Competitive Intelligence and Analysis Paralysis

The repository of all truth and knowledge, Wikipedia, defines Analysis Paralysis as “an informal phrase applied to when the opportunity cost of decision analysis exceeds the benefits. Analysis paralysis applies to any situation where analysis may be applied to help make a decision and may be a dysfunctional element of organizational behavior.”

For the past few posts, I have tried to make a strong case for using competitive, sales and market intelligence at the highest levels of a business to effect change and create a stronger market position. While intelligence is key to making the right moves, every decision-maker has to employ methods of evaluating intelligence and interpreting it based on the entire market picture.

Information is ubiquitous. Analysts tell you their opinion. 3rd-parties produce prodigious amounts of intelligence. Emails, RSS feeds, newsletters, web scrapers, financial reports, word of mouth, and dozens of other sources never stop producing “must-have” information. And, much of this information contradicts (partially or entirely) information from other sources.

So, how do you overcome Paralysis by Analysis? Let’s look at a few points that should help clear the logjam and get the business decision-making process back on track:

1. Define what success looks like for your company. Create initiatives that support the plan.


2. Concentrate on what you really want to know - Are you concerned with increasing market share or do you want to know the competition’s proprietary commission structure? How much will knowing the square footage of your prime competitor’s new warehouse in Des Moines help you attract new business and partners? Figure out what really matters.


3. Ignore intelligence that doesn’t support your initiatives that support success. The rest is distracting fluff at best. We all know that taking your eyes off the road to text-message is a recipe for disaster. Don’t take your eye off the ball, no matter how intriguing a data source may be.


4. Create a weighting system to deal with the intelligence that remains. Make sure that the critical intelligence supports or protects your success goal. If it doesn’t, categorize it as “interesting, but not essential” and move on.


5. Employ or contract with an analyst to help interpret the intelligence that is considered valuable.


6. Make a decision, move forward and refine your direction – Most of the time, moving in a direction is less harmful than staying put. And, if you are using the right kinds of intelligence, a bad decision will likely stub your toe before you crash into something dangerous.

For more information, I recommend an article by Michael Useem, Wharton School of Business. In his article, he comments, “A less than ideal action stands a chance of success, whereas no action stands no chance.”

Well said.

Good luck sifting and prioritizing. Intelligence is important and essential, but too much of a good thing can create big problems.

As always, if you have thoughts, leave me a post, call (801-838-9600 x5050) or email (cdalley@primary-intel.com)