Measurement

Competitive intelligence professionals and academics have tried for years to measure the impact of competitive intelligence on businesses, with little success. It is not like calculating the profit on a product that is manufactured from parts costing $X, and then sold for $X + $Y. There are too many things that affect the success of a company in a competitive environment. Measurable results from competitive intelligence are elusive.

So how do you know whether you should invest in it?

Costs Versus Benefits

First step: Assessing Costs of Competitive Intelligence of acquiring and implementing competitive intelligence methods and technologies.

Next, compare The Value of Knowledge with The Cost of Not Knowing something important about your competition.

Finally, Calculating the ROI (return on investment) you might expect from competitive intelligence.

For referenced reports of companies that have quantified their success with competitive intelligence, please see the Measurement Resources section.