Imaging Notes - May/June 2000 Sizing Up the Competition

Sizing Up the Competition
Earth information takes commercial intelligence to a new level.

By Dan Leger, imagery intelligence analyst, ImStrat Corp., Ottawa, Ontario, Canada

For decades, military imagery analysts have been interpreting imagery to detect their adversaries' movements, equipment, habits, tactics, capabilities, intentions and strengths. Imagery's main purpose in the military is for reconnaissance. Since remote sensing began, intelligence has been gleaned from it.

Now, with 1-meter resolution imagery available, the same type of information extraction can be used by businesses to determine a competitor's movements, equipment, habits, capabilities, intentions and strengths. The main use of imagery in the business world is for research. However, it's a niche that hasn't been identified yet. Why, then, has this important source of business intelligence been used only in military applications?

Factors
First, one word: Resolution. High-resolution images are required for military applications of information extraction or imagery intelligence. With the advent of higher-resolution space-borne imaging systems, the commercial application of information extraction is a reality.

The second factor-training-is a product of the first. Because there previously was no satellite imagery suitable for commercial applications of information extraction, no commercial (civilian) analysts possessed military-type training, and those trained by the military didn't transfer their skills to the commercial sector even after higher-resolution imagery was available. The reason those skills haven't been transferred leads to the third factor.

ImStrat Corp. and spaceimaging.com

Figure 1. Even though a company claims better-than-expected sales of a new product, satellite imagery reveals that its shipping docks are deserted, cranes aren't moving and employee parking lots are empty.

Historically, there haven't been many ex-military imagery analysts available for the commercial work force. At one time, the military was a life-long career. Late retirement from the military (at age 55) resulted in retirement from the work force completely. Today's military men and women are retiring in their late thirties or early forties, with many years of work still ahead.

Pair higher-resolution imagery and ex-military analysts available for interpretation and you have a new form of business intelligence.

Gleaning Intelligence
Combined with other publicly available information, vast amounts of data can be gleaned from high-resolution imagery. But even when not privy to other information, experienced image analysts can draw many accurate conclusions from imagery.
Because the application of competitive analysis is rare in the commercial remote sensing world, information extraction methods can be awe inspiring. Extraction isn't simply looking at image features or relying on software algorithms. Analysts must have detailed training and experience to recognize patterns and key activity signatures.

Although some North American businesses may be a bit standoffish about spying on their competitors, they must be aware that their competitors may be watching them. Other parts of the world aren't as squeamish about commercial spying and already use imagery intelligence to help determine what their competitors are doing. For example, imagery can help a savvy business person estimate a competitor's number of employees or customers, structural changes, and production flow/rates

Even though aerial photography of a competitor's facilities is against the law in many countries, satellite imagery acquisition is not.

Using Imagery Intelligence
Two fictional scenarios have been created. Due to the sensitive information that can be derived from imagery analysis, two innocuous sites were chosen. The simplified examples cited here clearly illustrate the amount of information that can be derived from periodic analysis of the area of interest.

Public statements, press releases, financial data and other available information often prove to be ambiguous. Sending observers to various sites is an option, but satellite imagery can be more cost effective, especially if your competitor is halfway around the world.

ImStrat Corp. and spaceimaging.com

Figure 2. Competitive surveillance reveals that this company is thriving-adding facilities, improving its test track and numerous vehicles ready for shipment-despite public comments to the contrary.

Scenario No. 1
Imagine a container pier as your competitor's international shipment point 2,000 miles from your corporate headquarters. The competitor publicly claims that its new product is selling beyond expectations, but imagery of its shipping area tells another story. A bulk cargo ship is observed near the facility, but it isn't associated with shipping activity at this particular port. Periodic analysis shows that only one container ship is docked at the pier, and many of the containers haven't moved for several weeks. The employee parking lot is empty, and the gantry cranes haven't been moved since the first of the month. Public statements to the contrary, your competitor isn't doing as well as it claims (Figure 1).

Scenario No. 2
Your competitor claims that vehicle production is down and its second research and development (R&D) facility will be shut down, leaving it with only one R&D facility. The facility that's supposed to be shut down is heavily secured, and access is limited to employees only. In addition, high walls surround the facility, precluding ground observation. However, imagery of the R&D facility shows that four production buildings have been built, and the foundation for a fifth building is in place. The test track has been improved, and numerous vehicles await shipment. Absolutely no signs of facility downsizing are evident (Figure 2).

Other Uses
Competitive intelligence isn't the only use of high-resolution imagery. Image analysts also can use their analytical skills to assess natural disaster damage, aid city planners, monitor wetlands and park lands, map animal habitat, and enhance law enforcement surveillance. Roofers, landscapers, contractors and pool maintenance companies could focus their business advertising to target specific customers who could benefit from their services.

With the advent of high-resolution imagery, competitive intelligence has yet another tool-a new type of imagery-derived data whose applications are almost boundless.