Competitive intelligence professionals move from dependence to independence before reaching complete interdependence stage. At the same time information management evolves from a centralized to decentralized policy before power networking becomes a reality. The environment sinks into chaos with increasing demand for homeostasis and a defensive resort to group think. Conformity becomes a disadvantage at this time. The competitive intelligence professional must respect prevailing group opinion while advancing the case of cultural diversity and change to nudge management from their comfort zones.

Critical thinking skills are crucial to competitive intelligence professionals. The ability to analyze is particularly important. Reasoning is a process that links analysis to conclusions, bringing an answer to the strategic questions asked by the executives.

1- THERE IS A PARADOX BETWEEN WHAT EXECUTIVES SEEK AND “INFORMATION” REALITY.

To cope with uncertainties, executives need linearity, stability, predictability, order and control in a world dominated by complexity, systemic thinking, interdependence, disorder and change. They seek a “social order” to perform and maintain normal change in the internal environment, to cope with uncertainties, adapt to external change and create internal conditions that will allow the organization to continue to live, function and grow properly.

2- THE GOAL OF COMPETITIVE INTELLIGENCE PROFESSIONALS IS TO RESTORE “HOMEOSTASIS”

The term “homeostasis” is used by physiologists to mean maintenance of constant conditions in the internal environment. The different functional systems of the body contribute to homeostasis through control mechanisms, adaptive systems and autonomic control.  Competitive intelligence professionals seek to restore “homeostasis”, bringing clear answers to external variations, trends and clues anticipating the future with little, if any, tolerance to failure. Their main contribution to group performance is to help adjust the internal environment to external change. This can be done through the capture of raw data (input), its conversion into added value information, in a form that is more meaningful and “actionable” (processing), and finally the distribution of the processed information to the people or activities where it will be utilized (output). By helping executives analyze problems and visualize complex subjects, competitive intelligence professionals create value and competitive advantage.

3- THE CHOICE BETWEEN “ACCEPTABLE” AND “ UNACCEPTABLE” CONCLUSIONS

A broad open- minded approach to different problems is needed if competitive intelligence professionals wish to attain credibility and understand how the component parts of an issue relate to the whole. Sometimes the final report conforms with the organization’s vision of the future and is “acceptable” even with contradictory viewpoints. But what happens when the result is considered “unacceptable” because its content deeply challenges prevailing ideas within the organization- when competitors chose different strategies using arguments that contradict those the experts within the organization continue to develop? “Intellectual cohesiveness” is threatened.

As Asch’s experiments demonstrated, many individuals will feel alone and upset if their contribution does not correspond to those of the group. Many will therefore yield to group pressure and clearly deny the conclusion(s) they believe to be correct. Rather than focusing on environmental patterns of change, their objective becomes to avoid the group sanctions that may vary from mild disapproval to complete rejection. Those who have a strong need for structure or certainty, those who are anxious, low in self- confidence or concerned with the approval of others will seek group conformity, adapt their conclusions to remain within the “comfort zone” where nothing happens unless in conformity with prevailing group opinion. Those among us who strongly believe in their contribution to the group’s performance will fight to implement new idea, structures and change at the risk of being denied the right to evaluate, to interpret or to judge information or data unless their interpretation strengthens the shared realities within the organization.

As shown by the dashed lines in figure 3 , “unacceptable” information will progressively isolate 1A. Information will be shared within the organization but only among those who have accepted to seek constant agreement and move within the limits of uncertainties that have been decided by the group’s leaders. If consensus is not respected, that rejection will put an end to the performance of 1A whose ideas have little if any importance to the group.

4- COMPETITIVE INTELLIGENCE PROFESSIONALS AND GROUP THINK

Group think is a the tendency of group members to seek agreement at the cost of critical thinking. The group views itself as powerful and omnipotent. It shuts out information that does not conform to increasing the pressure toward uniformity, and rejects the expression of contradictory viewpoints. Even trusted outside opinions are adapted to maintain conformity and prevail against cultural diversity. Many authors compare group think to repetitive behaviors or controlling acts that are used to reduce anxiety. These acts are intrusive, yet involuntary – although incompletely controlled.

Like ritualistic cleaning behavior, such as washing one’s hands or checking things over and over, group think is an attempt to prevent the occurrence of a feared and disastrous event, which is the failure to adapt, adopt, control uncertainty, change, and perform out of one’s comfort zone.

•  In organizations with tendency toward group think, competitive intelligence is“tolerated” if it fulfills the “ group conformity” mission.
•  In organizations with tendency toward group think, competitive intelligence professionals are encouraged to seek group approval and please others with “acceptable” conclusions.
• In organizations having a tendency toward group think, competitive intelligence professionals are invited to rely on “comfort zone leaders”. Their beliefs are typically followed without discussion or dissent, driven by the “no way back “mentality of the organization, which views no reasonable alternative other than the one favored by the “leaders”.
• To resist conformity carried to its extreme, competitive intelligence professionals must adopt a constructive attitude, use trusted outsider advisers and internal mentors and support, a positive disposition towards information sharing, analysis and synthesis. Such measures contribute added value and performance to free the organization from group think.

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Global Strategy has been involved in licensing technology from all types of organizations, such as established companies, start-ups, research institutions, government agencies and others, to and from developed and emerging markets. As business development experts, we strive to establish creative solutions that benefit our client partners. Although license agreements vary in terms and conditions, depending on the technology licensed, there are similarities in structure. The following document is an example of the typical terms of a license agreement.

Confidential Disclosure Agreements
Nondisclosure Agreements (NDAs) enable participants to communicate proprietary information for evaluative or collaborative purposes with outside investigators in industry, government and academia. NDAs establish the rights of the receiving party in their utilization of the information. NDAs provide for confidentiality for a specific scope of information and for a specific time period. NDAs may be unidirectional; that is, they cover confidential information from the party disclosing the information to the recipient of the information. If the recipient of the information finds it necessary for the disclosing party to receive their proprietary information, then bi-directional NDAs are utilized.

License Agreements
A license agreement provides the licensee with the ability to use the licensor’s rights to intellectual property in order to develop that technology for commercialization. License agreements typically include some combination of the following elements:

Initial License Fee
This fee is paid after the license agreement is signed. The amount of the fee is dependent on the market value of the technology.

Annual License Fee
This is a recurring annual fee that is occasionally used when it is difficult to determine a basis for royalties.

Patent Reimbursement
These fees reflect the direct cost associated with seeking national and/or international legal protection for the technology.

Developmental Milestones
Many licensed technologies need a commercial partner for further development. Making developmental milestones a part of the license agreements helps to define the expectations for the licensee in commercializing the technology.

Royalties
These fees are paid on sales of the licensed technology. They may be calculated as a percentage of sales or on a per-unit basis.

Minimum Annual Consideration
At the end of each year, the licensor expects a minimum royalty payment for a technology. Any actual royalties paid contribute toward the minimum annual payment. These minimum payments are designed to encourage the continued development and marketing of the technology by the licensee, with the expectation that actual royalties will far exceed the minimum annual consideration.

Sublicense Fees
When an exclusive licensee sublicenses a technology, the licensor typically requires financial consideration in the form of a sublicense fees. This fee is normally based on sales, as with the royalty payments described above.

Option Agreements
These agreements give a company the right to evaluate a technology for a period of time to determine its viability and value to the company. During the option period, the technology owner maintains the technology’s availability, should the company wish to exercise their option to license the technology. A one-time fee is paid for such rights.

Material Transfer Agreements
These permit biological materials and similar specimens owned by the technology owner to be transferred to researchers at universities or companies.

Forecasting for Growth

Maintaining your momentum means looking forward even as you focus on the present. Forecasting and planning are critical to your continued success.

Forecasting for Growth: Strategic Thinking

To be effective as a leader, you must develop skills in strategic thinking. Strategic thinking is a process whereby you learn how to make your business vision a reality by developing your abilities in teamwork, problem solving and critical thinking. It is also a tool to help you confront change, plan for and make transitions, and envision new possibilities and opportunities.

Strategic thinking requires you to envision what you want your ideal outcome to be for your business, then work backwards by focusing on the story of how you will be able to reach your vision.

As you develop a strategic vision for your business, you should focus on five different criteria. These five criteria will help you define your ideal outcome. In addition, they will help you set up and develop the steps necessary to make your business vision come true.

Organization

The organization of your business involves your employees, the organizational structure of your business and the resources necessary to make it all work. What will your organization look like? What type of structure will support your vision? How will you combine people, resources and structure together to achieve your ideal outcome?

Observation

When you are looking down at the world from an airplane, you can see much more than when you are on the ground. Strategic thinking is much the same in that it allows you to see things from “higher up.” By increasing your powers of observation, you will begin to
become more aware of what motivates people, how to solve problems more effectively and how to distinguish between alternatives.

Views

Views are simply different ways of thinking about something. In strategic thinking, there are four viewpoints to take into consideration when forming your business strategy: the environmental view, the marketplace view, the project view, and the measurement view. Views can be used as tools to help you think about outcomes, identify critical elements and adjust your actions to achieve your ideal position.

Driving Forces

What are the driving forces that will make your ideal outcome happen? What is your company’s vision and mission? Driving forces usually lay the foundation for what you want people to focus on in your business (such as what you will use to motivate others to perform). Examples of driving forces might include: individual and organizational incentives; empowerment and alignment; qualitative factors such as a defined vision, values and goals; productive factors like a mission or function; quantitative factors such as results or experience; and others such as commitment, coherent action, effectiveness, productivity and value.

Ideal Position

After working through the first four phases of the strategic thinking process, you should be able to define your ideal position. Your ideal position outline should include: the conditions you have found to be necessary if your business is to be productive; the niche in the marketplace that your business will fill; any opportunities that may exist either currently or in the future for your business; the core competencies or skills required in your business; and the strategies and tactics you will use to pull it all together.

Ideas for Growing Your Business

For those of you who have already successfully started a business and are ready to take the next step, you may be wondering what you can do to help your business grow. There are many ways to do this, 10 of which are outlined below. Choosing the proper one (or ones) for your business will depend on the type of business you own, your available resources, and how much money, time and resources you’re willing to invest all over again. If you’re ready to grow, take a look at these tips.

1. Open another location. This is often the first way business owners approach growth.
If you feel confident that your current business location is under control, consider expanding by opening a new location.

2. Offer your business as a franchise or business opportunity. Franchising your business will allow for growth without requiring you to manage a new location. This will help to maximize the time you spend improving your business in other ways, too. A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business.

In the simplest form, a franchiser owns the right to the name or trademark and sells that right to a franchisee. This is known as product/trade name franchising. The more complex form, business format franchising, involves a broader ongoing
relationship between the two parties. Business format franchises often provide a full range of services, including site selection, training, product supply, marketing plans, and even assistance in obtaining financing.

3. License your product. This can be an effective, low‐cost growth medium, particularly if you have a service product or branded product. Licensing also minimizes your risk and is low cost in comparison to the price of starting your own company to produce and sell your brand or product. To find a licensing partner, start by researching companies that provide products or services similar to yours.

4. Form an alliance. Aligning yourself with a similar type of business can be a powerful way to expand quickly.

5. Diversify. Diversifying is an excellent strategy for growth, because it allows you to have multiple streams of income that can often fill seasonal voids and, of course, increase sales and profit margins. Here are a few of the most common ways to diversify:

• Sell complementary products or services
• Teach adult education or other types of classes
• Import or export yours or others’ products
• Become a paid speaker or columnist

6. Target other markets. Your current market is serving you well. There are probably others, as well. Determine what other markets could use your product.

7. Win a government contract. One way to grow your business is to win business from the government. Work with your local SBA and Small Business Development Center to help you determine the types of contracts available.

When your business delivers products or services under a government contract, you must adhere to a variety of regulations that range from qualifying for the work in the first place, to reporting your activities on a regular basis after a contract is signed. However, you also can take advantage of several programs designed especially to promote small businesses, including Small Business Certification. If your business deals with emerging technology, you may be eligible for government programs designed to promote the application of technology to advance specific initiatives, such as Small Business Innovation Research Grants

The federal government has a vested interest in your success as a small business contracting with a federal agency. Mutual expectations are outlined in Title 13 Code of Federal Regulations.

8. Merge with or acquire another business. Two is always bigger than one. Investigate companies that are similar to yours, or that have offerings that are complementary to yours, and consider the benefits of combining forces or acquiring the company.

9. Expand globally. Enter international markets through partnerships, alliances, joint ventures, subsidiaries, acquisitions, importers, distributors, and more. This requires a thorough understanding and analysis of international markets to determine which are interesting for your products and/or services, along with the expertise to formulate and implement targeted strategies for each one.

10. Expand Online. Very often, customers discover a business through an online search engine. Be sure that your business has an online presence in order to maximize your exposure.

Business consultants thus contend that the key to successful international marketing for any business—whether a multinational corporation or a small entrepreneurial venture—is the ability to adapt, manage, and coordinate an intelligent plan in an unfamiliar (and sometimes unstable) foreign environment.

Businesses choose to explore foreign markets for a host of sound reasons. In some instances, firms initiate foreign market exploration in response to unsolicited orders from consumers in those markets. Many others, meanwhile, seek to establish a business to absorb overhead costs at home, diversify their corporate holdings, take advantage of domestic or international political or economic changes, or tap into new or growing markets. The overriding factor spurring international marketing efforts is, of course, to make money, and as the systems that comprise the global economy become ever more interrelated, many companies have recognized that international opportunities can ultimately
spell the difference between success and failure.

While companies choosing to market internationally do not share an overall profile, they seem to have two specific characteristics in common. First, the products that they market abroad, usually patented, are believed to have high earnings potential in foreign markets. Second, the management of companies marketing internationally must be ready to make a commitment to these markets. This entails far more than simply throwing money at a new exporting venture. Indeed, a business that is genuinely committed to establishing an international presence must be willing to educate itself thoroughly on the particular countries it chooses to enter through a course of market research.

DEVELOPING FOREIGN MARKETS

There are several general ways to develop international markets. They include: exporting products and services from the country of origin; entering into joint venture arrangements; licensing patent rights, trademark rights, etc. to companies abroad; franchising; contract manufacturing; and establishing subsidiaries in foreign countries. A company can commit itself to one or more of the above arrangements at any time during its efforts to develop foreign markets. Each method has its own distinct advantages and disadvantages.

New companies, or those that are taking their first steps into the realm of international commerce, often begin to explore international markets through exporting (though they often struggle with financing). Achieving export sales can be accomplished in numerous ways. Sales can be made directly, via mail order, or through offices established abroad. Companies can also undertake indirect exporting, which involves selling to domestic intermediaries who locate the specific markets for the firm’s products or services. Many companies are able to establish a healthy presence in foreign markets without ever expanding beyond exporting practices.

International licensing occurs when a country grants the right to manufacture and distribute a product or service under the licenser’s trade name in a specified country or market. Although large companies often grant licenses, this practice is also frequently used by small and medium-sized companies. Licensing is often viewed as a supplement to manufacturing and exporting activities, and in some cases may be the least profitable way of entering a market. Nonetheless, it is sometimes an attractive option when an exporter is short of money, when foreign government import restrictions forbid other ways of entering a market, or when a host country is apprehensive about foreign ownership. A method similar to licensing, called franchising, is also increasingly common.

A fourth way to enter a foreign market is through a joint venture arrangement, whereby a company trying to enter a foreign market forms a partnership with one or more companies already established in the host country. Often, the local firm provides expertise on the intended market, while the exporting firm tends to general management and marketing tasks. Use of this method of international investing has accelerated dramatically in the past 25 years. The biggest incentive to entering this type of arrangement is that it reduces the company’s risk by the amount of investment made by the host-country partner. A joint venture arrangement allows firms with limited capital to expand into international arenas, and provides the marketer with access to its partner’s distribution channels. Contract manufacturing, meanwhile, is an arrangement wherein an exporter turns over the production reins to another company, but maintains control of the marketing process.

A company can also expand abroad by setting up its own manufacturing operations in a foreign country, but capital requirements associated with this method generally preclude small companies from pursuing this option. Large corporations are far more likely to embrace this alternative, which often allows them to avoid high import taxes, reduce transportation costs, utilize cheap labor, and gain increased access to raw materials.

MARKETING STRATEGIES

International market efforts take many forms. Companies that conduct international business in several nations often favor what is known as an "individualized" marketing strategy. This approach, which also is often utilized by smaller businesses involved in only one or two foreign markets, typically involves a comprehensive market research component and a significant effort to tailor a product or service to each individual target market. Under this approach, political, social, and economic factors are important components of the marketing process.

Another strategy that is sometimes used is commonly called the Global Marketing Strategy (GMS). This controversial approach largely ignores differences between nations. Instead, its proponents claim that while a business that sells its products in the same way in every market may suffer losses in isolated instances, it will reap compensatory savings elsewhere. "GMS is based on the notion that consumers around the world are growing more and more similar and that a standardized product and marketing mix can achieve enormous economies, especially in advertising, packing, and distribution because they would not be changed," summarized Alexander Hiam and Charles D. Schewe in The Portable MBA in Marketing.

Furthermore, they state, "Proponents of this strategy believe that modern technology has created a commonalty among people around the world. Global travel and communication have exposed more and more people to products and services that they have heard about, actually seen, or even experienced—and now want. Although differences exist in consumer preferences, shopping behavior, cultural institutions, and promotional media, those who support GMS believe that these preferences and practices can and will change to be more similar." Many companies have embraced a hybrid of the GMS and individualized marketing strategies.

Small businesses are discouraged from relying on the GMS strategy. Analysts note that whereas large multinational companies can afford to take a hit on a poorly marketed product on occasion, most small businesses are not so strong.
For small enterprises, then, market research becomes an essential component of operations. After all, a single misstep in the international market can cripple a young company, or at least make it apprehensive about future forays.