I Spy... competitive intelligence or industrial espionage?

Industrial espionage, or ‘spying’ as it more commonly known, is carried out for commercial purposes rather than those of national security.  Many people think that this type of activity is restricted to Hollywood blockbuster films, but in the real world, industrial espionage can be big business.

 

"Good information can make the difference

between success and failure to any business"

 

Companies want to know what their competitor’s next product is, the motivating factor being that they can dominate the market if they are the first to establish a new product.  Good information can make the difference between success and failure to any business.

Any successful business has to have at least one eye on the activities of their competitors. One method of achieving this is by using competitive intelligence.

This is a legal and ethical method of systematically gathering, analysing and managing information on commercial competitors. It involves gathering information from (open) public sources and may include activities such as examining newspaper articles, corporate publications, websites, patent filings, specialised databases and information at trade events, to obtain usable information on a competitor.

Competitive intelligence has its roots in market research, but it essentially applies the same principles and practices as military or national intelligence; albeit to the national and global business market.

Industrial espionage is slightly different in that it is to acquire knowledge about a commercial organisation. The difference is the type of information acquired and the methods used to gather it. This could include acquiring intellectual property, such as information on industrial manufacture, ideas, techniques and processes, recipes and formulas.

It could also include appropriation of propriety or operational information, such as customer data, pricing, sales, marketing, research and development, polices, prospective bids, planning or marketing strategies or the changing compositions and locations of production.

We’ve all read about the phone hacking scandal with the News of the World. This can be applied to trying to find out trade secrets of companies. Bribery of an employee or person with legitimate and uncontrolled access to the target organisation is also a common method as is blackmail and electronic surveillance (bugging) and mobile phone hacking. If a trade secret is stolen, the competitive playing field is somewhat levelled or tipped in favour of a commercial competitor.

Although much information gathering is accomplished legally via competitive intelligence, at times some corporations may feel the best way to get information is to take it ‘by any means. Industrial espionage can be a real threat to any business whose livelihood depends on information. The mobile revolution has changed the ‘game’ somewhat.

 

"If you conduct business in inappropriate places, then expect somebody

to listen in on what is taking place."

If you work on company documents in a public place then you must expect that someone, possibly a competitor or their ‘agent’, may well be paying attention over your shoulder at your companies secrets or its commercially sensitive information.  Carrying out business in public makes surveillance of your activities legal, ethical and so much easier than it used to be.

If the person sitting at the next table in a restaurant, supplies what he sees or hears to a competitor, you cannot possibly complain as you gave away the information, and a competitor will most definitely use it to their advantage.

The key is to be aware of your surroundings, and to keep business, where possible, in the business place. You never know who could be sat next to you!

Ray Castlehow
Director
North by North West Investigations




 

For further information on competitive Intelligence and related issues please contact Ray Castlehow of North by North West Investigations, specialists in business intelligence and security.

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