Academy of MARKET INTELLIGENCE (AMI, http://www.mkintel.org/) Monthly Brief

 

aUTHORED BY dR. tOM gROOMS

 

July 2002

 

No. 007

 

"In-house Capabilities"         

 

From a historical perspective, successful business enterprises have been collecting and using intelligence in an organization manner since the late fourteenth century, when the House of Fugger from its base in Augsburg, Germany made a fortune in textiles and mining, and then became one of the Continent’s first international banking houses, which launched its “manuscript newsletters” to provide key officers with a steady flow of carefully selected political and commercial information. Since then, just about every major business enterprise has developed some form of intelligence-collecting activity.

 

Today most large companies have several intelligence-type activities under way, including market research, economic forecasting, political risk analysis, reverse engineering, business intelligence, marketing intelligence, and market Intelligence. It is this broadening of the concept of intelligence - from business intelligence of stealing secrets, which is legitimate for a government to do under certain circumstances but never for a private enterprise, to market intelligence of timely information – that has freed business to leap forward in the use of intelligence.

 

Now some of the large multinational companies that do not have in-house capabilities regularly purchase intelligence analyses from one or another of the intelligence-consulting firms that have established credible reputations for confidentiality and quality of intelligence. Based in the world’s political and financial capitals – Washington, Dallas, New York, London, Paris, Zurich, and Tokyo – most of these firms are owned and operated by former high-level government officials who, in effect, are repackaging and selling to the aforementioned corporate clients, often for astoundingly huge fees, the information and insights they acquired while in office. With the support of topflight research teams, themselves consisting mainly of lower-level ex-government officials, these firms provide intelligence to corporate clients at a level, and on a range of subjects and issues, never before available on the open market.

 

Thus, market intelligence as an in-house operation to the CEO has specific advantages and higher levels of efficiencies in the areas of knowledge management systems and direction. This is not to suggest a lessening of the value received from the external sources, but to point out what an external source cannot provide – CEO checks and balances regarding organizational performance and enhanced value of the intelligence application by the organization.         

  

 

Copyright: This is intended solely for the viewer or entity to which is seen and contains confidential and privileged information. Any review, dissemination, copying, printing or editing are encouraged by the author only with full credit and citation attached.  All ideas, concepts, data, information, procedures, and techniques, and all rights thereto, are strictly reserved.

Disclaimer of Liability: Information and research provided herein is believed to be reliable, but its accuracy cannot be guaranteed. The author is not responsible for actions taken based on the information provided. The information does not purport to be complete; therefore, consult with expert legal, tax, business, and financial counsel before taking any action. The Latin maxim "caveat emptor" applies.

® 1997 - Market Intelligence