Current management approaches to resource-based strategy and core competenc
e thinking require extensive intelligence gathering to ensure that correct
assumptions are being made about the environment and competitors' capabilit
ies. Without such intelligence any attempts to develop, maintain and in man
y cases even identify the key assets and competences are flawed. Often the
very people who are best placed to carry out intelligence appraisals are th
ose contributing strongly to mainline business activities of technology dev
elopment and business winning. Because of this potential conflict the intel
ligence process must be efficiently targeted. Existing methods of intellige
nce concentrate on the process of intelligence gathering, frequently using
military analogies. To the extent that a competitive system model can be cr
eated these existing approaches can be made more directed in their applicat
ion and therefore more efficient in their use of valuable in-company resour
ces. Moreover, the very expression of a competitive system model can improv
e the appraisal process itself. The applicability of a general system model
ling technique, used extensively in business process modelling and known as
qualitative systems dynamics (QSD) is described and its applicability to t
he intelligence targeting problem is examined through the use of a case stu
dy. It is shown that the method is accessible and relevant to competitive i
ntelligence problems. An example from practice, the competitive analysis of
a major international defence company, is shown. It is seen that the level
of analysis (data points, process understanding, systemic knowledge) relat
es closely to the elements of the system model and this concordance aids ta
rgeting. (C) 2000 Elsevier Science Ltd. All rights reserved.