Jamie Smith : Awareness and Attitudes: the Key Drivers of Competitive Intelligence for SMEs (en anglais)

By Jamie Smith

Marketing Strategy teacher in France

De Montfort University in Leicester, UK.

Being one of the rare ex-small-business managers who have turned to the academic world and research I can sympathise both with the SME managers... and the academics who try to conduct research with them. Although it was some 15 years ago I can still recall the overbearing priorities of finding the next client, cash management, and managing a small team. Since this time, the contribution of SMEs to national economies has become recognised together with an ever growing body of knowledge in this domain. Although far more research is done on Competitive Intelligence in large companies, the SME domain is growing.

While the weaknesses of SMEs are well known, notably the lack of human and financial resources, less is said about their strengths in terms of competitive intelligence. Whereas a CEO of a large company may be limited to strategic decisions, the CEO of an SME will be making strategic, tactical and operational decisions simultaneously. In addition to this concentration of decision centres, SMEs have their proximity to the field and the flexibility to act quickly in changing environments. All of these attributes facilitate the effective implementation of Competitive Intelligence. Furthermore, the SME manager has several roles, all of which enrich his exposure to information. More than with large companies, Competitive Intelligence in SMEs is driven by the character of the decision maker. Knowledge emanates from how a decision maker reacts to information, and not from the information itself.

I have two contributions to make: first, as an academic I would like to sum up the main research that has been published in the English and French speaking worlds concerning Competitive Intelligence and SMEs. Second, on a more personal note, I give my opinion on what a modern SME manager's attitudes should be towards Competitive Intelligence (CI).

In the English speaking world, SME focus for CI dissertations and thesis has been relatively limited. From 2003 to 2006 only three were identified in the bibliography and assessment of key CI scholarship, none of which were in 2006 (Fleisher et al 2007). More emphasis has been given to studying large companies as opposed to SMEs (Tarraf & Molz 2006). Early work by Groom & David (2001) suggested that SMEs were not very concerned by CI. Nevertheless a few quite major studies have focused on SMEs: In Canada, Brouard, 2006, looked at environmental scanning practices in SMEs. Salles, 2006, examined the information needs of SMEs in France in order to conduct Competitive Intelligence. In Switzerland, a research-action approach showed the necessity of a strategic assessment to determine CI needs in SMEs (Begin et al 2008). A CI country comparative study of Belgium and South Africa (Saayman et al 2008) found that there were few differences between small and large companies in terms of intelligence practices. However, French CI research has highlighted the different practices between large and small companies (Bulinge 2001; Begin et al 2008; Larivet 2006; Salles 2006). In France Competitive Intelligence in SMEs is a particular focus of government-sponsored programmes that are being implemented across its regions (Smith and Kossou 2008; Moinet 2008).

Two books can be identified in France that named the French equivalents to Competitive Intelligence and SMEs in their titles: SMEs face the challenge of Competitive Intelligence (Laurent et al 1998) and SME Strategies and Competitive Intelligence (Salles 2003). A simple search on the French data base DOGE (Documentation en Gestion des Entreprises) using SMEs and CI as key words jointly gives 52 results. However, as is often the case with CI publications, most of these articles are journalistic based on opinion, often professional, but overall lacking academic rigour and scientific validation. Overall 528 articles were identified with the term Intelligence Economique (Competitive Intelligence) in the title, illustrating that this global topic has created a lot of interest in France.

What is a healthy attitude towards Competitive Intelligence for an SME manager?

He or she certainly has plenty of scope to express an opinion and to quite a rich crowd: governments, chambers of commerce, consultants, IT vendors, employees, suppliers, competitors, perhaps even, researchers. The most important point is perhaps to take ownership and to personalise ones approach to how information should be collected, analysed, and ultimately used. A business is all the more unique when it is small; it is the reflection of the owner/manager. Strategy is personality driven. An outsider is poorly placed to advise you on your needs.

We all have to adapt to our environment and perhaps it is true that SMEs have moved slowly to the modern, technology led, increasingly intangible information economy. Many SMEs were slow to see the advantages of personal computers in the 1980s; the Quality Management era of the 1990s was customer led in SMEs, not managerially inspired. We live in an era whereby governments have woken up to the SME economic contribution; however, government approaches to assisting SMEs with Competitive Intelligence must recognise that it cannot be prescribed. A business, especially a small one, is the vision of the founders on how to create value for identified customers. From that basis, governments need to focus on two influence drivers of Competitive Intelligence: awareness and attitudes.

Governments can and do play constructive roles, notably with Competitive Intelligence awareness as this conference illustrates. For the managers themselves, attitudes will most likely be both market driven and governmentally pushed.

What then, is a good Competitive Intelligence attitude?

First, an SME manager should be taking a process view of Competitive Intlelligence recognising five phases: planning and focus, collection, analysis, communication and decision making. The manager may be taking on only the final one or any combination of all five. An effective manager will know which ones to do himself and where he needs help either internally or from providers.

Second, sensitive information must be protected and the SME manager is the arbitrator of what this constitutes; moreover he or she is aware of how proprietary information can slip or be pulled out of safe keeping.

The final piece of advice is for those who try to assist SMEs with CI concepts, not necessarily for SMEs managers themselves.

The priorities of SME managers are well known and they don't need repeating by me here. Competitive Intelligence programmes should be market driven and value creating. Awareness is necessary but Competitive Intelligence prescription is a contradiction of terms.