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Technological intelligence systems for business

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In a world of rapid technological change, the volume of technological information is increasing and is less and less valid, which forces business organizations, whatever their activity, to value information, knowledge and intelligence more and more every day as strategic resources and sources of competitive advantages that favor the analysis of alternatives and decision-making by senior management.

technological-intelligence-in-business

In this way, and given the specific characteristics of the construction industry and the commercialization of its products and services in Cuba, especially those entities that dedicate their main efforts to satisfy the growing demand of customers in this branch, and that are have raised as basic objectives to raise quality, reduce costs and delivery times, it is essential for them to design strategies aimed at achieving rapid technological progress; consequently, they must make a greater focus on Technological Intelligence activities. In correspondence with the above, a Management Model of a Technological Intelligence System is proposed that could be applied in Commercial and Business Management,of any entity dedicated to this activity and that aspires to Business Excellence, which will allow you to have an orderly, logical and coherent system to optimize information and anticipate movements and changes in the environment that may affect it, have an analytical process to transform disaggregated data from competitors, the industry and the market towards knowledge applicable at a strategic level, guarantee the opportunity of information, specifying the advantages of its implementation, the associated products and the main obstacles to its application, with the fundamental objective of improve your business management and achieve a positive impact on the quality, costs and delivery time of your products.logical and coherent to optimize information and anticipate movements and changes in the environment that may affect it, have an analytical process to transform disaggregated data from competitors, industry and the market towards knowledge applicable at a strategic level, guarantee the opportunity of information, specifying the advantages of its implementation, the associated products and the main obstacles to its application, with the fundamental objective of improving its business management and achieving a positive impact on the quality, costs and delivery time of its products.logical and coherent to optimize information and anticipate movements and changes in the environment that may affect it, have an analytical process to transform disaggregated data from competitors, industry and the market towards knowledge applicable at a strategic level, guarantee the opportunity of information, specifying the advantages of its implementation, the associated products and the main obstacles to its application, with the fundamental objective of improving its business management and achieving a positive impact on the quality, costs and delivery time of its products.guarantee the timeliness of information, specifying the advantages of its implementation, the associated products and the main obstacles to its application, with the fundamental objective of improving its business management and achieving a positive impact on the quality, costs and delivery time of their products.guarantee the timeliness of information, specifying the advantages of its implementation, the associated products and the main obstacles to its application, with the fundamental objective of improving its business management and achieving a positive impact on the quality, costs and delivery time of their products.

1. INTRODUCTION

The increasingly intense competition, the need to reduce the execution times of the Projects or businesses, the costs and the increase in the quality of the products associated with them, are a consequence of the rapid technological progress that characterizes the current times. As a result, companies have been forced to make great efforts aimed at obtaining competitive advantages; These efforts have undergone a notable transformation, noting the need to be able to take advantage of the information referring to the scientific and technological activities of the environment, as well as to identify with rigorous precision and advance the one that must be used in each Project, contract and particular moment.

In this sense, Gerybadze (1994) and Rothwell (1992) argue that in the formulation and implementation of strategies it is essential to deepen the information exchange process. Undoubtedly, it is important to understand that in order to compete in the current conditions, reliable and timely information systems in the technological environment acquire a key dimension to guarantee proactive responses to the changes that are generated in the short and medium term with their logical impact on the organization and your Projects. It is important to avoid the reactive style that characterizes many of our entrepreneurs.

Organizations that wish to ensure or improve their competitive position must begin with the most efficient and effective conception, definition and execution of their Projects - understood as such, any activity that has a beginning, an end and requires certain resources to be carried out in a determined time and with a specified or agreed quality-; consequently, they must increasingly value information, knowledge and intelligence as strategic resources and sources of competitive advantages. This forces business leaders or Project Teams to know how to differentiate the key concepts of: data and information, knowledge and intelligence. It is important to understand that intelligence favors the analysis of alternatives, based on data and information so that management can make decisions. For this,Faced with the global phenomena of hypercompetitiveness and hyperinformation, Organizations need to strategically monitor all relevant aspects that arise in their business, commercial or any other environment and process and interpret them properly and finally make it available to those who need their knowledge.

In this way, it is unquestionable that in the execution of Projects or businesses to achieve true competitive advantages, technology is increasingly a relevant factor, which implies that a greater focus is made on Technological Intelligence (IT) activities or Competitive Intelligence, as it is also called (Rodríguez and Escorsa, 1998).

Technological Intelligence has been defined as “an analytical process that transforms disaggregated data from competitors, industry and market, towards knowledge applicable at a strategic level, related to the capabilities, intentions, performance and position of competitors” (Bernhardt, 1994). In other words, the importance of carefully identifying information needs, selecting the most appropriate sources, rigorously analyzing the results and, above all, transforming them into a useful product at a strategic level is evident.

It is important to note that despite the fact that some intelligence activities have been developed for several years, it is from the 80's that in advanced industrial economies such as the United States, Japan, Germany, some leading companies decide to incorporate within their corporate structures to formal units expressly dedicated to Technological Intelligence. However, it has been widely disseminated, considering that this important activity "is still in its infancy", which is basically explained by the confusion that exists in identifying the difference between information and intelligence. Furthermore, the methodologies that have been designed and applied in this regard show great variability, not having reached a universal conception.

In this way, the objectives of this work have been set:

  • Propose a Management Model of the Technological Intelligence System that can be applied to the commercial and business management of any entity to achieve a positive impact on its integral management, on the quality, costs and the execution period of its Projects or contracts. Specify some of the main products to be obtained with the application of the Model. List some of the main advantages of its application and the obstacles to overcome.

2. Objectives of a Technological Intelligence System (SIT).

Some fundamental objectives that derive from a Technological Intelligence System (Mc Carty et al, 1997), are shown in Figure 1.

Figure 1. Objectives of a Technological Intelligence System.

The usefulness of this product has been interestingly summarized by Porter (1995) as follows: “Give the right information to the right person, at the right time, to make the right decision”. In this way, intelligence must be based mainly on identifying signals at the right time, in order to give those who decide the possibility of taking proactive measures, when the evolution of a future trend is still no more than a barely perceptible observation. Therein lies the importance of turning information into intelligence.

3. The contribution of a Technological Intelligence System.

At present, organizations need to know what is happening around them because it is not an isolated entity, on the contrary, it is evident that everything that happens around them, as a consequence of the logical interactions that occur in their environment, determine largely its competitive position. Then, it is necessary that they have a system of strategic analysis of the information that allows them to anticipate the movements that may affect it, allowing them to quickly detect opportunities for improvement through the adoption and development of new technologies, strategic alliances, expansion of market or other ways. This information will generate innovation and development when it is converted into knowledge through analysis and selection, which will allow direct action to be taken.

Some of the main products derived from a Technological Intelligence System are shown in table 1.

Table 1. Products of the Technological Intelligence system, key customers and frequency of production.

Products

Description

Key clients

Frequency

Technology strategy report

It is prepared for each group and is used as a key input in the technology planning process and determination of the technology budget.

Planning coordination of Headquarters and branches

Annual (delivery at the beginning of the second quarter)

Technological Summary

Includes relevant aspects, events, key issues and implications of each group.

Technical and business staff of the Headquarters and branches.

Depending on the grouping and the circumstances, one or more times a year.

Planning cycle report It deals with the technical environment and its impact on the Corporation. It is used in corporate planning. Coordination of Strategic Planning. Annual (delivery at the beginning of the year)

Electronic billboard

Contains various IT documents, patents, event information, etc. It is freely accessible to the entire Corporation.

Technical and business staff of the

Continuous Corporation. It will depend on the interest of the participants.

Technological Alert It is prepared according to a specific requirement to take action in order to take advantage of an opportunity or face a threat. It is distributed online, or on paper by inter-branch mail Business planners and managers of the Corporation By individual request or initiative.

Professional Communications Informal interpersonal communication via email from the Corporation Business planners, managers, and technology staff throughout the Corporation Continuous. It will depend on the interest of the participants.

IT Articles Technical publication that collects the results of the research carried out. Business planners, managers and personnel of the Continuous Corporation.

In the Strategic Management of Technological Intelligence, information plays a transcendental role, so it must be clear that obtaining information is one thing; Whereas obtaining the correct information, transforming it into a product of strategic value, distributing it to the people in the appropriate ways and at the right time, and ensuring that it is used correctly, are very different things.

At present, despite the fact that many organizations appear to follow an "intelligence process", in reality they do nothing other than carry out isolated activities to obtain information, or simply hire brilliant professionals who transmit information which does not reaches the top address; consequently, you fall into a passive wait for someone to make a decision. Many of these organizations base their "intelligence work" on what is really a "traditional exploration" of the external environment (Escorsa, 1995) consisting of the conversations that businessmen have with their clients and suppliers, attendance at fairs, analysis of the competitive products, review of technical journals and other forms, which do not become an orderly system,logical and coherent work, which involves carrying out legal activities in order to know how to optimize the information; that is, specify the information requirements to be obtained, in strict correspondence with the objectives and characteristics of the organization and its environment, what analytical tools should be used in order to obtain useful results for the design of the strategy and the decision of decisions, which allow actions to be taken to anticipate changes, with quick responses in order to identify opportunities and, consequently, improve competitiveness.in strict correspondence with the objectives and characteristics of the organization and its environment, what analytical tools should be used in order to obtain useful results for the design of the strategy and decision-making, which allow actions to be taken to anticipate changes, with quick responses in order to identify opportunities and, consequently, improve competitiveness.in strict correspondence with the objectives and characteristics of the organization and its environment, what analytical tools should be used in order to obtain useful results for the design of the strategy and decision-making, which allow actions to be taken to anticipate changes, with quick responses in order to identify opportunities and, consequently, improve competitiveness.

Seen this way, it is evident that the scope of an Intelligence System is greater than that of a traditional monitoring of the environment, because although it is commonly passive in nature, the former comprises the audit of information needs, seeking a high connection with the environment. client, and even with the end user, defining the most appropriate means to use to obtain the information, determining what and to whom, how, where and when to resort, what type of analysis should be performed, in what format and in what time The results must be transmitted (sense of urgency and opportunity), but above all, determine how to incorporate the results of the intelligence process into the strategic planning of the organization's activities.

4. The strategy, the technological plan and the SITs.

Some of the basic processes for which technological intelligence represents a valuable support for the elaboration of the technological plan of an organization or the elaboration and execution of a Project are:

  • Provide timely knowledge about technical developments of technological movements that could cause positive or negative impacts on the success of the organization or the conception, definition and execution of its Projects and businesses Identify new Projects, businesses or products, as well as the variation of the processes linked to these and the opportunities for collaboration for their successful development Understand and specify, in a general sense, the implications of technical events, congresses, seminars, colloquia, and trends in its competitive environment for strategic decision making.

The important role of intelligence in the formulation and implementation of an organization's strategy, in a general sense and, in particular, the one that it will apply to the different Projects and businesses it executes, will be explained based on:

  • The description of the competitive environment. It allows defining the competitive environment in which the organization is immersed. This study, combined with that carried out by the marketing department - both are different in scope - makes it possible to define a "competitive response model". The prediction of the competitive environment. It contributes to predicting the behavior of the market, a business line of the organization or a technology. The change in the assumptions that affect the strategic direction of the organization and the Project or business. It allows to check if the perception that has normally been had about an event continues to be valid (economic, political, social, technological, market, customer and other aspects). Identify and contribute to the compensation of weaknesses.It allows to determine and evaluate the own weaknesses and vulnerable points of the organization and its Projects or businesses. It is intended to prevent weaknesses from becoming feasible vulnerable points of attacks by the competition. Use intelligence in order to implement and adjust the strategy to the changing conditions of your competitive environment. It allows to validate the effectiveness of the strategy applied at all times, detect and initiate the necessary changes to offset possible attacks from the competition, and determine in a timely manner when the strategy is no longer sustainable. Once the strategy is implemented, it must be subjected to systematic monitoring to evaluate its effectiveness. When important changes arise in the environment with their logical impact on the organization,It forces you to make modifications to it and detect whether or not it is sustainable.

5. Some advantages derived from the application of the SIT.

Now, it would be appropriate to present some of the advantages, in addition to those mentioned above, through examples related to the application of Strategic Intelligence Systems, reported by Ashton and Stacey (1995) and Ashton, Kinzey and Gunn (1991), due to its high level of implementation in Project or Business Management:

  • Identify potential technological threats that may harm market share and the well-being of the company or business unit, in the short, medium and long term Identify opportunities to invest in technology, including commercialization Incorporate new technological advances in the execution of Projects, businesses and the processes linked to them, to raise the quality of products Help determine the strategy for internal R&D programs Cancel promising scientific and / or technological projects Identify possible collaborating organizations for development of scientific and technological activities related to the organization and its Projects or businesses. Provide technical data and information services and develop / maintain a technological culture.Identify technological and market trends.

6. The cycle of Technological Intelligence.

Ashton and Stacey (1995) and Ashton, Kinzey and Gunn (1991), developed a methodology to carry out Technological Intelligence, obtaining positive results for making strategic decisions in the companies studied by them.

Similarly, Martinet and Marti (1995), designed a methodology to implement an intelligence system in the organization; This, applied in France, one of the pioneer countries in monitoring the technological environment, allowed to obtain highly satisfactory results.

The author, after reviewing the literature at his disposal in relation to these issues, and incorporating his own experience during several years of research in this regard, recognizes the extraordinary value and contribution of existing methodologies and estimates that the main activities to be carried out may be grouped into four major stages, which form a closed cycle with their corresponding interfaces. In this way, it proposes the scheme shown in figure 1.

The knowledge, selection and verification of the source of information in correspondence with the type and depth that it is required at a given moment, is extremely important when managing a Strategic Information System. For this reason, Table 2 lists some of the main sources that can be used successfully, and it is important to note that each of them will have a relative importance depending on the specific objective that in each case it is intended to be achieved.

Figure 1. Technological Intelligence Cycle and main associated activities (Luis, 1998).

Table 2. Some important sources of information.

7. System structure.

The definition and decision of the structure of the system is an extremely important step in the Strategic Management of Technological Intelligence Systems. Thus, two types of structures are generally referred to: centralized and decentralized.

In the centralized structure, the IT activity will be carried out by a central body that would adapt and / or be created for this purpose. It is common in companies related to the information technology and telecommunications sectors since technological changes are quite rapid and radical; consequently, they must be followed closely for elementary and objective reasons of survival.

In the decentralized structure, the responsibility for carrying out the IT activity would be shared by companies and business units. It is characteristic of organizations belonging to industrial sectors, since technological changes are relatively slow or gradual and the introduction of technology occurs in a reasonable time.

In the author's opinion, taking into account the characteristics of the construction sector and the commercial entities associated with it, it seems more reasonable to adopt decentralized structures, even though certain activities such as computing or others may be centralized at the time that may be required by certain strategic approaches, interest or importance of them. This is also supported if we take into account the factors related to the maturity of the technology in this sector. This scheme, especially in those entities that have different subsidiaries or branches and a parent company, as is the case of corporations, joint ventures, or other associations that respond to this scheme,They also represent savings in investments by not requiring the creation of a separate centralized structure.

In these cases, it is advisable to appoint professionals from the different areas, divisions or technical departments in these subsidiaries or branches, as the case may be, as technical liaisons responsible for coordinating and facilitating intelligence activity and interacting with organizations on technological matters.. This option allows to maximize the exchange of technical knowledge and behavior and analysis of the market, its businesses and the progress of marketing and sales throughout the organization.

Four key aspects to be taken into account by organizations that intend to establish a SIT are:

- Determination of key customers and decisions affected by technology.

- Identify the key aspects to be investigated.

- Develop research strategies of the key aspects.

- Execute the strategies and integrate them into the decision-making process.

Other important elements that must be carefully analyzed and applied permanently are:

- Need to share information.

- Handle information confidentially.

- It should be borne in mind that information is currently considered as an element of competitiveness for companies.

- It is necessary to know "who is who" internally and externally.

- Communication with the various contacts that make up the organization's information network must be regular, in order to nurture and update the source of information.

- A permanent strategy of continuous expansion of the information network must be drawn up.

- For the extension of the information network, existing controls can be used.

- Establish a deep sense of mutual credibility between the organization, its clients and contacts that make up the information network.

- Verify constantly and permanently any information provided by the contacts.

- Identify and locate experts through the systematic use of literature.

8. Some final considerations

It will be interesting to list the main difficulties that companies that intend to link their activity to SIT Management have to overcome, and which must be evaluated by them to identify their own. These will be grouped into four fundamental levels:

1. Cultural

• Little innovative culture.

• Reluctance to change.

• Little awareness about the implementation of the changes that arise in the external environment of the company.

• Perception of infallibility in the face of external scientific and technological events.

• Limited recognition of the value of strategic information, tendency to extremes: information overproduction or underuse.

• Insufficient communication and collaboration between areas, as well as with the outside environment.

• Null or inadequate development of communication patterns between providers and recipients of information, for the detection of needs and subsequent feedback.

• Individualism: opposition to what other areas do and within the Project Team itself.

2. Organizational

• High ranking. Little horizontal communication.

• Bureaucracy.

• Little integrated structures.

• Subordination of functions.

• Scarce designation of responsibilities in obtaining, analyzing and protecting scientific and technological information.

• Little infrastructure to support intelligence activities.

• Structures that hinder communication between the company and its external environment.

• Not having a Quality System

3. Management

• Lack of a system of awareness and training in strategic management.

• Little orientation towards the application of opportune methods for detecting threats and opportunities in the environment.

• Lack of methods to protect information.

• Little attention to the strategic management of technology and technological intelligence and the creation of a Technological Intelligence System.

• Procedures that hinder the integration of the Project, with the innovation and development of technologies and the strategic decision process.

• Not incorporating quality management as part of the strategic management of its Projects.

4. In resources

• Scarce availability of economic resources to invest in new technologies and in management systems, training of personnel and their motivation, stimulation and compensation.

• Few knowledge assets, few capacities to assimilate and transform new technologies, produce innovations in products, processes and / or strategic management systems.

• Weak infrastructure to generate new ideas, encourage creativity and generate innovations.

• Little value to human resources, forgetting that the image of an organization is given by the image of its human resources.

In general, these companies must ensure that their key personnel maintain continuous contact with external sources of information, thus having a greater chance of achieving success in highly dynamic technological environments. Undoubtedly, the greater the degree of communication between the company and its environment, the more effective the company will be in generating, developing, and implementing innovative products and processes, and the greater its competition will also be.

The managers of these companies cannot ignore the principle that obtaining information is one thing; While obtaining the correct information, transforming it into a product of strategic value and distributing it to your staff in an appropriate way is another.

For this reason, the managers of these companies need to know what is happening around them because it is not an isolated entity, on the contrary, the interactions that occur in its environment largely determine its competitive position.

Thus, it is necessary that they have a strategic information analysis system that allows them to anticipate movements that may affect their well-being and detect opportunities for improvement through the adoption / development of new technologies, strategic alliances, expansion market or other forms.

Finally, these companies must be able to:

  • Identify potential technological threats that may damage their market share and well-being, in the medium and long term Identify opportunities to invest in technology and training of their personnel Incorporate the advances of Science and Technology Deepen, specify and determine their strategy for internal R&D programs Cancel non-promising projects Identify possible collaborating organizations for the development of scientific and technological activities Provide technical data and information services to its staff Develop and maintain a culture of technology, quality and innovation Identify technological trends.

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Technological intelligence systems for business