Walk and chew gum at the same time?

June 16, 2017

A recent article[1] observes that “Microsoft is learning from Amazon.com…[basing] more of its decision-making on data-driven experiments and what it thinks customers want rather than what competitors might be doing.” Woof. Does this mean that Microsoft has NOT been basing some decisions on what customers want? Or does it mean that Amazon.com doesn’t use competitive intelligence (CI) in its decision-making? I doubt either is true, but this observation reflects a tribal attitude towards actionable information in many corporations.

Exactly what is the problem with basing corporate decisions on holistic intelligence dealing with the totality of the competitive and marketing environments? The default choice, alas, in some firms is evidently market research (MR), without any CI. Maybe the MR people do a little (what they call) CI, but usually they do not. If there is any CI process, it is likely reporting to the planning function, but not supporting sales and marketing as well. These silos hinder effective operation. That is like driving your car with clear side and rear windows, but with a shattered, opaque front windshield.

For example, say that MR including the “voice of the customers” research, discloses a need/desire of customers that they are also willing to pay for (an oft-ignored issue). Would it not help to know if CI disclosed that (a) one major competitor has previously rejected this opportunity (and why), (b) a second major competitor is ready to roll-out a new product/service to meet this need in the next 30 days, (c) a third competitor has done similar research and saw no such opportunity, and/or (d) another smaller competitor has the technology to enter this niche, but currently lacks the funding to do so? I think so.

Maybe Microsoft is right here. Why buy Safeway just because Amazon.com is buying Whole Foods?

[1] Matt Day, “Microsoft borrows from Amazon’s philosophy as its cloud grows”, The Seattle Times, June 7, 2017, http://www.seattletimes.com/business/microsoft/microsoft-borrows-from-amazons-philosophy-as-its-cloud-grows/



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s