Description
Environment Intelligence An Innovative Information Service
Singapore Journal of Library & Information Management • Volume 38 • 2009 13
Environment Intelligence:
An Innovative Information Service
Shaheen Majid
Christopher Khoo
Nanyang Technological University
Abstract
Libraries are continually developing innovative and creative services to keep
pace with the fast changing society. ICT developments, particularly those
providing easy access to information on the Web, have considerably
increased the expectations of library users, who expect the same speed,
breadth, and comprehensiveness in information services provided by libraries.
To meet these challenges, libraries are coming up with specialized, innovative
and value-added information services, such as provision of environment
intelligence. This paper introduces the concept of environment intelligence
and its scope, and discusses how environmental knowledge can be used for
problem solving, developing new initiatives, tactical and strategic planning, and
organizational learning and restructuring. This paper also provides an
overview of efforts made by library and information education programs in
imparting new competencies to their graduates for undertaking
environmental scanning and other related activities.
Keywords: Environment intelligence, information service, innovation, library
schools, competencies
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 14
Introduction
Library and information science (LIS) is a multi-disciplinary and dynamic
field which adapts rapidly to technological and social developments, and
keeps pace with emerging ideas and technologies. The willingness of library
and information professionals to proactively accept changes and venture into
new knowledge territories is helping the LIS discipline to stay relevant and
useful in the fast changing society. Other factors that are driving innovation
and creativity in LIS, are the popularity of the Web as an alternative source for
information acquisition as well as competition from non-library agencies now
involved in information provision. In recent years, library and information
professionals have readily embraced and contributed to certain new disciplines
and technologies such as digital libraries, RFID applications, developing
taxonomies and metadata, Web archiving, organizational repositories, human-
computer interface, web-intelligence, mobile reference services. On one hand,
these pioneering initiatives have helped the LIS discipline to continue
contributing to human knowledge; on the other hand, they have enabled the
LIS discipline to create new job opportunities for its professionals. These
successes have given encouragement and confidence to library and
information professionals to explore new opportunities and undertake non-
traditional information dissemination activities. One such information-
intensive application, which has recently captured the attention of LIS
professionals, is environment intelligence. In the literature, the terms
‘environmental scanning’ and ‘environment intelligence’ have been used
interchangeably.
What is Environment Intelligence?
Environment intelligence is an encompassing concept covering disciplines
such as competitor intelligence, competitive intelligence, business intelligence
and social intelligence. It is important to understand and distinguish
environment intelligence from ‘intelligence’ related activities undertaken by
spy agencies. Environment intelligence is the collection of information about
events and changes happening in the external environment of an organization
by using legal and ethical information gathering channels and techniques. The
external environment here refers to relevant social and physical factors outside
the typical boundaries of an organization which may affect its performance
and future survival (McGee & Sawyer, 2003). According to Albright (2004),
environment intelligence focuses on the identification of emerging issues,
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 15
trends, events, and potential dangers that may affect an organization’s future.
The information collected through environment intelligence can be used for
evaluating the organization’s strengths and weaknesses in response to external
threats and opportunities. In other words, environmental scanning is a process
of identifying, collecting, processing and translating information about
external influences into useful plans and decisions (Hough, 2004). Continuous
and systematic environmental scanning enables an organization to avoid
surprises and gain competitive edge over its competitors through timely and
effective decision-making.
Importance of Environment Intelligence
Employees in a an organization need high quality, up-to-date, relevant and
accurate information for performing their daily tasks, for decision making,
considering new initiatives, undertaking key projects, and doing tactical and
strategic planning. Libraries and information units in these organizations
develop their information resources, services and facilities to meet these
information needs. Traditionally, many libraries focus on collecting and
providing access to traditional information sources such as online databases,
monographs, magazines, institutional annual reports, and reference materials.
A weakness of these information sources is that they are usually produced for
a broad range of audience and may not satisfy the information needs of a
specific organization. Many organizations, in addition to traditional
information provision, need sharply focused and context-specific information
which is directly relevant to their activities and operations. One such
information need is the knowledge of what is happening around an
organization. What are their competitors doing? How technological
developments are expected to affect their products and services? How will
changes in government policies affect their business? Most of these questions
can be answered through an effective and systematic environment intelligence
effort.
Organizations have always been collecting information about their external
environments for improving their operations and for developing future
business strategies. However, in recent years, environment knowledge has
become crucial as the business environment is becoming more complex,
competitive, and unstable due to factors such as rapid globalization,
technological innovations, frequent economic crises, changing lifestyles,
terrorism threats, political realignments, and epidemics and natural disasters.
Therefore, organizations need to regularly monitor their micro and macro
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 16
environments, and use this knowledge for making necessary adjustments in
their operations and strategies (Kamoun-Chouk, 2007). Environment
intelligence can also help organizations identify opportunities and threats
emerging in their outer environments. Continuous and systematic environment
scanning enables an organization to avoid surprises and gain competitive edge
over its competitors through timely and effective decision-making (Temtime,
2004).
Types of External Environments
Broadly the external environment can be divided into two major categories:
the domain or near environment and the general or remote environment.
1. Domain or Near Environment
This environment (also called micro environment) exists immediately outside
an organization’s boundary and includes those factors that may directly
influence its operations, performance, and outcomes (Myburgh, 2004). In
addition to competitors of the organization, this environment also includes
those entities with which the organization has business relationships such as
customers, suppliers and other stakeholders. Organizations need to closely
monitor their domain environments as any significant change in it can
instantly affect them and any delay in response could be lethal for them. The
following sections outline the types of information companies usually seek
about different players in their domain environment:
A. Competitors: Information about current and potential competitors such
as their products and services, marketing strategies, distribution
channels, human and physical resources, volume of trade, key clients,
promotional campaigns, research and development activities, future
projects.
B. Customers: These could be end-customers of an organization or other
companies buying ingredients or parts from the organization to
manufacture their own products. In either business-to-business (B-2-B)
or business-to-customer (B-2-C) relationship, organizations need
detailed information about their existing and potential customers, such
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 17
as, their purchase frequency and buying power, strengths and
weaknesses, their access to substitute products.
C. Suppliers: In a business-to-business situation, suppliers are those
companies that supply ingredients or parts to an organization for
manufacturing its products or offering certain services. The desired
information about such suppliers could be their credit status, clients
and competitors, market share and strategies.
D. Technology: This factor is very important for those companies that are
either producing technology-based products or using hi-tech
manufacturing processes. It may include information about
developments in the technology used by the company and its
competitors, pace of technological innovations, impact of technology
on current operations and product/service quality, threat from
substitute products using sophisticated technology.
2. General or Remote Environment
Factors included in the general environment, also called macro environment,
may indirectly or in the long run influence a company’s performance and
growth. Companies need to carefully watch these factors as these may become
significant over a period of time. The following are some major factors that
may affect a company:
A. Demographic Factors: Proportion of ageing population, birth rate, life
expectancy, education, income, mobility, etc.
B. Economic Factors: The overall economic situation and business
culture in a country. It may also include information about mergers and
alliances, growth rates, employment rates, inflation, interest rates,
monetary policies, business infrastructure.
C. Political Factors: Some businesses are affected by political situation
in a particular country or election success by a political party with
different economic agenda and strategies. For example, change in
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 18
policies pertaining to privatization or nationalization, new taxes or
rebates, preference to a particular business sector.
D. Social and Cultural Factors: These factors may also affect a business
over a period of time. For example, emergence of new social classes,
family structure, lifestyle changes, living standards, buying behavior,
and work culture in a particular society.
E. ICT Developments: Some ICT developments and innovations are
affecting all types of organizations. It may include new gadgets, and
pace of ICT diffusion in a society.
Who is Using Environment Intelligence?
Initially the concept of environment intelligence was presented and
implemented by large business organizations. Aguilar (1967) studied the
approaches used by 137 managers from 41 companies for getting information
about events occurring outside their boundaries. During the next two decades
several such studies were undertaken, investigating different aspects of
environment intelligence and its utilization. After the 1980’s, the environment
scanning activities gained momentum and many large companies and
multinationals started strengthening their intelligence gathering efforts by
using trained manpower and sophisticated technology. Now almost all types of
organizations including public, academic, Non-Governmental Organizations
(NGOs), and charities are actively capturing, processing and utilizing
environment intelligence for problem solving, undertaking new initiatives, and
for tactical and strategic planning.
Over the years, realizing the importance of environmental knowledge, small
and medium sized enterprises (SMEs) have started taking more interest in
environmental scanning (McGee & Sawyer, 2003; Majid & Kowtha, 2008).
Many developing countries, such as Bulgaria (Elenkov, 1997), Thailand
(Ngamkroeckjoti, Speece & Dimmitt, 2005) and Tunisia (Kamoun-Chouk,
2007), also joined these efforts and started gathering environment intelligence.
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 19
The need and importance of gathering environment intelligence may vary
from industry to industry. Two major factors that determine the frequency,
level of effort, and allocation of financial and manpower resources for
environmental scanning are degree of change and degree of environmental
complexity (Robbins & Coulter, 2005). If environmental changes are minimal
and predictable, it is called a ‘stable’ external environment. On the other hand,
if components in an organization’s environment are vibrant, unpredictable and
changing frequently, it is considered a ‘dynamic’ environment. Some
industries where environmental scanning is more popular are education
(Chorney, 2000), healthcare (Sisk, 2006), travel (Majid & Ishak, 2004), and
the food industry (Ngamkroeckjoti, Speece & Dimmitt, 2005).
Applications of Environment Intelligence
The collected environment intelligence can be used for multiple purposes, but
the type of information gathered for various applications could be slightly
different. The following sections highlight the major applications of
environment intelligence:
A. Tactical Use of Information: Organizations need different types of
information for short-term and tactical decision making. Usually
information collected from the domain environment is more useful for
this purpose. Organizations need to act immediately on this
information as unnecessary delay could be damaging. For example, a
company needs to continuously monitor market promotions, product
launches and pricing structures of its competitors and make appropriate
moves to maintain its market share.
B. Strategic Use of Environment Intelligence: Proper environment
intelligence can contribute significantly to the strategic planning of an
organization. Strategic planning is a mechanism by which an
organisation collects and evaluates information about its own
operations and its relationship to its environment, generates projections
about future changes, and sets organisational goals based on these
projections. Xu and Kaye (1995) present the ‘80:20 rule’ for strategic
planning where 80% of the needed information comes from the
external environment while 20% is from within the organization. For
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 20
example, environment information plays a significant role in
effectively using the planning techniques of SWOT (Strengths,
Weaknesses, Opportunities and Threats) analysis and PEST (Political,
Economic, Social and Technology) analysis.
C. Environment Intelligence and Organizational Learning: Gisescke
and McNeil (2004) defined the learning organization as an
organization skillful in creating, acquiring, and transferring knowledge
and at modifying its behavior to reflect new knowledge and insights.
Environment intelligence supports an organization’s efforts to learn
through acquisition, interpretation and use of information about events,
trends, and their relationships. This information can also be used for
both short-term single-loop learning and long-term double-loop
learning.
Environmental Scanning Process
Over the years, the process and scope of environmental scanning has gradually
extended by incorporating certain information management concepts.
Environmental scanning is no longer an activity to collect information from
the environment. Instead, it is a set of inter-related activities which involves
information gathering, filtering, analyzing, repacking, identifying major trends,
and information dissemination to relevant individuals and departments.
Generally, environmental scanning involves the following five inter-related
activities:
A. Identifying Information Needs: The first step in developing an
effective environment scanning program is to understand the
information needs of different individuals and departments in the
organization. It involves an analysis of tasks performed by different
categories of staff, the organization’s core work processes, and the type
of information required for decision-making and strategic planning.
B. Information Acquisition: A variety of print, online and human sources
can be used for gathering the needed intelligence. As organizations
need environmental information that is directly relevant to their
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 21
specific activities and operations, many traditional information sources
can only provide limited context-specific information. It is, therefore,
desirable for libraries to identify and use certain non-traditional
information sources to meet the information needs of their users.
Another aspect in which environment intelligence differs from an
information management service is the use of organization’s staff for
gathering the needed information. It is because many employees may
come across a lot of useful and updated information while performing
their responsibilities through interaction with the external environment
(companies and individuals). Proper training and orientation can help
these employees to understand how to capture, document and share the
information with their peers.
C. Information Processing and Storage: Information processing usually
involves activities such as resource description, classification and
categorization by using certain simple tools and techniques. The
gathered intelligence can be stored in a paper-based filing system or in
the enterprise portal, intranet or a specialized database.
D. Information Products and Services: This activity is crucial in
converting the raw information collected from the environment into
more meaningful and actionable information products and services.
For this purpose, certain value-added activities such as filtering,
interpreting and repackaging could be useful.
E. Information Dissemination and Use: Library and information
professionals should consider several factors while disseminating the
environment intelligence to their intended users. They should ensure
that the correct information or intelligence makes its way to the correct
destination; secondly the information should be delivered through
channels and in formats that mesh well with users’ information
preferences and work habits.
Environment Intelligence based Information
Services
As information needs of employees in an organization are quite diverse,
libraries should consider offering a variety of information services targeting
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 22
different segments of its users. Usually organizations, based on the attributes
of their environments, decide what types of information products and services
will be useful for meeting the information needs of their users. Some of the
following services can be used for disseminating intelligence gathered through
environmental scanning:
A. Daily Briefings: Some organizations arrange daily briefings for their
staff to highlight certain important issues, including possible
implications of intelligence gathered from the environment. This face-
to-face interaction provides an opportunity for the staff to ask
questions and express their opinions on new developments.
B. Environment Intelligence Alerts: These alerts are like ‘breaking
news’. A library on receiving an important news from the environment,
needing immediate attention, may send an email or SMS ‘alert’ to all
concerned individuals and departments for taking appropriate action.
Such a service can help organizations to immediately respond to an
emerging situation and avoid or minimize its negative effects.
C. Periodic Intelligence Reports: A library may compile regular
environment intelligence reports on different topics. The frequency of
such reports usually depends on the complexity and degree of change
in the external environment. Many organization issues such reports
either on a monthly or quarterly basis.
D. On-demand Environment Intelligence: An organization, before
embarking on a new project or initiative, may ask its library to conduct
one-off environmental scanning on a given topic. At the time of
strategic planning, it may also ask its library to provide more
comprehensive and in-depth analysis of the external environment.
Preparing Competent Information Professionals
As there is a degree of overlap between information management and
environment intelligence activities, some of the competencies provided by LIS
programs to their graduates will be useful in undertaking environmental
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 23
scanning. Nevertheless, information professionals need an additional set of
competencies to effectively provide this service. For example, LIS
professionals would need a basic understanding of business and marketing
principles to effectively undertake certain environmental scanning activities
such as competitor intelligence and business intelligence.
Library and information programs are using different approaches for preparing
LIS professionals with adequate understanding of environmental scanning and
related disciplines. Some LIS programs offer full courses on environmental
scanning, competitor intelligence and other related subject areas. For example,
the College of Information Studies, University of Maryland (USA) offers a
course on ‘Environmental Scanning for Information Managers’
(http://www.clis.umd.edu/courses/syllabi.shtml). Some LIS programs offering
courses in ‘competitor intelligence’ are Loughborough University (UK), the
University of British Colombia (Canada), Drexel University, University of
Denver, Dominican University, University of Illinois, University of Maryland,
University of Oklahoma, and Rutgers University. A course on ‘business
intelligence’ is taught in the information studies programs at University of
Tennessee (USA) and Nanyang Technological University (Singapore).
Some LIS programs include environmental scanning and related topics as a
segment of a broader course. For example, the Faculty of Management and
Information Sciences, University of Brighton, covers these topics in its course
on ‘Managing Information Services’ (http://www.brighton.ac.uk/cmis/courses/
postgraduate/information/). Similarly, the focus of the ‘Information
Management’ course in the School of Communication and Information,
Nanyang Technological University, Singapore, is on environmental scanning
and competitor intelligence (http://www.ntu.edu.sg/sci/graduate/
information_studies.html).
Recognizing that ‘hybrid’ professionals, possessing in-depth knowledge of
information and business management, will be in a better position to
effectively meet the information needs of a business organization, some
academic institutions have started offering dual degrees in business
management and library and information science. For example, the University
of Michigan offers a dual-degree programme leading to a Master of Business
Administration and a Master of Science in Information
(http://www.si.umich.edu/msi/dual/mba-msi.htm). Similarly, dual-degree
programmes leading to a Master’s degree in Business Administration and a
Master’s degree in Library & Information Studies are offered by Dalhousie
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 24
University, Canada (http://management.dal.ca/Degree%20Programs/
Dual_Degree_Programs.php) and by Kent State University, USA
(http://www.slis.kent.edu/index.php?option=com_content&task=view&id=
77&Itemid=113).
Conclusion
Library and information science professionals need to use innovative and
creative ways to meet diverse information needs of their users. It is
particularly important as the work environment is becoming increasingly
complex and competitive, and companies need to react immediately to
changes happening in their external environments. It is, therefore, crucial for
employees in these companies to have quick access to high quality, accurate,
up-to-date and reliable information to make timely and well-informed
decisions. Information professionals, in addition to providing traditional
library services, need to use non-traditional and innovative methods to meet
highly specialized information needs of their users. One such service which is
becoming popular in almost all types of organizations is providing access to
environment intelligence. As standard information sources are relatively less
useful in gathering environment intelligence, LIS professionals need to
identify and use a variety of non-traditional information sources. Library and
information education programs also need to look beyond the traditional LIS
jobs and start preparing professionals for emerging job roles.
References
Aguilar, F. J . (1967). Scanning the business environment. New York:
Macmillan.
Albright, K. S. (2004). Environmental scanning: Radar for success.
Information Management Journal 38 (3), 38-45.
Chorney, L. B. (2000). Environmental scanning in Pittsburgh Proprietary
Schools. Doctoral dissertation, University of Pittsburgh.
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 25
Elenkov, D.S. (1997). Strategic uncertainty and environmental scanning: The
case for institutional influences on scanning behavior. Strategic
Management Journal 18 (4), 287–302.
Giesecke, J . & McNeil, B. (2004). Transitioning to the learning organization,
Library Trends 53 (1): 54-67.
Hough, J . R. (2004). Scanning actions and environmental dynamism:
Gathering information for strategic decision making. Management
Decision 42 (6), 781-793.
Kamoun-Chouk, S. (2007). Environment scanning in Tunisia manufacturing
SMEs. Journal of Information & Knowledge Management 6 (1), 57-67.
McGee, J . E. & Sawyer, O. O. (2003). Uncertainty and information search
activities: A study of owner-managers of small high-technology
manufacturing firms. Journal of Small Business Management 41 (4),
385-401.
Majid, S. & Ishak, N. (2004). Competitor intelligence initiatives undertaken
by travel agencies in Singapore. Singapore Journal of Library &
Information Management 33, 28-38.
Majid, S. & Kowtha, R. (2008, May). Utilizing environmental knowledge for
competitive advantage. Paper presented at the International Conference
on Information Resources Management (Conf-IMR), Niagara Falls,
Canada.
Myburgh, S. (2004). Competitive intelligence: Bridging organizational
boundaries. Information Management Journal 38 (2), 46-55.
Ngamkroeckjoti, C., Speece, M., & Dimmitt, N. J . (2005). Environmental
scanning in Thai food SMEs: The impact of technology strategy and
technology turbulence. British Food Journal 107 (5), 285-305.
Xu, X. & Kaye, G. R. (1995). Building market intelligence systems for
environment scanning. Logistics Information Management 8 (2), 22-
29.
Robbins, S. P., & Coulter, M. 2005. Management (8th ed.). NJ : Prentice Hall
Sisk, J . (2006). Asset management: Scan the horizon for clinical success via
enlightened technology. Healthcare Purchasing News 30 (1), 53-54.
Temtime, Z. T. (2004). Linking environmental scanning to total quality
management through business planning. Journal of Management
Development 23 (3), 219-233.
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 26
About the Authors
Shaheen Majid, Associate Professor, Wee Kim School of Communication &
Information, Nanyang Technological University, Singapore
Email: [email protected]
Christopher Khoo, Associate Professor, Wee Kim School of Communication
& Information, Nanyang Technological University, Singapore
Email: [email protected]
doc_113905792.pdf
Environment Intelligence An Innovative Information Service
Singapore Journal of Library & Information Management • Volume 38 • 2009 13
Environment Intelligence:
An Innovative Information Service
Shaheen Majid
Christopher Khoo
Nanyang Technological University
Abstract
Libraries are continually developing innovative and creative services to keep
pace with the fast changing society. ICT developments, particularly those
providing easy access to information on the Web, have considerably
increased the expectations of library users, who expect the same speed,
breadth, and comprehensiveness in information services provided by libraries.
To meet these challenges, libraries are coming up with specialized, innovative
and value-added information services, such as provision of environment
intelligence. This paper introduces the concept of environment intelligence
and its scope, and discusses how environmental knowledge can be used for
problem solving, developing new initiatives, tactical and strategic planning, and
organizational learning and restructuring. This paper also provides an
overview of efforts made by library and information education programs in
imparting new competencies to their graduates for undertaking
environmental scanning and other related activities.
Keywords: Environment intelligence, information service, innovation, library
schools, competencies
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 14
Introduction
Library and information science (LIS) is a multi-disciplinary and dynamic
field which adapts rapidly to technological and social developments, and
keeps pace with emerging ideas and technologies. The willingness of library
and information professionals to proactively accept changes and venture into
new knowledge territories is helping the LIS discipline to stay relevant and
useful in the fast changing society. Other factors that are driving innovation
and creativity in LIS, are the popularity of the Web as an alternative source for
information acquisition as well as competition from non-library agencies now
involved in information provision. In recent years, library and information
professionals have readily embraced and contributed to certain new disciplines
and technologies such as digital libraries, RFID applications, developing
taxonomies and metadata, Web archiving, organizational repositories, human-
computer interface, web-intelligence, mobile reference services. On one hand,
these pioneering initiatives have helped the LIS discipline to continue
contributing to human knowledge; on the other hand, they have enabled the
LIS discipline to create new job opportunities for its professionals. These
successes have given encouragement and confidence to library and
information professionals to explore new opportunities and undertake non-
traditional information dissemination activities. One such information-
intensive application, which has recently captured the attention of LIS
professionals, is environment intelligence. In the literature, the terms
‘environmental scanning’ and ‘environment intelligence’ have been used
interchangeably.
What is Environment Intelligence?
Environment intelligence is an encompassing concept covering disciplines
such as competitor intelligence, competitive intelligence, business intelligence
and social intelligence. It is important to understand and distinguish
environment intelligence from ‘intelligence’ related activities undertaken by
spy agencies. Environment intelligence is the collection of information about
events and changes happening in the external environment of an organization
by using legal and ethical information gathering channels and techniques. The
external environment here refers to relevant social and physical factors outside
the typical boundaries of an organization which may affect its performance
and future survival (McGee & Sawyer, 2003). According to Albright (2004),
environment intelligence focuses on the identification of emerging issues,
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 15
trends, events, and potential dangers that may affect an organization’s future.
The information collected through environment intelligence can be used for
evaluating the organization’s strengths and weaknesses in response to external
threats and opportunities. In other words, environmental scanning is a process
of identifying, collecting, processing and translating information about
external influences into useful plans and decisions (Hough, 2004). Continuous
and systematic environmental scanning enables an organization to avoid
surprises and gain competitive edge over its competitors through timely and
effective decision-making.
Importance of Environment Intelligence
Employees in a an organization need high quality, up-to-date, relevant and
accurate information for performing their daily tasks, for decision making,
considering new initiatives, undertaking key projects, and doing tactical and
strategic planning. Libraries and information units in these organizations
develop their information resources, services and facilities to meet these
information needs. Traditionally, many libraries focus on collecting and
providing access to traditional information sources such as online databases,
monographs, magazines, institutional annual reports, and reference materials.
A weakness of these information sources is that they are usually produced for
a broad range of audience and may not satisfy the information needs of a
specific organization. Many organizations, in addition to traditional
information provision, need sharply focused and context-specific information
which is directly relevant to their activities and operations. One such
information need is the knowledge of what is happening around an
organization. What are their competitors doing? How technological
developments are expected to affect their products and services? How will
changes in government policies affect their business? Most of these questions
can be answered through an effective and systematic environment intelligence
effort.
Organizations have always been collecting information about their external
environments for improving their operations and for developing future
business strategies. However, in recent years, environment knowledge has
become crucial as the business environment is becoming more complex,
competitive, and unstable due to factors such as rapid globalization,
technological innovations, frequent economic crises, changing lifestyles,
terrorism threats, political realignments, and epidemics and natural disasters.
Therefore, organizations need to regularly monitor their micro and macro
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 16
environments, and use this knowledge for making necessary adjustments in
their operations and strategies (Kamoun-Chouk, 2007). Environment
intelligence can also help organizations identify opportunities and threats
emerging in their outer environments. Continuous and systematic environment
scanning enables an organization to avoid surprises and gain competitive edge
over its competitors through timely and effective decision-making (Temtime,
2004).
Types of External Environments
Broadly the external environment can be divided into two major categories:
the domain or near environment and the general or remote environment.
1. Domain or Near Environment
This environment (also called micro environment) exists immediately outside
an organization’s boundary and includes those factors that may directly
influence its operations, performance, and outcomes (Myburgh, 2004). In
addition to competitors of the organization, this environment also includes
those entities with which the organization has business relationships such as
customers, suppliers and other stakeholders. Organizations need to closely
monitor their domain environments as any significant change in it can
instantly affect them and any delay in response could be lethal for them. The
following sections outline the types of information companies usually seek
about different players in their domain environment:
A. Competitors: Information about current and potential competitors such
as their products and services, marketing strategies, distribution
channels, human and physical resources, volume of trade, key clients,
promotional campaigns, research and development activities, future
projects.
B. Customers: These could be end-customers of an organization or other
companies buying ingredients or parts from the organization to
manufacture their own products. In either business-to-business (B-2-B)
or business-to-customer (B-2-C) relationship, organizations need
detailed information about their existing and potential customers, such
Shaheen & Khoo • Environment Intelligence
Singapore Journal of Library & Information Management • Volume 38 • 2009 17
as, their purchase frequency and buying power, strengths and
weaknesses, their access to substitute products.
C. Suppliers: In a business-to-business situation, suppliers are those
companies that supply ingredients or parts to an organization for
manufacturing its products or offering certain services. The desired
information about such suppliers could be their credit status, clients
and competitors, market share and strategies.
D. Technology: This factor is very important for those companies that are
either producing technology-based products or using hi-tech
manufacturing processes. It may include information about
developments in the technology used by the company and its
competitors, pace of technological innovations, impact of technology
on current operations and product/service quality, threat from
substitute products using sophisticated technology.
2. General or Remote Environment
Factors included in the general environment, also called macro environment,
may indirectly or in the long run influence a company’s performance and
growth. Companies need to carefully watch these factors as these may become
significant over a period of time. The following are some major factors that
may affect a company:
A. Demographic Factors: Proportion of ageing population, birth rate, life
expectancy, education, income, mobility, etc.
B. Economic Factors: The overall economic situation and business
culture in a country. It may also include information about mergers and
alliances, growth rates, employment rates, inflation, interest rates,
monetary policies, business infrastructure.
C. Political Factors: Some businesses are affected by political situation
in a particular country or election success by a political party with
different economic agenda and strategies. For example, change in
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Singapore Journal of Library & Information Management • Volume 38 • 2009 18
policies pertaining to privatization or nationalization, new taxes or
rebates, preference to a particular business sector.
D. Social and Cultural Factors: These factors may also affect a business
over a period of time. For example, emergence of new social classes,
family structure, lifestyle changes, living standards, buying behavior,
and work culture in a particular society.
E. ICT Developments: Some ICT developments and innovations are
affecting all types of organizations. It may include new gadgets, and
pace of ICT diffusion in a society.
Who is Using Environment Intelligence?
Initially the concept of environment intelligence was presented and
implemented by large business organizations. Aguilar (1967) studied the
approaches used by 137 managers from 41 companies for getting information
about events occurring outside their boundaries. During the next two decades
several such studies were undertaken, investigating different aspects of
environment intelligence and its utilization. After the 1980’s, the environment
scanning activities gained momentum and many large companies and
multinationals started strengthening their intelligence gathering efforts by
using trained manpower and sophisticated technology. Now almost all types of
organizations including public, academic, Non-Governmental Organizations
(NGOs), and charities are actively capturing, processing and utilizing
environment intelligence for problem solving, undertaking new initiatives, and
for tactical and strategic planning.
Over the years, realizing the importance of environmental knowledge, small
and medium sized enterprises (SMEs) have started taking more interest in
environmental scanning (McGee & Sawyer, 2003; Majid & Kowtha, 2008).
Many developing countries, such as Bulgaria (Elenkov, 1997), Thailand
(Ngamkroeckjoti, Speece & Dimmitt, 2005) and Tunisia (Kamoun-Chouk,
2007), also joined these efforts and started gathering environment intelligence.
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Singapore Journal of Library & Information Management • Volume 38 • 2009 19
The need and importance of gathering environment intelligence may vary
from industry to industry. Two major factors that determine the frequency,
level of effort, and allocation of financial and manpower resources for
environmental scanning are degree of change and degree of environmental
complexity (Robbins & Coulter, 2005). If environmental changes are minimal
and predictable, it is called a ‘stable’ external environment. On the other hand,
if components in an organization’s environment are vibrant, unpredictable and
changing frequently, it is considered a ‘dynamic’ environment. Some
industries where environmental scanning is more popular are education
(Chorney, 2000), healthcare (Sisk, 2006), travel (Majid & Ishak, 2004), and
the food industry (Ngamkroeckjoti, Speece & Dimmitt, 2005).
Applications of Environment Intelligence
The collected environment intelligence can be used for multiple purposes, but
the type of information gathered for various applications could be slightly
different. The following sections highlight the major applications of
environment intelligence:
A. Tactical Use of Information: Organizations need different types of
information for short-term and tactical decision making. Usually
information collected from the domain environment is more useful for
this purpose. Organizations need to act immediately on this
information as unnecessary delay could be damaging. For example, a
company needs to continuously monitor market promotions, product
launches and pricing structures of its competitors and make appropriate
moves to maintain its market share.
B. Strategic Use of Environment Intelligence: Proper environment
intelligence can contribute significantly to the strategic planning of an
organization. Strategic planning is a mechanism by which an
organisation collects and evaluates information about its own
operations and its relationship to its environment, generates projections
about future changes, and sets organisational goals based on these
projections. Xu and Kaye (1995) present the ‘80:20 rule’ for strategic
planning where 80% of the needed information comes from the
external environment while 20% is from within the organization. For
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Singapore Journal of Library & Information Management • Volume 38 • 2009 20
example, environment information plays a significant role in
effectively using the planning techniques of SWOT (Strengths,
Weaknesses, Opportunities and Threats) analysis and PEST (Political,
Economic, Social and Technology) analysis.
C. Environment Intelligence and Organizational Learning: Gisescke
and McNeil (2004) defined the learning organization as an
organization skillful in creating, acquiring, and transferring knowledge
and at modifying its behavior to reflect new knowledge and insights.
Environment intelligence supports an organization’s efforts to learn
through acquisition, interpretation and use of information about events,
trends, and their relationships. This information can also be used for
both short-term single-loop learning and long-term double-loop
learning.
Environmental Scanning Process
Over the years, the process and scope of environmental scanning has gradually
extended by incorporating certain information management concepts.
Environmental scanning is no longer an activity to collect information from
the environment. Instead, it is a set of inter-related activities which involves
information gathering, filtering, analyzing, repacking, identifying major trends,
and information dissemination to relevant individuals and departments.
Generally, environmental scanning involves the following five inter-related
activities:
A. Identifying Information Needs: The first step in developing an
effective environment scanning program is to understand the
information needs of different individuals and departments in the
organization. It involves an analysis of tasks performed by different
categories of staff, the organization’s core work processes, and the type
of information required for decision-making and strategic planning.
B. Information Acquisition: A variety of print, online and human sources
can be used for gathering the needed intelligence. As organizations
need environmental information that is directly relevant to their
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Singapore Journal of Library & Information Management • Volume 38 • 2009 21
specific activities and operations, many traditional information sources
can only provide limited context-specific information. It is, therefore,
desirable for libraries to identify and use certain non-traditional
information sources to meet the information needs of their users.
Another aspect in which environment intelligence differs from an
information management service is the use of organization’s staff for
gathering the needed information. It is because many employees may
come across a lot of useful and updated information while performing
their responsibilities through interaction with the external environment
(companies and individuals). Proper training and orientation can help
these employees to understand how to capture, document and share the
information with their peers.
C. Information Processing and Storage: Information processing usually
involves activities such as resource description, classification and
categorization by using certain simple tools and techniques. The
gathered intelligence can be stored in a paper-based filing system or in
the enterprise portal, intranet or a specialized database.
D. Information Products and Services: This activity is crucial in
converting the raw information collected from the environment into
more meaningful and actionable information products and services.
For this purpose, certain value-added activities such as filtering,
interpreting and repackaging could be useful.
E. Information Dissemination and Use: Library and information
professionals should consider several factors while disseminating the
environment intelligence to their intended users. They should ensure
that the correct information or intelligence makes its way to the correct
destination; secondly the information should be delivered through
channels and in formats that mesh well with users’ information
preferences and work habits.
Environment Intelligence based Information
Services
As information needs of employees in an organization are quite diverse,
libraries should consider offering a variety of information services targeting
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Singapore Journal of Library & Information Management • Volume 38 • 2009 22
different segments of its users. Usually organizations, based on the attributes
of their environments, decide what types of information products and services
will be useful for meeting the information needs of their users. Some of the
following services can be used for disseminating intelligence gathered through
environmental scanning:
A. Daily Briefings: Some organizations arrange daily briefings for their
staff to highlight certain important issues, including possible
implications of intelligence gathered from the environment. This face-
to-face interaction provides an opportunity for the staff to ask
questions and express their opinions on new developments.
B. Environment Intelligence Alerts: These alerts are like ‘breaking
news’. A library on receiving an important news from the environment,
needing immediate attention, may send an email or SMS ‘alert’ to all
concerned individuals and departments for taking appropriate action.
Such a service can help organizations to immediately respond to an
emerging situation and avoid or minimize its negative effects.
C. Periodic Intelligence Reports: A library may compile regular
environment intelligence reports on different topics. The frequency of
such reports usually depends on the complexity and degree of change
in the external environment. Many organization issues such reports
either on a monthly or quarterly basis.
D. On-demand Environment Intelligence: An organization, before
embarking on a new project or initiative, may ask its library to conduct
one-off environmental scanning on a given topic. At the time of
strategic planning, it may also ask its library to provide more
comprehensive and in-depth analysis of the external environment.
Preparing Competent Information Professionals
As there is a degree of overlap between information management and
environment intelligence activities, some of the competencies provided by LIS
programs to their graduates will be useful in undertaking environmental
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scanning. Nevertheless, information professionals need an additional set of
competencies to effectively provide this service. For example, LIS
professionals would need a basic understanding of business and marketing
principles to effectively undertake certain environmental scanning activities
such as competitor intelligence and business intelligence.
Library and information programs are using different approaches for preparing
LIS professionals with adequate understanding of environmental scanning and
related disciplines. Some LIS programs offer full courses on environmental
scanning, competitor intelligence and other related subject areas. For example,
the College of Information Studies, University of Maryland (USA) offers a
course on ‘Environmental Scanning for Information Managers’
(http://www.clis.umd.edu/courses/syllabi.shtml). Some LIS programs offering
courses in ‘competitor intelligence’ are Loughborough University (UK), the
University of British Colombia (Canada), Drexel University, University of
Denver, Dominican University, University of Illinois, University of Maryland,
University of Oklahoma, and Rutgers University. A course on ‘business
intelligence’ is taught in the information studies programs at University of
Tennessee (USA) and Nanyang Technological University (Singapore).
Some LIS programs include environmental scanning and related topics as a
segment of a broader course. For example, the Faculty of Management and
Information Sciences, University of Brighton, covers these topics in its course
on ‘Managing Information Services’ (http://www.brighton.ac.uk/cmis/courses/
postgraduate/information/). Similarly, the focus of the ‘Information
Management’ course in the School of Communication and Information,
Nanyang Technological University, Singapore, is on environmental scanning
and competitor intelligence (http://www.ntu.edu.sg/sci/graduate/
information_studies.html).
Recognizing that ‘hybrid’ professionals, possessing in-depth knowledge of
information and business management, will be in a better position to
effectively meet the information needs of a business organization, some
academic institutions have started offering dual degrees in business
management and library and information science. For example, the University
of Michigan offers a dual-degree programme leading to a Master of Business
Administration and a Master of Science in Information
(http://www.si.umich.edu/msi/dual/mba-msi.htm). Similarly, dual-degree
programmes leading to a Master’s degree in Business Administration and a
Master’s degree in Library & Information Studies are offered by Dalhousie
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Singapore Journal of Library & Information Management • Volume 38 • 2009 24
University, Canada (http://management.dal.ca/Degree%20Programs/
Dual_Degree_Programs.php) and by Kent State University, USA
(http://www.slis.kent.edu/index.php?option=com_content&task=view&id=
77&Itemid=113).
Conclusion
Library and information science professionals need to use innovative and
creative ways to meet diverse information needs of their users. It is
particularly important as the work environment is becoming increasingly
complex and competitive, and companies need to react immediately to
changes happening in their external environments. It is, therefore, crucial for
employees in these companies to have quick access to high quality, accurate,
up-to-date and reliable information to make timely and well-informed
decisions. Information professionals, in addition to providing traditional
library services, need to use non-traditional and innovative methods to meet
highly specialized information needs of their users. One such service which is
becoming popular in almost all types of organizations is providing access to
environment intelligence. As standard information sources are relatively less
useful in gathering environment intelligence, LIS professionals need to
identify and use a variety of non-traditional information sources. Library and
information education programs also need to look beyond the traditional LIS
jobs and start preparing professionals for emerging job roles.
References
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Chorney, L. B. (2000). Environmental scanning in Pittsburgh Proprietary
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About the Authors
Shaheen Majid, Associate Professor, Wee Kim School of Communication &
Information, Nanyang Technological University, Singapore
Email: [email protected]
Christopher Khoo, Associate Professor, Wee Kim School of Communication
& Information, Nanyang Technological University, Singapore
Email: [email protected]
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