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Business Intelligence (BI) allows companies to minimize risks and surprises, which is a major advantage. Missed earnings, regulatory enquiries, and the like; usually result from unpreparedness or the inability to recognize red flags. Due to this fact, a significant portion of BI tools seems to aim at capturing any signs of an impending danger.
Marketing can also create new opportunities due to unexpected events. For example, text messaging came as a surprise to attract new and different users. It has proven particularly effective among hard-of-hearing people.
This article further examines how companies can use business intelligence to avoid risks and spot unexpected opportunities, uncover hidden customer segments, and turn market surprises into lasting growth advantages.
Moving Beyond Traditional Competitive Intelligence
Organizations face challenges in applying business intelligence due to entrenched habits in marketing and management, as well as psychological, cultural, and political factors.
Why Companies Miss Emerging Opportunities
Business intelligence provides insights that can change executives’ understanding. The 80/20 rule, also known as the Pareto principle, was introduced by economist Vilfredo Pareto. It states that 20 percent of customers make 80 percent of the sales. Dr. Joseph Juran employed this concept, demonstrating that 20 percent of flaws lead to 80 percent of the problem.
Customer segmentation is vital for marketing. It helps companies keep their most profitable clients. However, the 80/20 rule mainly focuses on existing customers and may miss potential customers in emerging segments with future growth opportunities.
Spotting Weak Signals Before Competitors Do
Weak signals are small signs that suggest changes might happen soon. These signals can affect how your organization operates, its business plans, or the competitive landscape. Organizations that quickly notice and respond to these signs can gain a strong advantage over their competitors. However, innovation teams may miss these opportunities if they lack a clear way to identify these signals and use what they learn from them.
Overcoming Cultural and Political Blind Spots
Effective leaders focus on a clear vision for their company, ensuring it resonates with employees. However, visions can become outdated, leading to blind spots in the organization—making blind spot analysis a valuable strategic tool.
Using Surprise to Outmaneuver Market Leaders
Historically, surprises have played a crucial and disruptive role in business. 92% of middle managers at Fortune 500 companies faced unexpected events impacting their market positions. Executives often overlook early signs of surprises due to their beliefs, leading to significant mistakes.
For example, Johnson & Johnson initiated the Cypher drug-coated stent in April 2003, which is better than bare metal stents. However, they misjudged demand and encountered regulatory hurdles. Consequently, they experienced inventory problems and high price inflation, which frustrated the customers. Meanwhile, Boston Scientific took advantage of J&J’s issues, capturing 70 percent of the drug-coated stent market by March 2004.
Finding unexpected knowledge can give a competitive advantage. The Reebok company commenced with high-priced athletic footwear for men at the highest level and joined the United States marketplace in 1979. They brought out the first female athletic shoe for aerobic dance in 1982 and reached urban women with a new casual line. In the year 2000, they had become a global fitness trend.
Tracking Everyday Customers Who Drive Influence
As per the above-mentioned Pareto rule, marketers should focus on the top 20% of frequent users who generate most revenue while also valuing the remaining 80% of customers, who can provide additional opportunities. For instance, closed captioning, initially for the hearing impaired, now serves English learners and is widely used in noisy places like gyms and airports, revealing new market prospects.
Celebrity endorsements can significantly boost a product’s visibility and sales. For example, when Lance Armstrong was seen using a BlackBerry on TV, it sparked interest among fans. Companies that leverage customer data to identify influential figures in their markets find it easier to broaden their audience and enhance engagement.
Mining Service and Usage Data for Innovation
Customers will always seek solutions to their problems, regardless of the provider. Companies that prioritize value and bridge unmet market needs can discover unique opportunities for value innovation.
Co-Creating Products with Customers and Communities
eBay began as an online auction site for collectors but expanded into used car sales, partnering with AutoTrader.com to launch eBay Motors in April 2000. By December 2001, it became the most popular automotive website. In January 2002, eBay introduced its Assurance Program, offering warranties for offline transactions. The company followed its consumers’ needs, so it was able to see growth from unconventional customers within their 20% revenue segment.
Learn from Market Pioneers to Deliver Smarter Solutions
Looking at products from the customer’s point of view can reveal new market opportunities and ways to improve offerings. Being the first to market can be appealing, but later entrants can learn from those first movers and create better or cheaper alternatives.
Accor, a French hotel chain, is a great example of their introduction of Formula 1 low-cost hotels. They provide clean and cheap rooms mainly through attention to customer needs and doing away with expensive things. Consequently, Formula 1 was to be ranked as the biggest hotel chain in France, exceeding the combined top five leaders.
Use Digital Communities to Spot Trouble Early
Fan-created online communities or groups created by businesses to support their customers serve as a form of early warning system. They help identify the emergence of challenges and changing customer opinions. The observation of such digital arenas assists firms in detecting flaws in products or services or danger to the company’s public relations prior to blowing out of proportion.
For example, Apple searches sites such as MacRumors and iFixit to identify hardware and software issues, which results in faster repairs or recalls.
To develop new products, LEGO interacts with its adult fan base community on fan websites via a LEGO Ideas site.
Taco Bell monitored Reddit and Twitter for reactions and replies to menu changes, such as the popular Mexican Pizza returning to the menu.
Harness Grassroots Creators for Brand Momentum
Customers can be influential advocates for brands daily, often more so than celebrities. Their enthusiasm and creativity can significantly shape marketing strategies. For instance, Dyson engaged YouTube creators who specialized in using their vacuums for pet grooming, gaining valuable insights for product improvements.
Similarly, indie makeup artists on TikTok and Instagram have driven viral trends for e.l.f. Cosmetics’ affordable concealers and highlighters that prompt the brand to adjust production and fast-track complementary product launches.
Spot Emerging Needs in Your Operational Data
Data from connected devices and customer interactions provides insights into product usage, helping companies develop new features and services.
For instance, Peloton discovered users preferred shorter, high-intensity workouts, which led to adding 5 to 20-minute classes and meditation sessions, which boosted user engagement.
Similarly, Tesla leverages driver data and community feedback for software improvements through over-the-air updates, enhancing self-driving and entertainment features without requiring service center visits.
Build Innovation Communities That Scale
Innovative companies involve customers in product development, fostering valuable insights and loyalty. For instance, Threadless lets users submit and vote on T-shirt designs, minimizing uncertainty and inventory risks while building a dedicated customer base.
Similarly, Unilever’s Idea Kitchen engages employees, suppliers, and consumers, creating successful products like unique Magnum and Ben & Jerry’s ice cream flavors.
Watching Adjacent Markets for Breakthrough Ideas
Breakthroughs that change industries often come from related or unrelated fields. Businesses can find new opportunities by looking at product trends in similar markets. For example, Netflix studied the rise of digital music on platforms like Spotify to improve its content personalization and increase customer engagement.
Similarly, Procter & Gamble looked into health technology wearables to create smart toothbrushes and skincare devices that connect to mobile apps for personalized care.
Conclusion
In fast-changing markets, businesses that rely only on traditional forecasts and established competitors may get caught off guard. Business intelligence helps organizations anticipate change by spotting early signs, new customer needs, and unexpected market players. By looking beyond current rivals and loyal customers, companies can discover new opportunities, create unusual partnerships, and quickly adapt their strategies when surprises happen. To stay competitive, companies must make business intelligence a cultural habit, not just a tool. Those who treat surprise as a signal, not a setback, will be best positioned to grow.
