DATE=7/29/1999
TYPE=BACKGROUND REPORT
TITLE=CORPORATE INTELLIGENCE
NUMBER=5-43978
BYLINE=BRECK ARDERY
DATELINE=NEW YORK
CONTENT=
VOICED AT:
INTRO: Spies have been gathering intelligence for
governments for centuries. Now, as VOA Correspondent
Breck Ardery reports from New York, there is a growing
use of intelligence experts in business.
TEXT: Just as nations are at a disadvantage when they
do not know what their rivals are doing, businesses
can have serious problems without extensive knowledge
of the competition. The desire for accurate and timely
business intelligence has spawned a new specialty in
the consulting business.
John Nolan is Chairman of the Phoenix Group, a firm
that concentrates on gathering information for its
corporate clients. Mr. Nolan, a former intelligence
officer for the U-S government, says a usual starting
point in any intelligence operation is the gathering
and analysis of publicly available information.
///Nolan act///
We go about that increasingly by using the
internet and receiving clippings from
subscription services and then analyzing what
these various pieces of information tell us about
the project. Sometimes we can satisfy most of
what we need to know by what is publicly
available. We are also able to increase our
understanding of the specific business
environment better than we did when we started.
///end act///
However, Mr. Nolan says publicly available information
has a serious limitation because some of it may be
outdated or unreliable. In most assignments, he says,
it is necessary to talk to people with direct
knowledge of the company he is investigating. Mr.
Nolan says a surprising number of current and former
employees of a business are willing to talk. In some
cases, Mr. Nolan and his associates will disclose who
they are and why they are asking the questions. In
many instances, however, a ruse will be adopted such
as pretending to be a potential customer or employer.
He says there are several ways to find people who are
willing to talk.
///Nolan act///
We go to a chat group on the internet. For
example, we could put in a search criteria
looking for Dell Computer and electrical
engineering. We might find 12 people who now work
or recently worked at Dell computer. Then we
search for their names somewhere else and may
find they are also involved in backpacking or
sailboating and perhaps through that interest we
will develop a relationship with a person. That
is just one example. We also attend professional
meetings, survey literature and examine
organizational charts that always give us sources
of information.
///end act///
John Nolan says his firm, and all legitimate corporate
intelligence consultants, draw a firm line against
committing any illegal acts such as burglary,
wiretapping or bribery. But, even if they operate
entirely within existing law, some critics say
corporate intelligence experts do engage in unethical
behavior, especially when they use false identities to
obtain information.
In addition to gathering information about a company's
future product or marketing plans, Mr. Nolan says
intelligence consultants often design psychological
profiles of top corporate executives.
///Nolan act///
We produce psychological profiles of corporate
leaders much as we did those of foreign leaders
when we worked for the government. We get our
information from former superiors, former and
present peers, people he plays golf with or
serves on charitable boards with or people from
his university days. Then, we give a prediction
of the way a person will act in a merger or joint
partnership agreement.
///end act///
Of course, the other side of gathering intelligence on
business competitors is advising a business on how to
keep its confidential information confidential. Mr.
Nolan says one critical step that companies should
take is to limit the number of people who have access
to confidential business information.
///Nolan act///
Let us say that I know something very sensitive
and I talk about it to my friend Bill in another
department, not because he needs to know it but
just because he works for the company. Now, say
you start talking with Bill, well he does not
have the same understanding of protecting the
information because it has nothing to do with his
job. He may feel that if I shared the information
with him, it is o-k to share it with you.
///end act///
Mr. Nolan says companies can also try to create a
culture in which employees are careful about what they
say and to whom they say it.
John Nolan expects the business of business
intelligence gathering will continue growing as more
companies realize that knowledge is power and often an
important competitive tool.(Signed)
NEB/NY/BA/LSF/PT
29-Jul-1999 17:53 PM LOC (29-Jul-1999 2153 UTC)
NNNN
Source: Voice of America
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