In the current fast-paced world of e-business, there is a number of strategies and phenomena used. Due to which number of new terms are introduced and beginners often confuse these terms with that of a similar name.
Business Intelligence (BI) and Competitive intelligence (CI) are counted among them. Both the terms are different and have different purposes. But the aim of both the phenomena is the same, to direct decision-making.
These terms have gained popularity because of their effectiveness and efficiency. Around 94% of companies are investing in competitive intelligence. Similar is the case with business intelligence; see the following figure depicting the adoption of phenomena in organizations.
Let’s discuss both the phenomenon in more detail.
BI is the process of extracting authentic data from the relevant resource and analyzing it. This analysis must lead towards a better understanding of competition, industry, and customers.
The organizations which are professional in BI collect raw data and turn it into an actionable one. They trace trends and developments from their data and use that to overthrow competitors in the market.
The general elements observed in the BI can be; the effectiveness of the organization’s B2B strategies, customer’s demand, or activities that engage consumers. Different tools and strategies can be used for BI, including benchmarking, sales analytics, and reporting.
The role of BI in an organization is significant; it is included as a preamble in all the strategies. Succeeding is the role that BI plays in an organization.
The BI is beneficial for the whole business; its impact is not limited to one department or team. Succeeding are the benefits of BI department wise.
The CI is generally considered as the competitor’s information. However, it is a broad subject and can cover multiple aspects of a business.
The CI can be defined as the phenomena that facilitate the organization in increasing their revenue options and decreasing their strategic risk. The intelligence and data are used to increase competitiveness in accordance with the business environment and pricing strategies.
The whole process is segmented into four different processes. These are; collecting data, evaluating the raw data, disseminating data to stakeholders, and taking action on the basis of the data set.
The number of competitors is increasing rapidly. A single CI department can’t cover all the current and future competitors of the product.
Therefore, it is suggested to prioritize the targets and objectives of your CI program. Conclusively, it can perform well if it is focused on a single department at a time.
For instance, your ultimate motive is to increase the sales of your product. Then you should focus on the sales strategies of competitors. However, if you are willing to launch a new product in the market, the focus must shift accordingly.
In case of multiple priorities, you should increase the number of CI employees and enhance the CI tools usage.
For running a successful CI campaign, it is essential to identify the stakeholders first. The CI will be answerable to all these stakeholders. Therefore, the specific definition of stakeholders should be provided to the CI first.
The stakeholders will be responsible for drafting a CI function and reviewing it regularly under different circumstances. The typical stakeholders may include; product managers, sales representatives, executives, and marketers of the organization.
Similar to BI, the CI is also beneficial for all the departments in an organization. Generally, beginners get confused that CI is only useful for the sales department, but it is not true.
Following are the impacts of CI on different departments.
The BI and CI are two different phenomena, but they are interlinked with each other. The CI is even considered as a part of BI. This s because the information collected from the CI is later used in the BI.
For instance, if an organization is facing a major decline in their sales or monetary losses, they must consider data provided by the CI. It can be either due to the new product launched by the competitor, or they might have taken academic writing services for content marketing. The stakeholders will be able to use BI on the basis of these data sets provided by CI.
However, the skill set required for both phenomena is different. The BI is a more technical field and requires knowledge regarding; database design, data management, and quantitative functions.
On the contrary, CI is majorly dependent upon strategic analysis and prediction; the numbers are less emphasized in this domain. Still, both the phenomena work parallel to each other and serve major functions in an organization.
The convenient reach to the internet and computing devices are supporting the digitalization of the globe. This rapid movement also creates competitive marketing in every domain, which makes it tougher to stay.
The BI and CI are the two different business phenomena that can be used to maintain your position in the market. The CI provides all the necessary details regarding your competitors. On the contrary, the BI supports taking future divisions on the basis of these statistics.
I hope the details that I have mentioned will be enough for a beginner to grasp the concepts of Bi and CI.
Amanda Jerelyn is currently working as a Content Executive at Crowd Writer. You can take assignment help from her, as she is an expert content editor. She is a dedicated content writer and a passionate business analyst. Her passion and dedication are visible from her blogs.