, the structure, and the lines of reporting in each market so the client could see where competitors have invested and where they have not.
A supplier of mining parts required actual prices for vehicle components in Africa, Australia and the Philippines. We got written quotations from dealers, distributors, and manufacturers in each country, and the client now has prices by brand, part, and market, along with written evidence.
3. The here and now (tactical)
We show how a competitor sells, what they say, their pricing, any discounts they offer, and what they say about you to others. The information is brief yet to the point. This is for sales teams preparing for meetings.
Our work can cover all three areas. For example, if we pose as a buyer and go through a competitor’s sales process, the salesperson and competitive enablement teams get a summary, the sales manager learns how the rival’s team operates, and the board sees how much pressure the competitor is facing.
Tactical examples
A software company in Europe which specialised in vehicle remarketing wished to find out how its three competitors carry out their sales. We went through the sales process with each company across the EU. For each competitor, the sales team received a scorecard, a pricing and packaging matrix, and recorded demonstrations which we obtained.
A US email marketing platform asked us to research six other platforms. We noted everything that each salesperson said, the prices they quoted and the discounts they provided. We then gave the client’s sales team a brief overview of each competitor and a script for their next call.
A software firm wanted to know what its own people were telling outsiders. Information can leak without any hack. It slips out in a friendly chat. We posed as a serious buyer on a sales call, then as a curious visitor at the firm’s stand at a major trade show.
Within those two conversations, staff shared their discount ceiling, a delayed product release and the name of a key client. The sales director received a debrief by team and channel, with no staff named, a ranked list of fixes, and real examples for training. Find out more about our competitive counterintelligence service.
But How Do We Work?
The first step is to determine the decision that must be made; we need to find out who is responsible for making it, when it should take place, and what might influence the decision. If no one can define the decision in question, the project is not undertaken.
We gather information from former staff members, previous partners, customers who have left, and those who have bought into the market. Instead of relying only on database data, we use real conversations.
Then we test our findings. We record our assumptions, develop several possible explanations, and then look for evidence that would disprove each one. We also consider the possibility that someone might be deliberately trying to mislead us. Before we show the conclusions to the client, we have a colleague challenge them.
We separate the source from the account, since even a trustworthy individual can make a mistake and a less reliable person might still be right. And we explain how confident we are in our findings. We label what a fact is, what is our judgment, and what is a guess. We also say what could make us change our view.
Each finding is followed by a clear explanation of its significance and the next steps; in our view, we haven’t fulfilled our duty if the client has to work out the meaning themselves.
We identify important early signs and keep a record of them. As a result, the knowledge the sales team gains from fieldwork contributes to updating the overall strategy rather than being lost.
Closing words
Many companies gather a large amount of information yet still make decisions without a clear basis. Our role is to eliminate that gap. We begin by looking at the decision in question, then consult the people who are best informed, check what they say, and explain its meaning as well as what you should do afterwards. Whether you need to draft a plan for the next five years or win next Tuesday’s meeting, we can help. Contact us about the decision you need to make.
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.
Key Takeaways
- Business decisions fall into three categories: strategic, operational, and tactical intelligence.
- Strategic intelligence helps leaders predict market trends and evaluate competition using various scenarios.
- Operational intelligence focuses on how competitors are structured and where they allocate resources for informed budgeting.
- Tactical intelligence provides insights into competitors’ sales processes, pricing strategies, and promotional activities for sales teams.
- Gathering intelligence requires thorough research, testing assumptions, and providing clear explanations for clients to make informed decisions.
