
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, May 10, 1990                   TAG: 9005100136
SECTION: BUSINESS                    PAGE: A11   EDITION: METRO 
SOURCE: STEVE WILSTEIN ASSOCIATED PRESS
DATELINE: SAN FRANCISCO                                LENGTH: Medium

CORPORATE SPYING IS BIG TIME, BUT KEEP IT QUIET

Corporate spies shun cloaks and daggers, and the midnight break-in is a no-no. These days, it helps to have an advanced college degree and the know-how to sniff out information with a computer.

Jan P. Herring, a CIA analyst for 20 years until 1983, is one of the new breed of corporate spies who have banded together in the Society of Competitor Intelligence Professionals.

"It's clearly a profession whose time has come," Herring said at the 4-year-old, 1,400-member society's annual meeting recently. "What has caused it to happen is competition, particularly among American companies that for the first time are experiencing both international and corporate competition."

As recently as a few years ago, most American corporations were satisfied to research their own markets and customers. But many find that knowing the competition can help a company capitalize on its own strengths, shore up weak points, take advantage of opportunities and counter threats.

Corporate spying, unlike its notorious relative, industrial espionage, is an honorable business with a written code of ethics, said Bob Margulies, competitive assessment manager for McDonnell Douglas Corp. in Long Beach, Calif., and new president of the society.

Corporate spies don't try to ferret out confidential information or bug meetings in their rivals' offices. Rather, they rely on public information and interviews with experts.

"It is not glamorous work," said Margulies. "It is pure, unadulterated research."

In Japan, it's an old and respected custom.

"They're the ones who started it," Herring said. "They do it almost by second nature."

The information explosion of the past decade, fueled by better computers and a proliferation of data banks and specialized publications, has enabled corporate spies to find out almost anything they want.

"You'd be very foolish to accept inside, confidential information," Margulies said. "It's unethical and it's illegal. Ninety-five percent of what you need is readily accessible."

Margulies estimated that more than 10,000 people are working in competitor intelligence for hundreds of companies. Starting salaries for those with degrees and business experience are at least $30,000, he said.

by CNB