The advantages of conducting a technological competitive analysis
Technology is a principal catalyst for achieving competitive dominance. But with technologies evolving at a breakneck pace, keeping up with the changing landscape and knowing which technology to leverage for competitive advantage is not always straightforward. A thorough technological competitive analysis is key to reducing disruptive threats and staying ahead.
What is technological competitive analysis?
A technological competitive analysis compares a firm’s position against increasing or decreasing opportunities within the industry. Depending on a combination of industrial maturity and the firm’s competitive position, firms can decide which strategic route to pursue. It also involves analyzing potential technologies to decide which to monitor, experiment or develop.
Conducting a technological competitive analysis is especially vital for firms with a favorable hold on the market to maintain their competitive edge and move towards achieving competitive dominance.
This is done through the synthesis of competitive information, including:
- Each company’s market position
- Suppliers and vendors
- Patents/intellectual property (IP)
- M&A activities
- Membership with regulatory bodies
- Membership with various standards organizations
- Competitor job postings
Here’s how it helps:
Identify key technologies and their potential application in your industry
Technological competitive analysis can reveal the key emerging technologies in your industry and how rival firms plan to adopt them. For example, this chart highlights the top focus areas for edge computing investments based on the analysis of M&As.
Other sources of such competitive intelligence include patent data, company announcements, and employment opportunities.
Prioritize various technology programs
A comprehensive technological competitive analysis not only reveals the technology investments of your competitors but also helps you evaluate their potential implications. This helps prioritize various technology initiatives, including what to develop, innovate or simply monitor.
Typical technology competitive analysis also includes a detailed analysis of the nature and state of each potential technology versus the advancement of current products and processes. This provides insight into the performance implications of the technology and the technology itself. Based on this knowledge, companies can then classify it as basic, key, emerging or in early-development.
Read case study: Technology tracking to identify opportunities in energy and petrochemicals
Identify substitute technologies
A competitive technology analysis can reveal proprietary technologies owned by competitors that are hard to emulate. A deep-dive study of the underlying science behind such technologies allow firms to identify substitute technologies that offer a defensible competitive advantage.
Substitutes can also help firms differentiate their products or processes and lower costs.
Strengthen your IP portfolio
Benchmarking competitor patents can further refine the understanding of your technological positioning by highlighting your competitors’ technological progress versus your own. These insights help firms to identify and plug gaps in their IP portfolio through further R&D or liaising with relevant inventors.
Understanding the technological nature and promise of competitive products can guide R&D strategy, help maintain standard industry best-practice, and inform decisions around strategic alliances.
Netscribes helps firms meet these goals through in-depth technological competitive analysis that combines quantitative and qualitative methods, IP research and social media analytics. Our multi-pronged approach gives you the complete picture so you can make more confident decisions. To request a consultation, contact info@netscribes.com.
