Numerous studies over the years have shown that most executives make decisions around strategy in relative isolation, and with little attention to the external environment. Sadly all too often opportunities are missed or lost due to a lack of good competitive insights.
Competitive Intelligence can create a competitive advantage by significantly improving business decision-making efficiency and effectiveness by:
- anticipating competitors’ future strategies;
- supporting your cost and/or differentiation strategies; and
- increasing your control, innovation or adaptability.
In preparation for the new financial year, I encourage you to reflect on your decision-making capability.
How effective are you at making business decisions, and how good will your business decisions be in 2019/2020?
A dear friend of mine many years ago identified seven deadly sins of business decision making that alas are all too familiar to us today. What do you think?
The High Costs of Wrong Decisions
We know that executives who place a greater emphasis on intelligence in their business decisions will be those that face fewer surprises. In fact, getting the right insights will be a key success factor for companies in this VUCA (Volatile, Uncertain, Complex, Ambiguous) world.
So why do so many executives shy away from investing in some research about a new product idea, an acquisition, or business expansion opportunity, but will happily plunge ahead with a scheme and rack up million dollar losses when it turns out to be a dud! The reasons business people make the wrong decisions, in fact, stems from a multiplicity of causes. My friends list included:
We already have all the answers – the longer someone has worked in an industry the more inclined they are to believe they know all the answers about that industry. The same applies to someone who has worked with a particular company for a long time and is immersed in that particular company’s viewpoint, read more.
If you’d like some guidance on Competitive Intelligence – email me, I’m here to help.