| Back in business school we learned that every | | | | This fourth discipline, competitive intelligence, is hardly |
| successful business must master three disciplines: | | | | ever talked about. Business schools are just starting to |
| Discipline One: Operations | | | | include courses on intelligence. But the concept is not |
| Discipline Two: Finance | | | | new. |
| Discipline Three: Marketing | | | | In the fifteenth century, the House of Fugger Bank |
| "Operations" means doing what your business does. | | | | started an intelligence department and published an |
| Do you make cars? You'd better make good cars. If | | | | intelligence newsletter for its salesmen. |
| you serve meals, deliver good food and a good time. | | | | In 1898, John D. Rockefeller of Standard Oil was the |
| Walmart sells the same items as other stores, but their | | | | first businessman to publicly use a coordinated, |
| mastery of operations, especially distribution, allows | | | | organized business intelligence unit. His clerks and |
| them to profit at prices unmatched by their | | | | analysts reportedly possessed a giant card file on |
| competitors. | | | | competitors, customers, politicians, investors, bankers, |
| Meanwhile, a business must be able to finance those | | | | and personnel, along with sensitive info on friends and |
| operations. This means being able to pay one's | | | | enemies. ExxonMobil, the descendent of Standard Oil, |
| employees and suppliers until the cashflow in exceeds | | | | keeps that tradition alive today with an intelligence unit |
| the cashflow out. But like water management, | | | | larger than those of some European governments. |
| cashflow management is never over. Accounting, tax | | | | However, we have evidence to prove the existence |
| laws, investments, loans, installment plans, and stock | | | | of informal business intelligence activities since before |
| offerings are all money problems or blessings to help a | | | | the time of Christ. |
| company grow. Amazon survived for several years | | | | The Babylonians wrote about agents (spies) sent |
| until they grew big enough to become profitable due to | | | | out with the caravans. |
| the financing genius of Jeff Bezos. | | | | In the first century BC, the Corinthians used |
| As if handling operations and finance simultaneously | | | | informers to find out what the rich Roman collectors |
| weren't enough, a business must market itself or it will | | | | sought so that they could manufacture and "age" |
| die. Marketing can't be left until operations and finances | | | | some of the finest antiques in the empire. |
| are in place. Business is an 'all or none' activity. So the | | | | It would take several volumes to study the Venetian |
| entrepreneur must also know advertizing, marketing, | | | | traders, the Spanish, and the English. They were all |
| and branding to launch and run his business. One soft | | | | masters at gathering business intelligence from kings, |
| drink manufacturer is surely the world champion of | | | | pirates, merchants, and foreigners. |
| marketing. Having dominated the USA several years | | | | But perhaps the best example from history is the |
| ago, they moved on to Europe, South America, Africa, | | | | Japanese. When they exploded onto the world stage |
| and Asia. I have walked into a bar in the desert in | | | | in the 1880's, the Japanese knew from their long |
| Burkina Faso and there was a giant sign advertising | | | | history of rice and silk trading how important it was to |
| their drink in two languages on the wall. | | | | have relevant and timely intelligence about their |
| The ability to juggle these three knives used to be | | | | competitors, suppliers, and consumers. They continue |
| enough to put one's business on the road to success. | | | | to lead the world in business intelligence today. |
| However, the world is changing and business is | | | | Having worked as a contractor for three successful |
| changing right along with it. | | | | corporate intelligence departments, I will walk you |
| And so we see great businesses that have great | | | | through the steps to set up an economical intel unit in |
| operations, the best marketing programs, and almost | | | | your company. In the following series we'll look at the |
| unlimited financing shrink and fail as their smaller and | | | | difference between information and intelligence, and |
| weaker competitors gobble up their customers. An | | | | how the business owner can use Open Source |
| astute observer will ask: | | | | Intelligence, Human Intelligence, Imagery, and the US |
| Why does one business grow and the other one fail? | | | | Government to legally get an edge on your |
| Because there is now a Fourth Discipline: Intelligence | | | | competitors. |
| In the new economy the businesses that grow and | | | | With a competitive intel capability we will see how a |
| remain are the ones with superior intelligence. Yes, | | | | small business can launch specific strategies and |
| some have just the right product at the right time; | | | | tactics to use that intelligence capability to gain |
| chance plays a role in every part of life. But, if they | | | | customers, gobble up the best executives, protect |
| were just lucky, they will soon be swallowed up or | | | | one's own company from espionage, and, most |
| trampled down by other enterprises that understand | | | | importantly, gain An Early Warning. |
| this fourth discipline. | | | | |