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INTRODUCTION
In war, military commanders are taught how to use intelligence estimates to gain the competitive edge over their opponent. They are trained to identify the critical intelligence that will best help them understand their opponent's strengths, weaknesses, and battle plan in order to predict future actions.
The collection, processing, evaluation, and communication of military intelligence has been refined to an art form. The military has developed a systematic approach to translating the commander's intelligence needs into a logical and practical intelligence collection plan. The plan's purpose is to organize the various intelligence gathering, processing, and evaluation resources so that this "want" list is filled in the most efficient and effective manner. Intelligence data are quickly and efficiently transmitted from every likely line or staff element to a central location where the pieces are carefully placed into the jigsaw puzzle and a clear picture emerges.
This formal intelligence organization is supplemented by a counter intelligence organization responsible for ensuring that the opponent's intelligence efforts come to naught.
This same pattern is also practiced by nations that form and fund national intelligence services, such as the CIA, in support of foreign policy decision-making and other legitimate governmental functions.
BUSINESS INTELLIGENCE ACTIVITIES
American and foreign businesses have started to embrace the military model of intelligence gathering and evaluation activities. They have begun either to employ business intelligence contractors or to internally organize formal elements whose primary mission is to gather, analyze, evaluate, and disseminate business intelligence. The results of such activities are being made available to business managers to support business decisions, plans, and strategies (for more discussion, see Zinkhan and Gelb, 1985; Konstadt, 1990; Scholssberg, 1990; and Meyer and Pincus, 1990).
Current estimates indicate that activities related to business intelligence bring in approximately $250 million of revenue a year to private investigators. Firms that specialize in the acquisition and analysis of business intelligence now produce annual revenues of $500 million per year (Mangan, 1988). Bob Marguiles, competitive assessment manager for McDonnell Douglas Corporation has estimated that more than 10,000 people work in the field of competitive intelligence, many of them in marketing or financial departments (Stogadill, 1990). Of greater interest, however, is the statistic that U.S. business losses from corporate espionage are now estimated at $50...